The Wise Investment Of University Apartments: More Than Just A Roof Over Your Children’s Heads

August 22, 2023

When a child takes their first steps into adulthood, stepping into the hallowed halls of a university, it’s a moment that swells your heart with a mix of pride, anxiety, and nostalgia.

As parents, we are ceaselessly looking for ways to secure their futures, and that doesn’t stop when they head off to college. The prospect of university fees is stressful enough, but then there’s the question of accommodation.

Do you opt for renting an apartment, or is there a smarter way? Why not make an investment and buy an apartment?

The initial thought might strike you as extravagant or perhaps even reckless. Why buy when you can rent? Isn’t it just a temporary need for their few years at university? Well, that’s precisely the perspective we aim to shift today.

Why Buying Is A Smart Long-Term Move

You Could Be Buying A Growing Asset

Unlike renting, where your money essentially goes into the landlord’s pocket without any long-term return, purchasing an apartment can be seen as an investment.

As with most real estate, these apartments often appreciate in value. When it’s time for graduation and the caps are thrown in the air, you might find that the value of your property has significantly increased.

Instead of you growing the equity in someone else’s property, you’ve improved your financial position. 

Buying Gives You Future Options

Once your child finishes their studies, you have multiple choices. Renting out the apartment to other students can provide a steady passive income.

If you have younger children, the apartment awaits their university years, saving you from future accommodation hassles.

The advantage you have is that colleges and universities create the perfect level of accommodation demand; it is a self-feeding economy.

Unlike buying a house in a town or city, where you’re not always sure if you’ll find a renter, a college apartment will always be in demand. 

Building Your Equity In The Asset

Each month, as you pay down the mortgage, you’re building equity in the property. This equity can be a financial cushion for other ventures or needs in the future.

If you buy a two-bed apartment, your child could share the apartment with someone who can pay their share of the apartment costs, essentially meaning someone helps you pay the mortgage and build equity in the property.

Plus the repayment on homeowner loans would arguably be similar to, if not cheaper than rental amounts. 

A Personal Touch

Purchasing an apartment isn’t just about the financial benefits. It’s about creating a space that your child can truly call ‘home’.

If you take the time to furnish and decorate the apartment in a way that resonates with their personality, ensuring that they have a cozy place to return to after long classes or socials.

It becomes a space where they make countless memories, host friends, and truly grow as an individual.

Lessons For The Young Adult

Owning an apartment also serves as a gentle introduction to adulthood for your child. They learn about responsibilities that come with homeownership – utility bills, property taxes, and maintenance.

These valuable life lessons go beyond any classroom teaching. Plus, they’ll take better care of it because they know the family owns it. 

For many parents, sending a child off to university is filled with a mix of emotions. By choosing to invest in an apartment, not only are you setting up a profitable future, but you’re also giving your child a stable foundation as they take on the world. 

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