Buying a Home for Your UCF Student: A Financially Sound Decision

As we approach the middle of summer, many families will be thinking about sending their recent high-school graduates off to their first year of college. Congratulations to all of you potential empty-nesters out there! We can talk about downsizing in a different article!

College is a time of great change and financial investment for students and their families. One of the biggest expenses that families face is the cost of housing. Dorms can be expensive, and renting an apartment can be even more so. However, there is an alternative that many families may not be aware of: buying a home for your college student to live in.

There are many benefits to buying a home for your college student. First, it can save you money. The median rent price for a single-family home in the area around the University of Central Florida (UCF), is $2,500 per month. If you buy a home for your student, you will only have to make a mortgage payment, which could be less than $2,500 per month.

Second, buying a home can give your student more stability. They will not have to move every year, and they will have a place to call their own. This can be especially important for students who are involved in extracurricular activities or who have pets. Depending on your comfort level with your student, they may even be able to get roommates to offset the mortgage costs.

Third, buying a home can be a good investment. The real estate market in Orlando is strong, and the value of your home is likely to increase over time. This means that you could eventually sell the home for a profit at the end of four years.

This should not be taken to mean that there aren’t risks involved in the purchase of a home for your college student to use while away. You will need to make a down payment, and you will be responsible for all of the costs of homeownership, such as property taxes, insurance, and maintenance. However, if you are able to afford the down payment and the monthly payments, buying a home can be a wise financial decision. Think of it as a 4 year CD, only with a better rate of potential return!

If you are considering buying a home for your college student, there are a few things you should keep in mind. First, you will need to make sure that your student is responsible enough to handle the responsibilities of homeownership – this is a huge consideration. They will need to be able to pay their rent (your mortgage) on time, take care of the property, and be respectful of the neighbors.

Second, you will need to choose the right home. The home should be in a safe neighborhood, and it should be large enough for your student to live comfortably. You should also consider the cost of utilities, property taxes, and insurance when making your decision. A REALTOR® with expert knowledge of the areas around UCF and the other college campuses is an invaluable ally in this quest!

If you are considering buying a home for your college student, I encourage you to do your research and talk to a financial advisor. Buying a home can be a great way to save money and give your student a sense of stability.

Here are some additional tips for buying a home for your college student:

• Consider buying a home near the college or university they will be attending. This will give your student easy access to campus and to other students.
• Look for a home that is close to public transportation. This will make it easier for your student to get around without a car. There are a number of great options in the vicinity of UCF, Valencia, and Seminole State.
• Choose a home that is in good condition. This will save you money on repairs and maintenance.
• Get a home inspection before you buy the home – this should happen with any home purchase, but is especially important in this case. This will help you identify any potential problems with the property.

Buying a home for your college student can be a great way to save money (even turn a profit) and give them a sense of stability. However, it is important to do your research and talk to a financial advisor and neighborhood expert REALTOR® (like me) before you make the decision.

This article was originally published on my LinkedIn page on July 11, 2023