YOUR MONEY College Housing As An Investment -_ (NAPSA)—When it comes to getting a better grade in real estate return, many investors are putting their money in higher education. They are investing in real estate in college towns. College towns that are not close to large cities are a smart and sensible investment choice for several reasons. First, the prices of housing are lower since the towns are not close enough for commuters. Because college students often want to live off campus, there is a high demand for college-area real estate. If a student wants to live off campus and parents have to pay rent for that child, they may find it more profitable to invest in real estate that their child can live in for the duration of his or hercollege career. Housing costs for a college student can average between $20,000 and $40,000 through four years of college. If parents have to spend this much money, a growing number find they could better use the money as a down payment on a property that will offer them a return on their investment. If parents buy property with multiple rental units or a property that can be shared, it may ultimately cost less than paying rent for a single apartment for their college student. “Real estate continues to be an outstanding long-term wealth generator and nowis an outstanding timeto buy,” said Tom Kunz, president and chief executive officer, Century 21 Real Estate LLC. Many parents are finding that buying real estate in a college town can be an investment with a sizable return. Investing in college housingis a low-risk venture since thefirst and last months’ rent is normally requested before anyone moves in. And a security deposit can be as high as one and a half months’ rent. The home can be sold once the child graduates college or kept as an investment. For many parents, this investment compares favorably with CDs, which pay out 3 percent, and the increasingly intimidating and volatile stock market. Financial analysis reveals that at manycolleges it’s possible to make a down payment of $40,000 and receive a return of up to $20,000 per year, after paying off the mortgage expenses, and secure a capitalization rate of over 10 percent. For more information on college-town real estate investment, visit www.Century21.com.
