Should You Purchase Real Estate Near a University?

Purchasing real estate near a university has its pros and cons. This is true of any housing market, but college town real estate is a very particular type of market. It’s important to note that there is definitely a lot of money to be made, but you should also know that there are a lot of ways to get burned. This means that you really need to know what you’re doing, and having WSU’s MBA degree might help you with that, but it won’t be enough to prepare you for the business acumen that you’ll need for this type of investment. You will need to do a lot of research, and it couldn’t hurt to hire a financial advisor who knows a thing or two about college real estate as well. Here’s a few things you should know before you purchase real estate near a university.

Know the Reputation of the University

The first thing you want to look into is the reputation of the university. You don’t only want to know the academic reputation of the school, but you also want to know what kind of reputation the student body has for partying. For example, if you are looking at real estate near Kent State University, you will want to make sure that the academic standards are high and the party reputation is low.

Decide What You Want to do with the Property

The return on your investment is going to completely depend upon what you want to do with the property once you buy it. Are you going to flip it? Are you going to live there? Or are you going to rent the property? If you do decide to rent, you need to decide if it will be a rental property for undergraduate students, graduate students, or college faculty. If you decide to rent to undergraduate students, then you will need to keep a close eye on the property and it isn’t a bad idea to hire a property manager.

Research the Turnover Rate in the Neighborhood

If you plan to flip the property, or even if you decide that you want to rent it out for a while and then sell it, you will want to know how long it will take to sell. A good gauge of that timeline can be determined by looking at other houses that have recently sold on the same street or at least within the same neighborhood. If the turnover rate is rather long, then it’s definitely not a wise investment.

Give the House a Full Inspection

Finally, before you buy any property, you want to make sure that you give the house a very close inspection. Everything from the plumbing, to the electricity, to the foundation should be thoroughly inspected by professionals. It’s also imperative that you have the house inspected for mold and mildew. A lot of college students underestimate the importance of using ventilation fans in the bathroom, and before you know it, the entire house could be rotting from the inside out.

4 Reasons to Purchase a Home in a College Town

There are a lot of reasons to buy property – you may want to put down roots, you may want to flip the property or you may want to make it a vacation rental. Whatever the case is, investing in real estate is a good idea. Also, where you invest really matters. That old adage about location really rings true. This is why you may want to think about purchasing property in a college town. College towns have a unique appeal, because they are close to campus and they are close to a lot of cultural events.

Moreover, it is easier to get to the market and purchase supplies when you are closer to town – opposed to being up in the hills or stuck out in the suburbs. This is just one good reason why you want to think about investing in property in a college town. Here are four reasons to purchase a home in a college town.

  1. Your Child May Want to Go to the College and Live Close By

If you are planning on starting a family, you may want your child to eventually go to the college that is in the college town where your property is. Experts recommend saving and thinking about college before your child is born. You could even purchase another property and let your child not have to worry about campus housing.

  1. You Can Always Flip the Property and Make a Profit

College towns are also really hot when it comes to real estate prices. This means that the property you buy now may be worth much more in a few years. You may want to make a few upgrades and then sell it for a profit. This is a great way to get in on the real estate market. For instance, if your property is near Clark College or even Yale, you could have the property ready and primed by the time people are looking for places to live.

  1. There is the Option of Making it a Rental Property

Another way to make your property turn a profit is by making it a rental property. You can do this by opening it up to renters – either faculty or students. Of course, if a student is going to USC Online, he or she won’t need a place to stay, but if that student decides to take on-campus courses, he or she will need a place to stay. You could also open up the house to multiple students, especially if there are a number of comfortably sized rooms.

  1. You May Want to Go Back to College

On top of everything, you may eventually want to go back to college. If you are ready to go back, you could have a property that you can move in to. When it comes to parking and living expenses, having your own domain – with a low monthly mortgage – can be a huge boon. In the end, you could flip the property when you graduate and have enough money to jump to your next adventure.