In many places, the high price of student housing point to the value of purchasing a home rather than living in the dorms. Pro Teck Valuation services, a real estate valuation firm, has forecasted home values in college towns and cities, comparing the costs of student housing with condos in the local area.
Michael Eisenberg, accountant and member of the American Institute of CPAs' financial literacy commission, evaluates financing options if parents decide to buy a home for their child versus paying for student housing. Parents who become landlords can deduct for mortgage interest and property taxes as long as they receive rent, or if the property meets the Internal Revenue Service's requirements for a second home, CNBC reports.
"It's not for everyone or for every market," said Tom O'Grady, chief executive officer of Pro Teck. "But it's worthwhile to look at the option of purchasing."
Average room and board fees at private four-year colleges were $10,304 during the 2016-2017 school year, an increase of 20 percent over the cost 10 years before, according to The College Board. Public colleges offered little in savings — average room and board fees were $9,767 in 2016-2017, up 28 percent in 10 years.
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