An interesting trend is happening across the nation as house prices continue to fall:
Parents are able to pay less for college by buying a house for their offspring versus paying the cost of a typical dorm room. Tuition and costs of buying textbooks, even textbook rentals, is constantly increasing, so parents are seeking any way possible to save money. According to a nation wide survey conducted by Coldwell Banker over 60% of real estate agents have seen an increase in “parent investors” buying homes for their kids.
For instance, in Fresno, CA, parents can buy a home for $150-$180,000 to get a three bedroom two bath home. With three people living in the home, it works out to around $400 per bedroom which is much cheaper than a dorm at $6-$700 at Fresno State. However, this phenomenon is not just limited to CA as parents, that can qualify for a mortgage, would rather their money go into an investment versus a landlord’s pocket.
The current rare combination of low house prices, low interest rates, and a huge inventory of foreclosure and short-sale opportunities have made home ownership much more attractive versus a couple years ago when home prices peaked. One parent split the cost of two bedroom condo with his son who now pays the other half as a mortgage payment to his father. The son could even take on a roommate to cover his mortgage payment to his father, and cover the other related home ownership expenses.
Yes I would. Sit down with your parents. And lay that all down. And tell them to think about it. That they don't have to make a decision right this second. Then leave the papers with them and go to your room while they consider 🙂
With the cost of college tuition today, very few degrees, particularly from private schools, make sense from a cost-benefit standpoint.
Not disputing the high cost in terms of intangibles for attending law school… But the majority of people entering four year schools each year are getting screwed with their pants on, and don't even realize it…