For a long time, investing in real estate has been a lucrative way to maximize returns on investment. Properties in college towns can provide investors with some unique opportunities for planning their retirement in Athens, GA.
The benefits include a large potential tenant market and reasonably stable rental rates. However, there are some drawbacks. You’ll most likely have frequent tenant turnover and major wear and tear issues.
Property can be divided into two categories for the average person:
- Personal property
- Investment property
These two types of properties are the types of properties that most people will consider when purchasing property in a college town. An investment property can have a variety of connotations; however, when purchasing in a college town, most people immediately think of student rental properties.
Given below are a few benefits of buying an investment home in a college town as a part of your retirement plan in Athens, GA.
Appreciation of Real Estate Value
The goal of investing in anything is to gain appreciation. You want your money to grow during your ownership period. Properties in college towns tend to experience steady growth as the local community benefits from the presence of educational institutions.
A Larger Tenant Pool
A college town usually has a large population of renters. New students arrive at school every semester and must find a place to live. The better maintained your property, the higher the demand.
Stable Rents
Because of the high demand for rentals in these areas, rental prices in the area can remain stable even when other parts of the housing market fail. Off-campus housing is frequently paid for by students’ parents or even the college itself, so you may get a higher rent for the property than you would otherwise.
The Area Sells Itself
If you need to liquidate your assets for cash, selling a home in a college town is relatively simple. These are in high demand among real estate investors and can often sell within days of going on the market, especially if you have advance leases for the upcoming school year and beyond.
Fewer Vacancies
There’s always a new student or college professor looking for housing. In college towns, people are almost always looking to rent or lease property. As long as you keep your properties in good condition, charge reasonable rents, and provide some curb appeal, demand for the property you offer should be high.
While buying investment properties in college towns can be extremely profitable, several factors must be considered. During the off-season, it can be difficult to find tenants. When it comes to their living quarters, college students can be quite destructive.
Property damage is common in college towns, and it may end up greater than the amount of any security deposit you may seek. Purchasing an investment property in a college town is not for everyone. You must weigh the benefits and drawbacks to determine whether the income potential is worth the potential pain.
