Be A Landlord To Save Money
It’s just a plain old reality that living anywhere close to campus costs a bundle of money. Mitigating living expenses can be a huge part of surviving college with your finances (at least a little bit) intact. To that end, have you ever thought of being a landlord? While it’s a pretty foregone conclusion that no bank is going to let you be a landlord as a college student unless you have a unique situation, if the circumstances are right, your parents may consider it.
You can add up the expenses and present the idea to them since they may also be paying for a portion of your college expenses. How much will living on or near campus cost you? How much are local houses selling for? If you had 2 or 3 roommates could you cover the mortgage, maintenance, insurance, and taxes? Even if the answer is “no”, or “it’s too close to make it worth it”, there are some other advantages that are also worth considering before making the decision.
Advantage 1: Appreciation. No, it’s not that people will like you better. We’re talking about the good kind of price inflation. Most places are experiencing housing market appreciation, so there’s a good chance you’ll be able to sell the house for more than you paid for it (there is also a risk that you can’t)
Advantage 2: Taxes. Your parents will be able to able to deduct all sorts of things they wouldn’t be able to deduct if you were renting from somebody else. They can even deduct what they pay you to mow the lawn.
Advantage 3: Siblings. If you’ve got a brother or sister who will probably be going to the same school as you are, the benefits of owning a house nearby just doubled.
Of course, there is a downside of owning too. You’ll have to collect rent from your friends and make sure the house it kept up. You’ll also have some “unplanned learning opportunities” in the areas of finances and maintenance when the furnace breaks or the roof leaks…but owning your own college home can be a huge financial benefit and is worth at least considering.