Photo courtesy of Pexels.

Moving into your dorm room is one of the most exciting parts of starting college. But after a year (or two) of living in a small room with another person and no privacy, you’re probably ready to have your own space.

While you may have plenty of options for off-campus housing, you may not be thrilled at the prospect of renting a room in an apartment shared with strangers or having a less-than-great landlord. But what about pooling your resources together with a few trusted friends and buying a house to live in?

Benefits of Buying a House

Purchasing a house may seem impossible, as purchasing a house can be costly and saving money as a college student can be difficult. However, financial help from family members or friends can make buying a home more affordable, and owning a house may actually be a way that you can save or possibly make money. Here are a few reasons why students should consider owning a home, rather than paying for a rental, while still in college:

• Over time, it’s less expensive than renting. Between a down payment, insurance, and property taxes, home ownership may not seem like a more affordable option than renting. But as time passes, you can spend just as much money paying your monthly rent as you would on a home.

• Owning a home is an investment, and in a college town, it’s probable that you’ll see a return on that investment. A home that is close to a college will be desirable to other students. Even if one of your roommates moves out or you move somewhere else after college, there will be other students who are looking for off-campus housing.

• You can be your own landlord. You won’t have to worry about dealing with a landlord’s rules because you set them yourself. Whether you prefer a clean, minimalist look or enjoy a healthy amount of clutter, you can decorate the house however you like. You can hang things on the walls, make updates to the house as you see fit, or even get a pet.

The Benefits of Renting a House

Of course, on the other hand, there are a few drawbacks to college students purchasing a house. For some students, renting may be a better option. There are a few advantages, including:

• When you rent a house, you won’t be tied down to a particular place. If you decide you need to get away from your roommates or move to another location after school, you don’t have to worry about selling your home before you leave.

• As a tenant, it’s not your responsibility to take care of any repairs or home maintenance. If something is damaged or broken, your landlord is required to either fix the issue themselves or hire someone to do it.

• Because you don’t have to make a down payment, renting is less costly upfront. Your monthly rent payments may also be less expensive than that of a mortgage, which can help you save money for school expenses or a down payment in the future. In addition, if you decide to purchase a house with a group of friends and those relationships go sour, renting is a much small financial obligation than a mortgage — and defaulting on a mortgage payment during college could harm your financial future for years to come.

While buying a house may work best for some, other students may prefer to rent while completing their degrees. You simply have to consider your own needs and find housing that best suits your lifestyle.

###
October 7, 2018