It’s the moment you’ve been waiting for all your life – seeing your child off to get a college degree. And with great colleges and universities in the Centennial State like the University of Colorado-Boulder and DeVry University-Colorado in Westminster, you know that your child is destined to get the best education the state can offer.
Apart from the kind of learning institution that will take your child in, there’s another question that comes into mind – what about a place to stay while they are pursuing their degree?
With the abundance of condos for sale in university locales like Boulder and Westminster, CO, the idea of getting them a unit becomes attractive. However, before allotting a substantial portion of your funds into this endeavor, you first have to study and consider several important points:
Your own considerations
Remember that putting your child through college can be very expensive, even if your kid is on a scholarship. The academic requirements alone can floor you financially. Do you think you’re ready for a second investment that could also put the pressure on your pockets?
Granted that a condo is still a good asset to have for the long term, how do you intend to use it when your kid is done with college? Will you let the younger sibs use it for when it’s their turn to go to college? Or do you intend to let your college-age child keep it and probably continue the mortgage payments?
The child’s considerations
This is probably going to be the most important question you have to tackle: Will your child be staying in that locale for their studies up to graduation? It is a known fact that not all students ever complete their studies in one college/university, let alone complete their studies at all.
Even if they decide to stay in that locale and take in roommates as tenants in that condo, will your kid be matured enough to handle the responsibilities of being a student, a landlord, and a teenager all at the same time?
Other financial matters and perks
Just like any other type of real estate, a condo has many other fees to pay on top of its actual price tag. There’s your monthly mortgage payments, homeowners’ association fees, emergency funds for repairs and maintenance, insurance fees, utility bills, and taxes.
But there are some perks to getting your child a condo: it can be considered a second home with attractive tax breaks if you abide by certain requirements. Best to ask your real estate agent about the family opportunity mortgage that offers such benefits and if it is still being offered in Colorado.
Another mortgage to look into is the non-occupying co-borrower loan, more commonly known as the kiddie condo mortgage. This type of FHA loan lets both parent and child apply for a loan. Down payment is much lower and tax breaks are also applicable here. This type of loan allows the child to eventually own a condo with their parent’s financial help.
After weighing all these factors and also asking for a real estate professional’s advice, you’ll be making a smarter decision on whether you should buy your kid a condo for their college life or not. You could reach out to Paul and Kamron, both top-notch Realtors of Colorado real estate, for that much-needed advice. Call them at 720.232.5842 (Paul) or 303.520.3223 (Kamron). You can also send an email to Paulwaz(at)me(dotted)com or Kamronwaz(at)me(dotted)com should you need to elaborate more on your desired real estate goals.