Financial pros and cons of buying their college student an off-campus home

Pros and Cons: Buying a Property for a College Student

RISMEDIA, Friday, August 26, 2016— There’s no way around it, supporting a college student can be very expensive. Food, books, and most importantly, housing — all add a hefty expense on top of tuition. That's why the idea of purchasing a property for a college student can be a good investment strategy for families and an alternative to paying rent for four years. If you have clients with children going off to college, use this list to help them weigh the financial pros and cons of buying their college student an off-campus home.  

Pros:

• Offers possible tax benefits, appreciation in value, rental income, etc. Educate your clients on the area and demographics of the town in which they're considering a purchase, as well as the current property values and typical rent prices.  
• Provides a stable living situation for their child and helps avoid rising rent prices and security deposits.
• Eliminates any need to pay storage costs for furniture during summer breaks. In addition, they can rent the property out during the summer to make money. 

Cons:

• Creates homeowner costs such as a mortgage, insurance, and repairs. Have your clients determine a budget and create a list of estimated costs.
• Unlikely to turn a profit or even recoup the costs of buying and selling the property after their student graduates (e.g., 3-5 years).
• Must be prepared for the typical "college renter" consequences, i.e., the occasional party trashing, heedless roommate damage, etc. College students don’t have the best reputation when it comes to taking care of properties. Make sure your clients are financially prepared to cover possible repairs.
• Inherent risk: their student could decide to transfer to a different school, or move back home. Make sure your clients have thought about what they would do if something like this happened. 

Give this checklist to your client to help them determine if buying a property for their college student is a good investment.

Your real estate business is bigger than you think. ReferralExchange  matches your clients with 3 great agents and pays you a 25 percent referral fee at closing.

For more information, visit www.referralexchange.com.

• 
• 
• 

Move This, Not That: 10 Items to Get Rid of Before Your Next Move

TIPS & ADVICE / STORY / BY NATALIE WISE ON 13 AUG 2015

Packing Lighter Can Make Your Next Move Simpler

When it comes to moving, deciding what to take with you — and what to leave behind — can be stressful. Spending a little time clearing out dead weight before the move will make settling into your new place much more freeing. Check these 10 areas of your home for items that aren’t worth the square footage in the moving van — or your new home.

1. Dine in

This may seem obvious, but food takes up a lot of space and often gets a bit lost in the moving shuffle. In the weeks before your move, eat anything that isn’t shelf-stable, brand-new or a specialty item. Don’t forget about the perishable foods in the fridge and freezer (steak for dinner, anyone?). Take a break and throw a pantry dinner party with friends who are helping you move.

2. Pass on low-quality furniture

Low-quality furniture, typically made of particle board, is very susceptible to being ripped and chipped in a move. Ask family and friends if they can use any of these pieces or bring them to your local donation center. Upgrade or replace when you get to your new home.

3. Clean closets

Anything old, stained or that no longer fits should go straight into the donation bin. Moving cross-country? Transitioning from a cold climate to Florida will allow you to shed even more weight as you let go of snowsuits and boots that won’t be of use in the Everglades. Donate to a local thrift store or have a garage sale to make extra cash.

4. Tame the bathroom cabinet

There is no sense moving 20 crusty nail polishes and every curling mousse you’ve ever tried and abandoned. Anything expired or unused lately should be tossed. Cull these and only keep your essentials, as anything else may spill in transit and many are flammable.

5. Make a pitcher of margaritas

While you’re throwing your pantry party, be sure to bring out the open bottles of alcohol. Chances are they’re in glass, making them a no-no for most moves, so you might as well enjoy them now.

6. Burn those candles

This may sound odd, but many moving companies won’t take candles. They’ll most likely melt and get misshapen anyway, so give these to friends or use them as décor at your clean-out party.

7. Donate excess kids’ toys

Toys take up a massive amount of space, even if they are lightweight. Anything that has been outgrown or unused should be donated or passed along to friends or family. Bigger items such as outdoor pools, sports equipment and bicycles should also be assessed.

8. Toss old linens

Sheets and towels are bulky to move, so anything that’s seen better days should be put in the donate pile. Choosing fresh sheets and towels after you’ve moved is a fun part of feeling settled in your new home.

9. Clear out garage clutter

This includes outdoor furniture, hoses, planters and trash cans. With garden items, it’s best to start new instead of moving a potentially invasive weed or insect species to a new area. Outdoor furniture often has glass, which is easily shattered, and flimsy outdoor fabric, which is easily torn in a move. Try selling these pieces and using the cash for a new set.

10. Hobby supplies

Excessive amounts of craft or hobby supplies are often not worth the space. Use this as a time to freshen things up and pare down your supply stash. Bonus? An excuse to buy new supplies in the future.

Once you’ve tamed these 10 areas, you should be able to breathe a little easier and pack a little lighter. You’ll be left with high-quality furniture, sentimental pieces and daily-use items, all things that help make a house a home.

Summer Vacation Time? 8 Tips for a Financially Sane Vacation

8 Tips for a Financially Sane Vacation

By Donna Freedman on July 14, 2015 Money Talk News

Photo (cc) by ratulm

Have you taken your summer vacation yet? Or has your vacation taken you?

Some people travel on autopilot. You cart the kids off to Disneyland because you’re supposed to? Or, you fly to Europe because everyone says you should see Paris before you die.

But what do you want?

“Most of us don’t take the time to think about what would make us happier — what kind of vacation would be relaxing, would recharge our batteries, would be a great time with family,” says Donna Skeels Cygan, a Certified Financial Planner and author of “The Joy of Financial Security.”

Cygan suggests having a “values talk” with your spouse and/or family before planning a vacation. Clarify what everyone expects: Adventure? Relaxation? Roller coasters?

The same holds true for singles. Ask yourself what kind of vacation fits your personality instead of listening to everyone else’s preferences.

The trip you want could be well within reach. Whether it’s a staycation or atrip to Sicily, use these tips to cut costs.

1. Book smart when flying or renting a car

There is no need to pay full freight when you fly, thanks to websites likeTripAdvisor, Expedia and CheapOair.

You also can learn more about cutting flight costs by reading “12 Ways to Land Cheaper Airfare.”

Plan to rent a car? Use discount travel websites, and check your auto insurance to see if you can decline additional coverage on the rental car.

If you need a vehicle for just a day or two and the quoted rate is exorbitant, rent a pickup from U-Haul for $19.95 a day.

A car-sharing service like CityCarShare will let you rent for only a few hours. Some rental agencies, including Enterprise and Hertz, also have gotten into the sharing business.

For more tips on getting around, see “On Your Dream Trip? You Don’t Need a Rental Car.”