Should You Buy A House As A Student?

 

Between steep tuition, textbooks, housing and living costs, student budgets are notoriously tight. So real estate is probably the last thing on most college kids’ minds. But with creativity and wise planning, investing in property as a student can pay off big time down the road!

Weigh the Pros and Cons

Buying real estate young lets you build equity, tax advantages and appreciation over decades instead of years. Rental income can offset housing costs and student loans too. But becoming a first-time homeowner while still in school carries financial risks and responsibilities as well.

Getting a mortgage with minimal credit and employment history is difficult, though student loans boost scores. Saving enough cash amid college bills for a downpayment of 10-20% is also tough for most pupils – but there are first-time homebuyer programs to assist responsible students. Inherited funds or family gifts may offer another way to secure starter financing.

Prepare for Added Effort

Owning a rental property or simply maintaining your own student housing comes with hands-on obligations like mowing, shoveling, renovations and dealing with unruly tenants and emergency repairs – all on top of exam cramming!

Being a student landlord demands budgeting ample time and cash. Hire professional property managers if possible. Also brace for vacancies and rental droughts reducing income stability.

Run the Numbers

Crunch figures to realistically weigh buying costs like mortgage payments, insurance, taxes, maintenance and utilities against rental income potential in your college town. Remember to factor in other housing options like dorms, sharing an apartment and foregone investment returns tied up in the property.

Owning real estate definitely builds long-term wealth. But the responsibilities and required capital may be too much for most college kids. Waiting until after graduation to buy property when more financially stable may be the smarter play!