Yes.
Buying property does seem to help get one in state tution.
But looking at the rates in Austin these days , we are in a dilema.
Youâd be hard pressed to find anything to buy in Austin, that would be less than OOS tuition. Real estate is SKY HIGH.
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Some majors at UIUC are very difficult to change into. Examples include anything CS related: Transfer Students | Computer Science | UIUC
Yes definitely difficult to switch to CS at UIUC but not impossible, especially if in the CS+ majors whereas at UT itâs virtually impossible to switch to CS even if going from College of Engineering.
UIUC also has CS in Liberal Arts as CS+ as well as Engineering whereas as referenced previously UT doesnât. Poster only mentioned Engineering between the two schools so that seems to imply theyâre into Engineering not CS since CS is not in Engineering at UT hence Illinois for Engineering would be a better fit unless the person is looking to be in a bigger city and/or better weather.
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Also, U Utah is excellent for engineering. Plus they will give merit money based upon studentâs GPA from the previous semester. A student can become in-state after one year, if they do whatâs necessary right upon arrival. https://admissions.utah.edu/information-resources/residency/residency-faqs/
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The idea is to buy and then flip it a year later. It will more than pay for itself. Or, many people also just have their students live in the properties they buy since the mortgages are about what rent might be since most students live off campus anyway since housing isnât guaranteed.
I have 3 kids in college right now (although one graduated in December but wants to walk with their class so still living in the apartment) and while Austin is pricy itâs less expensive than Ann Arbor which is insane considering the amenities are way better!
We will be selling our condo and in less than 4 years should be able to turn at least 25% profit so thatâs in addition to the tuition savings for 3-1/2 years plus summer tuition plus the monthly rent. The only reason not to do it is truly if someone canât afford it but if someone canât pay the cash then aim for getting a mortgage. My LHD wouldâve qualified for a mortgage but then we decided to pay cash instead of having her take a mortgage. I wouldâve spent the money on tuition instead I spent less on a condo.
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However, Iâve seen merit money awarded subsequently, based upon the studentâs performance at the U of Utah.
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He is admitted in Electrical engineering and I donât think he will change at least thatâs what he says. But ya , we never know.
But switching major flexibility is not our concern especially into CS .
We will be calling UT residency department and check with them once we have the financial award letters.
And take a decision accordingly.
You all have been really helpful.
Thank you
I remember a LOT of people who were on the âbuy and flipâ plan in metro Boston when their kids were students there.
Nobody recalls 2008-2009 when property in Boston declined about 25% in value in about a month? And took years to recover?
I am leery of the âweâll buy it and flip itâ plan unless you can truly afford to sell at a loss, or donât mind holding the property and becoming a long term landlord.
Boston seemed like such a sure thing- SO many college students, rents SO high, easy to buy, easy to flip. Until it wasnât. And insurers (the big ones) declined to write policies (and were cancelling policies left and right) on unoccupied properties. So you HAD to get another tenant, even if you wanted to wait it out and were tired of the âmy sink is cloggedâ phone calls at midnight, from someone elseâs college kid.
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Agree with @blossom. We know a few people who bought condos for their kids in college between 2006-2010. Their kids lived there and they rented out the remaining rooms. It was a great dealâŠ.until their kids graduated, and they could not sell these things. No one wanted to be a landlord. Every single one sold but it took a while, and no one made a cent on their âinvestmentâ.
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Itâs a HUGE RISK with zero guarantee - and in an inflated price environment.
Iâm risk averse but is a college really worth that risk? A state school at that when there are so many great ones.
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I know two people who bought condos for their kids in college (not for residency purposes but just to give their kids a nice place to live). Both ended up losing money when they went to re-sell.
We have family in Austin. Prices have gone crazy since Covid but they are already leveling back off with the higher interest rates. IMO, this would be a very, very risky time to buy.
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Definitely there is a risk of loosing money in the current scenario.
Will surely keep that in mind, if we do decide.
But for now waiting for financials and few other decisions.
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One of my kids moved into a dorm room on the Friday before Labor Day. I showed up on Sunday with the stuff (kid had just a suitcase). I noticed a broken window lock (like someone had tried to break in from the outside), called the Dean of Housing, expecting no reply until Tuesday. (told the kid to bunk with a friend in the meantime). Half an hour later as we were still unpacking, University maintenance showed up to repair the lock, asked if there was anything else amiss.
I know dorms are expensive. But do YOU want to be the team (the Dean of Housing AND the maintenance person) dealing with this stuff on a holiday weekend from overseas??? Owning property in a place you donât live in, subject to both the normal wear and tear from having students living there AND protecting the property is a lot more time consuming and expensive than most folks realize.
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Yup. Recall it well. The one person I know who was successful at this bought a condo in Back Bay and held it. Wasnât difficult to rent it, but it isnât a typical student rental area - a little too far from many of the schools and very pricy (even by Boston standards).
Aaah, Back Bay. Buy and Hold is a safe strategy there.
Iâm talking Brighton (midway between BC and BU), Allston, Somerville, and the neighborhoods near-ish to Northeastern⊠These seemed like âcanât loseâ investments in 2006/7 when prices were going up overnight. Until they started going downâŠ
I had a kid living in Boston at the time. Got regular phone calls âDonât you want to buy our place for your kid?â No. My kid will or will not buy their own place, in a neighborhood of their own choosing, when the magical combination of interest rates, cash flow, job security, mobility, taxes etc. align. I love my friends⊠but not enough to bail them out of a bad real estate investment just because ânobody could have predicted 2008â (except for everyone who said that everything is over-valued).
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Agreed - plus, being a landlord in Allston/Brighton is a challenge. Renting to college students often comes with a lot of headaches - family member once lived in a place that they crammed 10 kids - there is no way Iâd want to deal with that.
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None of the OPâs options are in Massachusetts, so please move on from Boston real estate
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