January 28, 2014

Investing in College Towns:

The economic stability associated with higher learning institutions has helped college real estate markets hold up well during the past housing slide. Real estate markets with major colleges or universities have out performed similar markets without a university. Markets with a major university and a state capital have traditionally out performed those without.

College cities are also attracting retirees that will further stabilize the market.

Real estate investors should start investigating in college markets for stable and low risk investments.

WHY INVEST IN A STUDENT CONDO?

Investing, in a condo that is rented to students can often provide significant cash flow and appreciation opportunities especially if the university is located in a market with a state capital. Traditionally the leases are co-signed by the parents. These often require significant security deposits that reduce the risks. Since most colleges are suffering budget constraints, they are looking to the private sector to provide student housing—adds to the appreciation factor.

As an investor, if you are seeking a stable and low risk investment, investigate investing in a condo leased to students in a college town with a state capital.