The Pros & Cons of Buying a House in College
As summer comes to an end and the new semester approaches, you may be asking yourself, “Is now the time to buy a house?”
With rent prices soaring, it’s no surprise that some college-bound students have considered purchasing a home rather than continuing to pay skyrocketing rent.
Review the following list of pros and cons to determine what makes financial sense for your particular situation.
If you can afford it, owning real estate in a college town can be a great investment. As a student, you can rent out rooms in the house to tenants to help pay for the mortgage so the burden doesn’t completely fall on your shoulders.
After graduation, you can either live in the home or continue to rent it out to other college students or families that live in the area.
Being a full-time college student is stressful enough, add to that the responsibilities of being a homeowner; such as maintenance, repairs, and homeowners insurance, and you may decide owning is not for you.
Additionally, owning a home may make it more difficult for you to move or relocate after college. According to the Pew Research Center, about 45 percent of recent college graduates move back home after graduation.
Most college students will not have enough income or time to own a home or serve as a landlord. However, for those that do, the rewards may outweigh the risks.