One big dilemma college students have is whether or not to rent or buy property when attending college. While this decision mostly concerns the parents, college students can also weigh in on the discussion.
With valid points on both sides, let’s see in which situations is better to rent or buy.
How Long Does Your Kid Need To Stay?
It’s obvious to think that students take three to five years to complete college. It depends on many things, but three to five years is how long most college students take to finish their studies. So ask yourself this, do you plan on renting the same or multiple apartments for that long? Is it worth spending the money over buying it?
The question becomes less complex if you have multiple children around the same age range attending the same college. In that case, is it worth buying the property or renting it?
While no doubt many of you would seek expert advice such as a financial consultant, but the answer is really simple. In an ideal scenario, you want to make sure that your children don’t frequently relocate and go apartment hunting. When that’s the case, it’s a much better option to buy an apartment.
How Good Are Your Finances?
While buying an apartment or other property for your kid sounds like the more convenient thing, we have to look at it from a different perspective.
Buying property isn’t cheap. You can also make the case that renting is even more expensive if we compare the monthly rates for renting and the monthly mortgage loan fees. But if you’re not in a position to buy an apartment, then it’s always a better option to rent it.
But here lies another problem. As some of you are aware, renting has never been more expensive. Students struggle to find affordable accommodations, as reported by USA Today.
A single-bedroom condo can cost up to $1,000 a month to rent! Compare that with how much you’ll be paying monthly for buying the place, and the latter might just be the more affordable option.
Ultimately, check your finances whether or not you can buy an apartment or similar property for your kid when going to college.
Consider It An Investment
There is one thing that buying has over renting. Namely, buying is an investment compared to renting. When renting, you’re not the owner of the property. Even if you agree on a multiple-year lease, you are still paying to live there.
When you buy a property, you become the owner. You can do whatever you want with it. And here lies a unique opportunity for you. Once your kid finishes college, rent out the place. There are hundreds of thousands of people, and students, in need of accommodations. With tenants wanting both short-term and long-term accommodations, buying property to rent presets a unique opportunity.
Other Reasons Why Buying Is Better Than Renting
So far we allude to the fact that you should consider buying a property as opposed to renting. Apart from the obvious fact that this is an investment, other reasons exist why you should do it.
The first one we’re going to talk about is the fact that you’ll be putting your kid in a good living situation. Cheap accommodations aren’t perfect. Who knows what the accommodation has gone through and in what state the landlord keeps it. When buying a small apartment, you know you’ll do a good job of proving your kid a good living environment.
Another reason is that your kid won’t have to move every six or twelve months. Renting leases can be very flexible, but that doesn’t make them better. Having to constantly relocate from one place to another isn’t something that many students want to go over.
When they feel they’ve finally settled in, the lease comes up and they have to find other accommodations. It might cost more in the long term, but it provides a long-term place to live.
And the last reason why buying is better than renting is that you’ll be teaching your kid a valuable life lesson. Since this is a type of investment, your kid will have to learn how to manage it and even become self-reliant. They will need to look after it and maintain it.
Not only that, but it might be their place to live in the future. So, they will have to take the burden, at some point, of paying for it themselves.