Buying a house for your child is a great way to invest for their future. Especially if they are planning on living in that property while they attend University.
Here are several beneficial aspects towards making this kind of investment:
Stability
The student won’t need to look for a different apartment to live in each year, nor be faced with the distraction of the accommodation culture. Also, you can pick the lifestyle that will help your student succeed in school by choosing the location and the quality of housing that best fits their needs.
Fixed Housing Expenses
In the past, university accommodation expenses typically increases on an annual basis. By purchasing a property with a fixed rate mortgage, your student's housing expense will be fixed. In addition, you won’t have to deal with paying bond deposits or going through the process of getting that deposit back.
Storage Space
Having a single place to live in that you own means your student will not have to worry about storing furniture over the summer break.
Life Lessons
By purchasing a home for your student, you'll be providing them with an excellent learning experience. Your student will not only learn about the process of investing in real estate, but will also learn about the responsibilities that go along with property ownership.
Financial Benefits
Potential financial benefits include possible appreciation in value, possible tax benefits, and debt reduction on a loan that increases equity build-up.
In summary, not only will you be helping your child to be able to save a deposit for a first home of their own, but once you sell the property, you can also reap the benefits of a long term investment. You can put the proceeds buying a house for your child or you can spend them yourself.
That seems like a win-win to us.