| Investing in College Towns |
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For buyers looking for solid real estate investments in today’s slumping housing market, a trip around local college towns may be the answer. On average, these areas are a little more expensive, but there are enough positive trends to make properties in these areas a good investment. With rising university enrollments and limited space and funds for on-campus housing, students are being forced to find housing elsewhere. This is an advantage for investors looking to get into rental properties. It is not just students that require housing. Professors, also multiplying with the rise in enrollment, require a roof over their heads, as well as other university staff. Not to mention those people who seek to drench themselves in the diverse culture of a college town. It is the snowball effect-colleges bring students, who bring business, who bring jobs, which bring more people and all of them need a place to stay (with the exception of freshman, usually they still have to spend that first year on campus). There are risks to such investments, especially if you are planning on renting to students. Remember, college kids drink, throw huge parties, upset the neighbors, and who knows what else, but they aren’t all known for being quiet studiers with no rowdy friends. For most college students this could be their first rental experience and the lack of supervision goes straight to their heads. Protect your investment by doing thorough reference checks, requiring security deposits and parental guarantees. On the upside, in most cases, multiple students share rentals close to campus. This opens a door for property owners to get a higher return on investment, by collecting more rent for multi-bedroom houses or duplexes. Not all college towns offer smart investments. Research. It is important to identify colleges and universities with larger enrollments and a shortage of on campus housing, but in most public college areas the housing market is remaining stable through tough times allowing you the opportunity to make a smart investment.
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