Get your college student out of your house...and into your other house?

by Ron Daly

Most of you folks have already taken your college students back for another year of higher learning. Man, is that on campus housing ever expensive!  Wouldn't it be nice if there was available real-estate near your child's college? 

Chances are, there are houses and apartments abound near your young person's school...and that could mean a real-estate treasure trove for you. 

From the Washington Post: 

By buying a place and taking out a mortgage, non-deductible dorm rents can be converted into tax-deductible mortgage interest payments.

Parents also benefit from tax deductions for real property taxes, depreciation and the costs of repairs and replacements, as well as travel expenses to locate, acquire and periodically inspect the investment property. The parents' tax burden might also be lessened by the capitalization and amortization of capital improvements made to the residence.

The article presents a pretty compelling case for buying a piece of real estate near a school, focusing mostly on write-offs and tax deductions, but also points out the benefits of not moving your student every year they're in school (hallelujah) and the eventual resale value of a building for whom there will always be interested buyers and renters. 

It's not all smiles, however; the article presents several drawbacks to owning a home near the university, including...well, the fact that your university student will have a home of their own to manage - or not manage - or, heck, outright destroy. Being a landlord is tough enough, but then there's dealing with your own kids as tenants and college students. 

My take? If you've got the means, you should go for it. Your student needs a place to stay, you need a write-off or two, the economy needs a pop in first-time home sales - everyone wins! If the money's cheap, make it happen. Just be very specific about your expectations to your young person before you hand over the keys. 

My take as far as credit unions go? How about a lending-bundle? Programs like Student Choice are making student loans from CUs more convenient to find and programs like CU Realty are giving you great mortgage rates and even cash back. A borrower that's smart enough to smell the opportunity is a borrower you want. 

What do you think? Let us know in the comment section below.