College Town Real Estate Investments Score High Marks
The closest thing to a sure bet in real estate may be going to college.
Investments in college towns -- places where the community is shaped by a university's presence -- have done well while other niches in the housing market have, for the most part, fallen off the Dean's List. It comes down to the basic law of supply and demand. College enrollments have increased while the supply of on-campus housing hasn't. More often, students are turning to off-campus options. And that's where you should be standing with your wallet ready to fill with rent checks.
How secure an investment is college housing stock? The default rate for Fannie Mae and Freddie Mac's student housing portfolio has been less than one-half of 1 percent -- outstanding given what's been going on in the rest of the housing market.