College Towns Offer Good Real Estate Investments
When you have a son or daughter attending school, it can make sense to purchase a home or condominium (townhouse or flat) rather than renting an apartment. Although properties near colleges and universities tend to be more expensive than those in other parts of town, they hold their value better and usually show better than average appreciation. Extra rooms can be rented to other students thereby offsetting some of the mortgage payment.
If you are an investor, the stability of a student rental market can keep your property fully occupied all year long. Student enrollment in colleges and universities are expected to rise over 15% during the next 10 years (U.S. Department of Education). Graduate students are expected to increase by 25%.
The high demand for rental housing in college towns will continue to rise with the greater enrollments. Many students begin their college education during the summer and continue straight through all year long reducing vacancies in June, July, and August. This trend has been very evident in Gainesville, Florida. The University of Florida has about 50,000 students and Santa Fe College has about 17,000 students.
NuwireInvestor.com rated Gainesville as the Number 3 small college town for real estate investment. They based this rank on growth potential, job markets, property values, cost of living, atmosphere, retirement appeal, and investment potential. They indicated that the steady stream of students and professors support a good rental market and the well educated population helps the local job market.
Nuwire noted that Gainesville has lower real estate prices than most of the other cities in Florida and its central location half way between Miami and Atlanta is advantageous for investment. Gainesville also attracts many retirees who enjoy the cultural events, sporting events, and educational offerings of a college town.