Invest in Boston property for your college-age child
For some parents, when it's time to send their children off to college, they need to equip each student with a laptop, some new apparel and the basic necessities they're accustomed to at home. However, many more families are providing their college-age kids with something a bit more substantial - property.
According to realtors in some of the nation's hottest rental markets, parents are opting to invest in real estate, rather than submit monthly payments to landlords. Real estate in Boston is often claimed by homebuyers for just this reason.
Currently, Boston features a median list price of $334,900, compared to average rent at $3,084. The estimated mortgage payment is $1,240, which nets a monthly profit of $1,844. This data comes from a recent report published by U.S. News and World Report, and homebuyers with kids going away to college may want to consider the financial benefits of investing in an apartment, rather than a dorm or rental unit.
"I've had parents of students get frustrated with the huge price tag on some of the rentals here in the Boston area and they found that it made more sense to buy a condo for their child," local real estate expert Willie Mandrell said to the news source. "Most recently I worked with a Boston University student and her parents purchased a two-bedroom condo in South Boston for her to live in while attending school."
However, parents of children attending school in Boston aren't the only people looking to purchase homes, rather than rent in the area. This has created a unique housing war between prospective investors, and as a result, prices may be driven up to incredibly high levels.
Boston is an innovative city with some of the nation's most well-known universities. While students flood into the city each school year and bolster the economy, the area is busy year-round and is a great place for job seekers to consider for their next home. Recently, the Greater Hub area has been recognized by some of the country's most influential news sources as being a great place to raise a family, which has encouraged more buyers to enter the area. If families plan to purchase Boston property, they should do it soon before the affordable units are claimed.