If your child goes away to college, consider buying a house near the campus. Possible benefits: cost savings, tax breaks, profit potential, and providing your student with a pleasant place to live.
Pick the property carefully so that it probably will hold its value or even appreciate. Look for a house within walking distance of campus, which will make it easier to rent. Consider buying a home with three or more bedrooms so you can collect rental income from other students while your child is in college.
Ongoing rental income may enable you to hold on to the property after your child graduates. In case of a weak real estate market, you can rent the property for a while, until there’s an upturn. Even if you never make a profit, though, investing in near-campus housing may help you save many thousands of dollars you’d otherwise spend on your student’s room and board.
