What did you get as a high-school graduation present? Some jewelry? Some cash? Maybe even a car?
You’d think that in today’s economy, the gifts would get shabbier. But a few high school grads are getting bigger presents than they could possibly have expected – not just in spite of widespread economic distress, but because of it.
They’re getting houses. Yes, houses. The recession certainly works in mysterious ways.
According to MarketWire, Coldwell Banker recently published a survey which uncovered an interesting trend and a new demographic of real estate investors: parents of college students. If you think about it, it’s not actually surprising. Anyone who’s ever lived in a dorm knows that on-campus housing can be criminally-expensive – and more often than not, the quality of your actual surroundings isn’t that great. Not only that, but you don’t get much for your money at the end of the year – except maybe the privilege of doing it all over again next fall.
So it’s perfectly logical that parents of college students all over the country started looking at college housing from a new perspective – as an investment. According to CNNMoney.com, nine months or so of room and board at a private or public university costs somewhere between $6K and $8K.
Multiply that by four years and you’re looking at a decent down-payment on a reasonably-priced single-family home. Take into consideration rock-bottom mortgage rates, low home prices, and the possibility of receiving rent from housemates, and you’re looking at a stellar investment.