TCU Housing

Students and parents looking for off-campus TCU housing may decide to purchase a house rather than renting an apartment or house. This can be a wise choice for many reasons, but it is not without pitfalls.

Before looking at the advantages of buying a house for your TCU student, it would be prudent to examine some of the dangers.

First, the TCU housing purchase could turn out to be a bad investment for several reasons. For example, the cash flow projections could prove faulty if the student is unable to find enough roommates to pay their rent and thus offset the mortgage.

Even if there are enough roommates at the start of the semester, some may move out unexpectedly or, for whatever reason, be unable to continue paying their rent.

And speaking of roommate problems, be wary of roommates who cause physical damage to the house or cause trouble with the neighbors. The first can be repaired (although sometimes at great cost); the second may not be so easily fixed.

Another reason TCU Housing may turn out to be a poor investment is if the housing market declines when you decide to sell the property. Real estate investments are no different than most other investments in that risk is involved. Fortunately, the TCU off-campus housing market is strong, and should continue to be so since the university is growing in numbers of students and in prestige.

Of course, another significant factor to consider in purchasing a house for your TCU student is the liability. Accidents happen, and they often are followed by medical bills and lawsuits. If you decide to purchase, make sure you check with a reliable insurance agent to protect your investment. Check out the ones FrogCribs recommends. [link to insurance agents]

But the advantages of purchasing TCU Housing for yourstudent instead of renting are numerous.

It can be a great short-term and long-term investment.

In the short-term, with enough rent-paying roommates, the monthly cash flow can actually turn out positive. Be sure to include not only your mortgage payment, but also taxes, utilities, maintenance, and insurance. In some situations, your TCU student may end up with little or no housing expenses because of the rent you collect.

But even if you only come out even compared to what rent would cost, the long-term advantages can be substantial. When your TCU student graduates, you have at least three options: (1) sell the house, (2) rent out the house, or (3) allow your TCU student to continue living in it as he procures gainful employment.
Naturally, if the house appreciates in value, you can make a profit if you sell. If you decide to keep it as rental property, it can provide income to you for many years. And if you decide to let your TCU student live in it indefinitely, the house may become even more valuable as the years go by.

And don’t forget the income tax advantages of purchasing a house for your TCU student. Generally, you may choose to treat the TCU Housing as either rental property or as a second home while your TCU student lives in it. Each treatment comes with its own set of requirements and beneficial tax deductions. Contact your CPA for details.