University Lofts: Why You Should Buy A Condo While Studying
Preparing for college? Congratulations are in order. Higher education is a big step, and a potential pathway to future success, if you can bear the costs.
And the frozen pizza dinners!
Unfortunately, college costs are continuing to rise. Including frozen pizza.
Tragic, I know.
In particular, room and board, which now averages $8,887 a year at public schools across the United States, and $10,089 at private schools.
This is a significant increase when compared to prices just as recently as 1990, when, even including tuition, students could expect to pay around $6,562 per year.
If you've got someone footing the bill for you, it might not cause great concern.
Those trying to handle their own expenses, though, might be motivated to seek ways to bring those costs down in hopes of saving money.
One method many students have found effective? Purchasing off-campus university lofts for the duration of their studies.
Let's take a look at a few things to consider when attempting to go this route.
University Lofts: A Few Considerations...
The upside is simple. If you can score the right off-campus property, you'll be paying less than what you would on-campus.
For example, in places like Hampton, VA, there are condos as inexpensive as $56,000, which, after a 20% down payment, would average a yearly payment of $2,592 according to data from Realtor.com.
It's important to note that purchasing off-campus university lofts isn't a magic bullet to college money woes, though.
If you're already struggling with finding the money for college payments, you'll likely struggle trying to invest in a condo and make those payments as well.
If you have the capital for the investment, though, it could be advantageous if you play your cards right.
University Lofts: Deal Yourself a Good Hand
First, you'll need to consider if the off-campus lifestyle is right for you.
Some students don't fare well being away from the "action," so to speak.
Commuting from the university lofts to campus could complicate the already difficult nature of college life. That's why we always suggest getting something as close to campus as possible.
Further, the responsibility of owning and maintaining a property might not be one that you're ready to undertake, which is fine.
University Lofts: Be Your Own Landlord
Think about whether or not this is something that you can handle and proceed accordingly.
Will you be able to take on the additional costs associated with university lofts?
Owning a property requires more than just mortgage payments. Utilities and (possible) condo dues will also factor into the equation.
But, better you line your own pockets and pay your mortgage than pay someone else's. Or your college's.
University Lofts: Other Considerations
You'll need to weigh your options and look for a location where these costs will be manageable.
You'll need to consider if you're going to invest on your own or take on a roommate to help shoulder the costs.
Bringing in a roommate can be a great way to supplement your income and offset the costs of owning.
University lofts can get expensive, so it's not unreasonable to want to diffuse the expenses between several individuals.
This, however, brings on further challenges. You'll have to screen potential tenants to find the ideal candidate.
You'll also have to collect rent from whoever you decide to let share your abode.
You don't want this guy:
Can you balance being a student and a landlord at the same time, all the while maintaining your social life?
Typically, the answer is yes when people consider they can earn a clean few hundred bucks extra a month.
Your Future Plans
You'll also need to think about your post-graduation plans as. Will you remain in the area and continue to make payments on your investment?
If you intend on moving to pursue other opportunities, you'll need to sell, or continue renting.
If you can navigate these trials, however, university lofts present an excellent opportunity to save some money.
Run the numbers and see if this is a solution that will work for you and your budget.