Many parents fork out huge amounts in rent during their children’s university years. However, a smart alternative can be to buy an investment property in the relevant university town instead. Although buy-to-let is usually seen as a long-term investment, the rent received from rooms let out to your child’s student friends during their degree years can often cover any mortgage payments and your own child might effectively stay there rent free! It’s also good to know that your child can choose their co-tenants!
Following university, these investments are in constant demand from other parents in a similar position. Interestingly, due to continual demand for student accommodation, many parent landlords subsequently decide to keep the property following graduation day as a long-term investment.
Aside from the student opportunity, other parents buy an investment property and rent it to their children at an affordable discount until such time as the child can afford a place of their own. They could alternatively switch from paying rent to covering the mortgage payments instead - what better way to help them responsibly manage their way onto the property ladder?
A number of grandparents have also recognised that an investment property also makes a great children’s investment from birth, providing them with a “free home” when they reach say 18 or 21.
If you fall into any of these categories, please feel free to contact us on 01322 228090 for helpful strategic advice on how best to take advantage of the opportunities on offer for the generous/smart parent!