This morning I read an article in a local Tucson paper – a new student housing project will be completed by the Fall of 2016 near the University of Arizona. It will be beautiful with lots of amenities the article boosts! Then the quick, few word sentence – the rent price per bedroom (yes per bedroom!) will range from $525 to $1600 a month.
Very quickly, I ran some comps in the area for 2 bedroom/2 baths – up to 3 bedroom/2 bath condos, townhomes and houses within a 2 mile radius of the UA.
To the left is just a small sample of over 52 listings on the market just in this small area. All but one of these are 3 bedroom, 2 baths, one is a 3/3 - nice units, very affordable, near bus, bike paths, stores, and, the University of Arizona.
Doing another quick online calculation - with the current interest rate and 10% down on a 150,000 loan - roughly the mortgage is $800 a month.
Without a doubt - a 3 bedroom home in the UA area would rent for $800 and more per month. One or two students living in the home would easily cover the mortgage and at college graduation - you as a parent would have two wonderful options - keep the home as an investment and rent to other college students - or sell the home at potentially a higher value than what you paid for it.
So let's see, rent a bedroom for your student at $1600 a month - or buy a home and pay the $800 a month mortgage?
This blog is written with my opinions and my opinions are presented with accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions. Gabrielle Kamahele Rhind - 2014. If you want to reprint parts of this - just email me for my permission: KGCProperties@gmail.com .