I’ve already worked with several parents of GATech students that have done this very thing! It’s an awesome way to make a real estate investment (especially with prices down where they are now) and either have an asset to sell in the future, or perhaps turn it into a weekend city getaway retreat after the kid(s) have left college.
Check out this story from the New York Times….Thom
Real estate brokers say that in the last year, they have seen more parents shopping for apartments for their grown children, hoping to take advantage of low mortgage rates and apartment prices that are still about 20 percent down from the market’s peak.
“I got a digital watch for graduation,” said Barry Silverman, an executive vice president of Halstead Property, “but I’ve worked with families where the children are getting an apartment.”
These congratulatory apartments are often studios or small one-bedrooms, but on occasion they are bigger-ticket items, he said, because “the parents see it as a long-term investment and a good place to park their money.”
In many cases, brokers say, the parents do not live in the New York area and view the apartment as a potential pied-à-terre for themselves when the child decides to move on. Some buy it as a straight-out gift, a gesture of profound affection sweetened by the current generous tax exclusion. Others buy it as an investment and retain ownership, and still others acquire it through a family trust for joint ownership.
For the rest of the article that appeared in the New York Times, click on More Parents Buying Apartments For Their Children.
