As the summer draws to a close and the start of the school year creeps ever closer, university students and their parents have a lot of important decisions to make, not the least of which concerns housing. While in the past the question of housing has generally hinged on which dorms to request on your application, in recent times it has shifted somewhat. The new question is: live in a dorm or buy a condo near campus? The latter can be a smart investment for the long-term, especially in the midst of the current market for real estate in Chicago.
Parents are becoming increasingly drawn to the idea of investing in a property for their college-bound kids to live in while attending school in Chicago. There are several advantages to this option, such as building equity, getting tax deductions and securing a future home for themselves. Rather than throwing money out the window by paying additional tuition for a dorm or renting an apartment, buying a two- or three-bedroom condo in the city can prove a worthwhile venture for the whole family. Factor in the rise in affordability of owning a home (especially in relation to the elevating costs of renting), and buying a Chicago condo within the vicinity of your university starts to make a whole lot of sense. Even more so if you plan to get a couple of additional student-buddies of your child to live there and split the cost of the mortgage.
Many students living in Chicago condos owned by their parents find they have more control over their living situation than if they lived in a dorm. For example, they may have their own laundry and their own parking space, plus they are somewhat removed from the noise and chaos of dorm life. Of course a number of students are drawn to the camaraderie and fun of living in a dorm and may therefore opt not to remove themselves from the scene. Which is why investing in a condo—like all real estate investments—is a personal decision that hinges upon your individual situation, preferences and life goals.
When considering whether or not to buy a condo in Chicago for their child, parents should hire a real estate agent who is familiar with the area. A professional realtor can educate parents on neighborhood amenities and provide information about the particular condo buildings in which they are looking. Even with an agent on the job, parents should learn as much as possible about the Chicago real estate market. There is no harm in looking at numerous buildings, comparing and contrasting pros and cons, and following the market conditions and trends. In fact, it’s a smart idea. Also, keep in mind it is a particularly affordable time to invest in real estate if you have the means. So if you have a kid going to college in Chicago in the near future, it might behoove you to do a little research into buying a condo near the school.
I agree with the article wholeheartedly. I would add that most of the “deals” to be had are short sales. That being said, parents should start looking 8 to 10 months in advance, rather than 3 to 4 months for a traditional purchase. Failure to do so will result in their not having the chance to entertain well priced short sales.