Our son will be attending UT this fall and we live in Missouri. We are interested in obtaining in-state

Asked by Ron, Missouri Sun Feb 22, 2009

residency by purchasing real estate for him to live in while he attends college. However, we are unfamiliar with the real estate market there and am wondering if you recommend purchasing a singe family house or a condo for him? Are there safe areas relatively close to UT campus that we can re-sell 4-5 years later and hold our money together?

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Josh Thomas, , Austin, TX
Sun Feb 22, 2009
Hi Ron,
From experience, it is not very easy to establish residency in that amount of time. I moved here from out of state with my wife in 2003 when she was still in college. She actually had to take a year off from school while we established residency. Needless to say, that was a tough year for her (and me).

If I remember correctly, it was something like 6-9 months that he must live here (This is only if he is independent). Also, if the primary reason that he is coming to Texas is for school, they will know. The only way to establish residency this quickly to my knowledge is for him to receive a Texas HS diploma and for YOU to move down here as well. This is probably not in your gameplan.

This is what happened to us 6 years ago. Even being married and completely independent from her parents wasn't enough.

As you have read below, there are very few bad investments when looking near campus due to their demand and "rentability". But, if your primary reason for buying is to establish residency, I don't think it will work in this situation.

Consider this:
Even an average condo purchase near campus is going to be relatively expensive compared to the rent you might pay. The difference between rent and mortgage may offset the tuition increase. I don't know the exact tuition for UT these days, but I assume it is somewhere around $4,000 per semester or $8,000 per year (or $666 per month).

If out of state tuition is about 3 X that amount or $24,000 per year (usually the case), the difference is $16,000. When you break that up monthly, you get a difference of $1,333.

You can rent a decent place near campus for around $600 per month. But a comparable purchase would run you around $200k. The monthly payments on such a loan assuming 5% down and 5% interest would be about $1,550 depending on taxes and HOA fees.

So let's compare:
Out-of-state tuition + rent = $2,599 per month
In-state tuition + mortgage = $2,216 per month

Certainly, there's a difference, but not quite as big once you consider all angles. You can buy cheaper condos but they are VERY small and most of them have been on the market for quite a while.

This all may be a moot point if you cannot establish residency. But, hopefully it can at least help put a few things in perspective for you.

Good luck, Ron. I hope it works out for you.
1 vote
Susan Avant, Agent, Austin, TX
Sun Feb 22, 2009
Ron,

SInce your son was admitted to UT with out-of -state resisdency he will need to get a change of status, and it's difficult. Just buying a condo will not qualify for in state tuition, even if it is in your sons name. He will need to go to this website and apply for residency: http://www.admissions.txstate.edu/future/residency.html If he has not lived here, or is still claimed as a dependent you will most likely not be able to get in state tuition. 12 months of independent living is traditionally the minimun requirement at UT. I suggest he apply and hope for the best.

That being said, there are many wonderful places to buy close to UT, if your son is new to town & doesn't know anyone I would suggest a condo complex with a pool so he can meet other students. Another alternative is to rent, meet friends & buy something after the first semester or first year. If he chooses to join a fraternity, he may end up living in the house his sophmore year, or sharing a house with others.

Both of my children went out of state to school, and it is almost impossible to know where they will want to live until they have had a chance to get familiar with the area. Austin is no exception, there are many places to live that are close to campus, West Campus, North Campus, south of the drag,etc.

Best of luck. If you decide to rent, I will be happy to refer you to a good campus leasing agent. If you have other questions about buying, feel free to contact me. 512-917-9936 or susanavant@aveone.com
Web Reference:  http://www.SusanAvant.com
1 vote
Buyers House…, , Texas
Mon Feb 23, 2009
I did a little more research about your question. Here is some FAQ about UT residency.
0 votes
Jeff Kessler, Agent, Austin, TX
Mon Feb 23, 2009
I have been selling condos in the UT area for over 11 years. Actually for the first 4 years of my career that is where I specialized.
If you need any help.
Please email or call me.
Have a great week.
Jeff
0 votes
Buyers House…, , Texas
Sun Feb 22, 2009
It seems as though you answer has been addressed. Visit us on the web at http://www.BuyersHouseRealty.com
We specialize with working with savvy online buyers looking to purchase property on the UT campus. You should focus on 78705 zip code. I believe properties around UT are great investments, and purchasing a new condo may keep up keep charges down. Also, keep in mind the we reward the buyer 75% of our commission for purchaing a home using our services.

Regards,

Gavin St.Louis
Texas Managing Broker
Buyers House Realty
"Showing You The Rebate"
0 votes
Betina Forem…, Agent, Austin, TX
Sun Feb 22, 2009
There are absolutely condos that can be purchased close to UT. In my opinion buying is much smarter than renting for four years. The UT area holds its value very well and has seen solid appreciation. I have sold condos to parents that were initially looking to lease for this very reason. If you want specifics on current prices on this type property just give me a call or send me an email. You may search currently available property on my website listed below. I look forward to the opportunity to earn your business.
Sincerely,
Betina Foreman, Realtor
Keller Williams Real Estate
0 votes
Dana Schuster, Agent, Slidell, LA
Sun Feb 22, 2009
Thumbs up from me,Susan and Josh for two really thorough helpful answers!
0 votes
Tim Moncrief, , Austin, TX
Sun Feb 22, 2009
Even garbage around the UT area is good because of Location....Location....Location.... This is a no brainer. Condo financing is a challenge NOW, but can be achieved. In time when all the mortgage mess clears up, it will be fine. Because of the condo financing problems, deals can be made better now until financing improves.....in a year or so. 2009 will be an ideal time to buy. Note that Austin has gone through a downfall in 2001-2004.....so we have already taken a strong hit and will likely not get harmed like the rest of the country. This year will be a challenging year, but thereafter you will be in great shape....hopefully.

It is the old rule of location. UT is not going away anytime soon.......
Web Reference:  http://TopKWGroup.com
0 votes
Richard Haen…, Agent, Austin, TX
Sun Feb 22, 2009
Ron: great decision. I have helped many families with this type of investment.

I would be glad to pull together some ut options for you to review. There are many great choices.

This is one of my focus areas and would love to help your family.

Please let me know the best way to contact you.

Thanks
Ritch Haenke
Rhaenke@sbcglobal.net
512.633.3909
http://www.richardhaenke.com
Web Reference:  http://www.richardhaenke.com
0 votes
Anita Dallas, Agent, Austin, TX
Sun Feb 22, 2009
Hi,
Congratulations to your son for becoming a Longhorn!

You should check on what is required to establish residency here in Texas for the purpose of qualifying for In-State Tuition rates.

There is quite a bit of housing in and around the UT area that is popular with UT students, faculty and also very desirable by other Austin residents. Real estate values in the UT/North Campus/Hyde Park area are known for holding/appreciating in value quite nicely.

We specialize in the UT area and are located in the North Campus area. Please feel free to contact me or go to our web site if you would like to see how I can be of service to you.
Web Reference:  http://habitathunters.com
0 votes
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