College is expensive, and the prices of tuition and books continue to rise every year. And, one item that often gets overlooked is the price of renting an apartment. However, there is a way to turn this issue into a positive one. Parents with students attending UC Berkeley can invest in real estate together and provide a safe, clean place for their kids and save on taxes.
While many colleges and universities in California require students to live in on-campus dormitories during their Freshman year , most students live in nearby off-campus housing the rest of their college careers. Of course, there are drawbacks to such arrangements.
Most rental properties in college towns are either overpriced or are substandard. Plus, renting is a lost opportunity for future equity as opposed to owning a property. All that money goes to a landlord each month and there is nothing to show for it once the student graduates. In many cases, the kids don’t even get their deposits back. Studies show that rent payments for apartments of college-aged adults total around $24,000 per year – which is almost $100,000 over a four-year period!
Real estate co-ownership makes a great deal of sense for families that would prefer to invest that money. By choosing to invest together, parents and children will both benefit. The student will have an opportunity to live in a clean and well-maintained home and have an ownership stake in the property. Once college is over, the apartment can be sold for a profit, or held as a rental property.
Of course, this is just the tip of the iceberg.
To learn more about the benefits of real estate co-ownership in the Berkeley, California area, join the Realtaasa network and visit Realtaasa.
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