Granted the ability to buy a place for your children as they head off to College or University is not for everyone, but for some people it is a great way to launch their kids and make sure they do not come back.
Depending on where they go to do their post secondary education it can often make financial sense to buy something. If they were going to stay home anyway and everyone is happy then maybe this is not for you.
If your student is heading off to a new town then it is time to consider the cost of a down payment and a mortgage relative to the cost of being in residence, or if you were planning to help them get started anyway then why not now. When they graduate they can either run it as a rental property or they can sell it and use the proceeds to buy their next home, if they have decided where they want to set down roots.
Owning a place can help build a sense of responsibility; managing a roommate and rental obligations can teach even more.
If you have 2 students going to the same University or College then it really does make a lot of sense from almost every angle.
Things to consider.
* Housing market in the city or town where they will be located.
* Term of the mortgage
* Rental rates
* Portion of mortgage payment that goes to principal (this is a form of savings)
And more, if you want to discuss your options then please feel free to call. I would be happy to go through your options with you and help you think through whether this is the right step for your family.
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