Buy real estate for your college kid? Isn't paying tuition enough?
Turns out that in the right areas, it can be more economical -- and maybe even a good real estate investment --for parents to buy their child a home or condo in a college town instead of tossing money on rent or dorm fees.
"Parent investors" are a savvy group of homebuyers who invest in college town real estate for their kids to live in while attending school. A survey by Coldwell Banker found that 64 percent of its real estate agents are seeing a significant number of parents investing in homes for their kids to stay in while they attend college. Seventy-three percent of those surveyed said that those buyers are buying homes or condos near college campuses and renting them, with only 21 percent seeing a decrease in this trend over the past five years, despite the recession.
But once the kids graduate, are mom and dad left holding the mortgage?