Investing in Your Child's Future

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There is still time to use your child's move to University as an investment opportunity for yourself. Searching the ads for an apartment for your child can be frustrating. The viewing usually consist of a bathroom, kitchen area and studio area that turns out to be no bigger than his or her bedroom at home!

A year or two ago it would have been madness to consider buying a home for your son or daughter to occupy for their University years. At that time, some areas of USA were experiencing their boom and now they are in the 'bust' part of it. Many University and college towns had less of a boom / bust realty bubble, as these 'school' towns and cities tend to be more stable.

One outside factor which is worth investigating is the University housing situation. This can make a difference to private rentals, for instance, if it has been overbuilt then you may not wish to participate in an investment opportunity in this particular town.

However, if this is not the case, and you buy now in order to save paying rent, it makes good financial sense. Your son or daughter can 'manage' the place for you – and learn some of the hard facts of life! Your child will also have a better room and a choice of how noisy the 'student home' should be.

If you find a suitable house, which will normally have five bedrooms – if the basement is finished – then you can multiply your rental income times five for your net income (or times four if you will give your child a free room).

From this figure you pay your mortgage, your property taxes, the Internet and the power bill. These days most students expect to have accessible Internet in their rental accommodation. You can connect the heating to a timer to ensure that power is not wasted. Allow a certain amount for maintaining the house and then you will know approximately the amount of rent you will need to make from the house.

In order to keep the relationship sweet between you and your child, make each student responsible for putting the monthly payment in your bank themselves (ie do not make your child the 'rent collector'!). Some students prefer to pay a lump sum up front if they collect a student loan at the beginning of each semester, and this is advisable!

One small investment that will be required of you is to change all the bedroom door handles so that each student can lock his or her own door. This will only cost about $ 10 for all five doors. Spare keys to all rooms may be held by you. You must also cut five keys for the front door.

If the University town is a long way from your home town, then plan at least one visit a year – just to make sure that the wild party that we all hear about is not happening at your house!

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Source by Vk Melhado