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    WHY BUYING MAKES SENSE...

    First, I will say that buying is not always an option.  My parents struggled to pay the bills each month so a down payment and a second mortgage were not even a consideration.  However, for those parents with financial flexibility, buying a property for your son or daughter makes a lot more sense than renting a dorm or apartment.

    According to College Board statistics, average room and board at a four-year private school is close to $10,000 per year. That’s roughly $40,000 to put a roof over your child's head.  What’s your financial return from this "investment"?  Nada. Zip. Zero.

    For this analysis, let’s take a figure of $70,000 to use as a 20% down payment on a $350,000 property.

    Annual Mortgage = $15,000

    Annual Prop Tax = $9,000

    Insurance = $1,000

    TOTAL INVESTMENT = $25,000 per year

    Next, let’s assume that your son or daughter has two roommates and each of them pays rent of $1,000 per month (this is often cheaper than it would typically cost for them to live in a dorm or apartment) or $24,000 per year.  This means your out of pocket costs would be about $1,000 PER YEAR!

    Compare this with spending anywhere from $1,000 - $1,500 per month for your son or daughter to live in a dorm/apartment and the savings become very obvious.  Let’s assume you pay $1,000 per month for 9 months ($9,000 per year) in housing costs by renting versus $1,000 per year buying a property. 

    That equals $8,000 per year in savings and $16,000 over two years for rent savings alone.  Add in a very conservative 3% annual appreciation and the property value has increased $18,000 (plus a couple thousand in additional paid-down equity).  Factoring in closing costs, your total return over 2 years could be somewhere in the range of $34,000.

    RENT/DORM OPTION (2 Years)                BUY OPTION

    Investment:  $18,000+                                Investment:  $75,000

    Return: $0                                                 Return: $37,000 (excluding down payment)

    It doesn’t make sense financially for every parent but there is a compelling case to be made for purchasing a property for your son and daughter while they attend college.  Contact Us today for a more detailed analysis in your market.

    Note: These figures are for illustrative purposes and will vary depending on market factors.

    TCU AREA NEIGHBORHOODS

    • Tanglewood
    • University West
    • University Place
    • Bluebonnet Place
    • Westcliff
    • Stonegate
    • Berkeley
    • Fairmount
    • Colonial Bellaire
    • Overton Woods
    • Overton West
    • Mistletoe Heights
    • Ryan Place
    • Near Southside
    • Foster Park

    TCU Area Schools

    • Tanglewood
    • Westcliff
    • Lily B Clayton
    • Overton Park
    • Mclean MS
    • Paschal HS
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    Fort Worth, TX 76109
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