If you’re a college or university student living away from home, you may be considering buying a home instead of renting. There are many benefits to owning a home, but also many things to consider before you take that leap. 

A home is a big investment, so you want to make sure you do your research before committing to a mortgage and everything else home ownership entails. These are a few things to consider if you’re thinking about buying a home while attending a post-secondary institution.

The Pros of Home Ownership for Students

  • You'll have a stable place to live throughout your studies. One of the hardest things about moving away from home is finding a suitable place to live. Many colleges have waitlists for student housing. In addition, searching for apartments can be stressful.When you buy a home, you have a stable place to live for as long as you like.
  • Your mortgage payments may be the same as rent. With rents skyrocketing across the country, you may find that your mortgage payments are similar to what you would be paying in rent. If that’s the case, it makes sense to pay yourself rather than someone else.
  • You can build equity. The more you pay into your home, the more equity you have. You can also gain equity if your home’s market value increases. That equity can be used to upgrade to a larger home at some point in the future or to borrow against if you need money. 
  • You can use the home as a rental property. One of the best things about buying property in a college town is that there will always be students looking for housing. For example, there are over 2,100 students enrolled in the College of the Rockies each year, many of whom want to live off-campus. The rent from tenants can help offset your mortgage and other costs.

The Cons of Home Ownership for Students

  • Getting approved for a loan can be challenging. To be approved for a mortgage you will need to show proof of employment or income, a down payment, a good credit score and proof of your financial situation. This can be tricky for students who are not working or those who haven’t built up a strong financial standing.
  • The costs may be prohibitive. There are more costs associated with buying a home than just your mortgage payments. You will also have to pay for home insurance, property taxes, and any maintenance costs. In addition, you will have to come up with the down payment for your home.
  • You may have to move after graduation. As a new graduate entering the workforce for the first time, you may not get to pick and choose where you live. In fact, many students relocate to new cities and towns after university for jobs. You may find yourself paying a mortgage on a house you aren’t living in. 

How a Local REALTOR® Can Help

The best way to determine whether buying a home is a good option for you is to speak to a local real estate professional. An experienced REALTOR® can provide you with valuable information on housing prices and costs, the ideal neighbourhoods for students, and what to expect from the market in the future.  

A real estate agent can also help you with financing options. They can help you put together a budget and discuss options that may be available to you, such as a first-time home buyer loan. This can save you a great deal of money, not to mention energy and time.

If you’re ready to invest in a home, condo, or property in the Columbia Valley, we’re here to help! Contact Century 21 Rockies Realty to get started today!

Posted by Scott Sauermann on
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