Education is incredibly expensive these days, but it’s something we strive to provide for our children. And if your son or daughter has graduated and is now looking to further their studies, the bills will keep coming in.
Still, it is widely considered that postgraduate qualifications can boost salaries and help careers progress more rapidly. It sounds like a good investment if you can find ways to cover the costs. Of course, beyond the course fees, there is the question of accommodation.
As a postgraduate, your child is unlikely to receive much support for a placement in halls of residence. Now your son or daughter has graduated, chances are they’re not really in the mood for living with undergrads in a shared house either. This leaves you with a couple of choices. You can purchase an apartment for them to live in as they study. Alternatively, you can support them with rental payments until they’re ready to start supporting themselves:
There are many benefits to renting while you study. For a start, there is no commitment to a particular property, neighborhood, or city for the long term. Many students move quite some distance from both home and college when they start working. If they’re renting, this can be an easy transition. Renting is quicker and easier to do as well. Simply find a place, sign an agreement, and move in. There is little waiting, and certainly no finances to arrange.
So what are the best tips for arranging rental accommodation for your child? Start with your budget. Overstretching yourself might have dire consequences for your young graduate offspring. If you can’t afford any more than a room share, then make it clear that’s as far as you can contribute. Yes, there is a lot of work to do, but your child should be able to take on a few part-time hours to help make up the rest.
Next, pick a property agent that you can trust. You need to feel confident that any problems with the building will be managed quickly and effectively by the owners of the property. Companies like Liberty Properties boast that attention to detail when it comes to the satisfaction of the tenants is a priority. Look for references and feedback before you sign on the dotted line for any accommodation, especially if you don’t get a chance to check it out yourself
Always check the small print of any contract. You need to be informed about the other costs associated with living there. Are there taxes and insurances to be paid? What about heating, water and electricity? Are internet connections available and are pets permitted? There are plenty of other issues that might be particular to your child. Check them all out and make sure you’re happy. Many landlords will negotiate on certain issues. You need to be happy you can cover the cost of all of those extras.
Finally, don’t forget that your child will need to eat! Make sure the kitchen facilities are adequate and put aside a sufficient amount of money each month to cover these costs. It’s not easy continuing to support children well into their adult lives, but the payoff for them should be worth it. Renting isn’t too different from buying, but you can arrange accommodation faster. You can also get out of that accommodation commitment a lot quicker too.
If you choose to buy a property for your child, then you will be making quite the commitment. It is an investment for you, or them if you gift the property to your child. This means you need to spend a bit more time checking lots of different places out. You might not know the neighborhood well at all. And you might not be familiar with the commute times back to the faculty for your child each day. There will be many other costs to consider like ground rents, taxes, and insurances. Finally, you need to decide how big a property you can stretch to.
The bigger you go, the more rooms there are for your child to rent out to other postgrad students. This can help cover the cost of the mortgage, but there are also lots of responsibilities to consider with this option. For a start, you might have to take on a buy-to-let mortgage product. This can often work out cheaper than a standard mortgage and is open to people with less than rosy financial histories. But someone has to manage the other tenants. What will you do if your child doesn’t get on with the people in there?
You will also be responsible for all the maintenance and the safety of the property too. If something gets damaged, you have to repair it immediately, and then worry about trying to claim back the cash from the wayward tenant! Does your child have the time to take care of all these things? Becoming a landlord for this type of property can be hard work. You might prefer to use a letting agency to handle the contracts and tenant contact.
Of course, the investment remains yours. You might see some gradual increase in value for the property over the years. However, this might be long after your son or daughter has finished their studies and moved on to the city. What are your plans for the property when that happens? Will you continue your role as a landlord? Or will you choose to sell the property, hoping you’ve made a little cash on it in those couple of years?
All parents feel a duty to help their children out financially for as long as they need it. If they’re not working full time, it is nearly impossible for them to support themselves. Providing the security of a roof over their heads takes an enormous amount of pressure of your child’s shoulders. With so much study to do, they need all the help they can get. Can you help your kids continue their education?
This is a collaborated post.