Home Buying in 91011>Question Details

Jim, Home Buyer in 91011

Is there any sence in purchasing a property near the UC Berkeley Campus for 4 years while my son is n college?

Asked by Jim, 91011 Sun May 10, 2009

In light of current market conditions, I am wondering if it makes sence to buy a place for my son to live for 4 years rather than renting. The place needs to be in some proximity to the college campus.

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Answers

3
Fran and Rowena’s answer
Hello Jim,

We have many clients who ask that same question. Indeed, it might make sense in this economy.

There is another reason to consider buying, and that is because of lack of on-campus housing for students at U.C. Berkeley. This would make your son's housing needs settled for the four years, and you would not have to do the annual stress-producing task of locating housing for the subsequent school year. Plus, your son would not have to relocate annually.

Does it make financial sense? You might want to consult with your financial/tax advisor.

If you need a realtor in the area surrounding U.C. Berkeley, please let us know and we can arrange for a realtor to assist you.

With best regards,
Fran and Rowena
0 votes Thank Flag Link Sat May 23, 2009
It makes sense if the mortgage payments are less than the cost to rent a comparable property. The best way to go about doing this is to buy a bigger unit 2 bedrooms or more and rent out the spare ones to college kids. That can help cover some of the mortgage. In some cases your son may be able to get 2 or 3 roommates and cover the entire mortgage payment and essentially live for free. In general property near college campuses tend to be great investments. Ultimately it comes down to the numbers and whether it makes financial sense.

Good luck

Ron Miller
http://www.buyrenter.com
1 vote Thank Flag Link Fri May 22, 2009
Hi Ron. My friend Brian lived in a home that his friend's dad purchased for their time at UC DAVIS. And the rent more than covered the mortgage. When they graduated 5 years later, and the father sold the home, he doubled his initial investment. This was in 1998 to 2003, so you should consider the market that we are in now. If you can afford to hold on to it for 10-15 years, it would be worth it. Best of luck. -Monica
0 votes Thank Flag Link Wed Jan 29, 2014
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