Seeing your child grow up and head off to university is one of the proudest moments there is. Receiving an acceptance letter at one of Canada’s reputable institutions is no easy feat, but all that hard work has paid off. When relocating to attend the University of Guelph, your child will need to find accommodations. This can be challenging since housing in Guelph is in high demand and vacancies can be tough to come by.
That’s why some parents of university-aged students are looking into buying a home as an alternative path. If this is something you are considering, this guide will help you make the most of any opportunities that come your way. We’ll start by reviewing a few of the many advantages of buying an investment property.
Security and Peace of Mind
Guelph real estate is always an excellent investment, now and for the long term. For a student, it brings peace of mind that they have a place to go during their school years. This alone can take a world of stress off of their shoulders – and yours.
Some landlords will allow a month-by-month contract, but most will require a one year lease. Students who return home for the summer can find themselves in a dilemma where they still need to pay rent each month even though their unit is vacant. Subletting might be an option, but finding someone who wants to rent for the short term during the off season isn’t necessarily easy.
If you’re on a month to month lease, you could give your notice and let go of the unit when the school year is over. However, you may be hard-pressed to get it back again due to the intense competition for rental housing in Guelph.
When you own the property, you are not at the mercy of the landlord and there are no lease terms to worry about. Whether you stay for the summer or take a few months off, you can rest assured that your home is ready and waiting for your return.
Looking for tips on finding your first home? The resources below are a great place to start:
- The Ultimate Guide for First-Time Buyers in Guelph
- What’s the Fastest Path From Broke Student to Homeowner?
- Real Estate 101 for First-Time Buyers
Decreased Cost of Living
Housing prices have trended up over the last few years, but the increase pales in comparison with the rising cost of rent. Accommodations represent one of the most significant costs of going to school, which can be as much or more than tuition itself if you live off campus.
Buying a house also involves a significant financial outlay; however, it’s not money that is lost forever. Paying down a mortgage builds equity, and you can often recoup your investment and then some by selling the property after graduation. In addition, landlords are permitted to raise the rent each year, but your mortgage payments will be locked in if you choose a fixed term. You can reduce your monthly expenses even further by bringing in a roommate or two to share in all of the costs.
Financial Benefits
What if you could actually earn money each month instead of paying the astronomical cost of renting in Guelph? If you buy a house with multiple bedrooms, you have the possibility of renting out space to fellow students. With the current shortage of purpose-built rentals in Guelph, this option is more than feasible. You could potentially generate a positive cash flow, depending on your carrying costs and how much the market will bear in rent.
There aren’t many university students who “get paid” to live and attend school, but with the right investment opportunity, your child could be one of them! The monetary benefits don’t end there, either. Owning a home gives your child an excellent head start in the financial world because they will begin building equity while they are young. The more Guelph real estate grows in value (and it will) the more financially secure your child will become.
They still have options after school is over and they prepare to enter the real world. If housing prices have risen dramatically, you could sell the home and earn back all, or most, of the costs of university, allowing your child to graduate with minimal debt. In the best case scenario, they could end up with a healthy nest egg in their bank account even as they start their career.
Real World Learning
What better way to prepare your child for adulthood than becoming a homeowner and landlord at a young age? They could take every financial course under the sun, but nothing will beat this hands-on learning experience. Your child will learn how to manage the property, negotiate with tenants, resolve conflicts, and collect rental payments on a regular basis.
As a parent, you share in any equity gains if your name is also on the title. As an added bonus, you don’t have to pay a property manager. Buying a student rental can be a win-win situation all around.
Do you want to know more about the benefits of investing in Guelph real estate? The posts below will give you some ideas:
- Five Best Cities in Ontario to Buy Recession-Proof Investment Properties
- How An Experienced Guelph Real Estate Team Can Help With Your Investments
- A Complete Guide to Real Estate Investing in Guelph
Why Guelph?
Guelph’s strong rental and real estate market can help to support your family for decades to come. As one of the fastest growing regions in all of Canada, the increased population will continue to drive our housing prices and rental prices up. Now is an ideal time to get into the market if possible.
Guelph is also consistently ranked one of the top cities to invest in and live in. Many parents will decide to hold onto their rental property well after their kids finish school. You can continue to rent it out to incoming students or remodel it into a dream home of your own. You will have many options when that time comes.
Are you ready to begin the search for your ideal home? Our Guelph real estate agents are happy to help you every step of the way. Reach out to info@gowylde.ca or call 519-826-7109 for more information.
