Home » Real Estate » 4 Big Reasons to Invest in College Town Real Estate

Do you feel lucky? Well, do you?

That infamous one-liner from the cinematic classic Dirty Harry. Lifes a gamble, whether you’re a crime-fighting cop like Clint Eastwood or just your regular old Bob, Beth, or Beatrice trying to get by. Chance and risk are everywhere, but smart thinking and informed decision making can help luck work for you rather than against you.

Nothing could be truer than in the area of real estate. Equal parts unpredictable probability and prepared foresight, investing in real estate relies on whats typically called controllable risk. In other words, research can be conducted, predictions can be made, chances can be analyzed, but what actually happens, whether the market rises of falls, is ultimately an unknown.

So why take the chance at all? The reward, of course! The greater the risk, the greater the reward. That’s not to say you should bet your entire life savings on the Mega-Millions Super Lottery, but opt instead for an investment opportunity that offers a little of that controlled risk, such as that of the property market.

One great option to look into in specific is that of purchasing college town real estate, and here’s why.

  1. The Lingering Effects of the Financial Crisis Make Home Ownership Affordable

Remember that big old recession that rocked our financial backbone and ransacked our bank accounts in the early part of the 2000s? Well even though were in a far better state then we were ten years ago, the wake of that major financial crisis can still be felt. The housing market continues to recover, which means prices for potential homeowners are more affordable now than they’ve been.

  1. The Demand for a College Education is on the Rise.

You don’t have to have a degree to know the immense value in obtaining one. Having a college education is no longer an admirable attribute in today’s professional world, it’s a necessary requirement. As such, more and more young adults are going to college and pursuing advanced degrees. More aspiring students and applicants means big business for all universities, from Loyola Marymount University in Los Angeles to the likes of Vermont’s environmental law program on the opposite coast. It also means big business for college towns, including tenants and landlords. Investing in real estate, especially rental properties, offers promising returns as more students go off to school and rent prices continue to climb.

  1. On-campus Housing is Expensive

Investing in college town real estate is a smart idea, even more so if you are the parent of or are yourself a college student. Why? Because by opting to live off-campus in your own home or condo, you and/or your student bypass the extreme expense of four-plus years spent living in the dorms. As small and shoddy as those dorm units are, they come with a hefty price tag. On average, students spend a minimum of $10,000 per year for on-campus housing, and for some, nearly $100,000 for all four years and that’s before tuition! No dorms mean no dorm expense.

  1. Most Break Even, but Some Make it Big

For many, university-adjacent home owning and particularly investing in the purchase of rental real estate in college towns, starts as merely a means by which to avoid the added expenses of student housing. Typically, those who pursue this type of investment end up breaking even, making no lonely but at the same time losing no money. This in and of itself is a highly preferably option when considering how much it costs to live on campus. By not losing money, those that break even save money. Yet for some, what begins as a money saving scheme eventually becomes a money making scheme as the market evolves and rent rates rise.

So again, do you feel lucky?