A wise investment for those with college students

Quite a few of my clients have been parents of University of Arizona college students, looking for housing options other then what's found on the campus itself. When you look at the cost of attending U of A, it runs about $2600 (Spring 2008) for seven credit hours if you're a resident. If you're a non-resident the price jumps to $8200. Ouch! When you think about adding housing costs to that total, it can be downright depressing for some parents. The cost of housing on campus can easily add up to more then the tuition, and apartments located around the university will run a minimum of $500 monthly for approximately 500 square feet of living space.

When you start to evaluate what you'll be spending over a four year period for dorm or apartment costs, it's easy to see why some parents decide to invest in a home for their children to live in while they complete their education. Below is a chart of some of the double occupancy resident halls costs; for the full list of fees visit 2007-2008 Resident Hall Rates

Looking at the chart you'll see that even the least expensive housing costs about $4200 for both Fall and Spring semesters. Parking permit costs start at about $300 annually. The full list of attendance costs can really be overwhelming.

Many parents and students I've worked with decided that instead of throwing money away in temporary housing, they'd invest in a Tucson property, gain equity while it appreciates, and teach their kids about buying and financing a home. Most buy homes with 3-4 bedrooms and find a few room mates to chip in on rent and expenses. Although the real estate market is in a slump everywhere, Tucson's housing market remains stronger then most because we're a destination city. We continue to grow rapidly due to the influx of retirees and college students. Our city also draws in a large number of workers that relocate here to work at any one of Tucson's top employers including Raytheon Missile Systems, Tucson Unified School District, Honeywell Aerospace and Carondelet Health Network. This constant growth brings more home buyers to Tucson, and resulted in a 68% increase in home prices since 2000. Home inventory in Central Tucson is high right now, with over 1000 properties available. It's a great time to take advantage of competitive pricing and sellers that are willing to negotiate!