Have you considered buying property for your student children? It’s pretty tough to get on the property ladder now; this, coupled with soaring rental costs, makes starting out on your own quite difficult, so why wouldn’t you want to give your children a helping hand?

Take a look here to find why buying property for your student offspring could be a good idea:

Property Prices are Soaring

With property prices rising across the UK, it’s no wonder you’re worried that your children won’t be able to own their own house one day. Young adults are struggling to save money for a deposit and as a result, almost one in five parents is hoping to buy a property for their student children in order to provide them with a nice place to live.

In fact, last year, parents in the UK gifted their student children a total of £8.2bn for them to buy property, which according to the Lloyd Bank Family Saving Reports is an average of £13,281. That’s a generous 10% deposit on a £130,000 house.

Read more: Investing in Private Accommodation for Students

 

Providing a Safe and Stable Home for Your Children

Research carried out by insurer Direct Line reveals that when children go off to university, 280,000 parents hope to buy a property for their student teens to live in. Why? Well, 40% of these parents said it was to provide a safe and stable place for their children to live in.

Making a Solid Investment

And not only does a property for your children benefit them, it benefits you as investors too. 25% of parents hope to achieve a regular income from the property that they purchase for their children.

Reducing the Cost of Student Housing

Tuition fees and the other expenditures that come hand in hand with university are encouraging parents to look to other income sources to fund their children’s education. By buying a house for your student children to live in, you’re technically cutting out the extortionate cost of student housing whilst also gaining a second income.

More than a quarter of students claim to currently live in a property owned by their own parents or other family or friends. 17% of parents believe that buying a property will reduce the burden of paying rent.

And with universities across the UK being either at, or close to, full capacity, students are left trying to seek accommodation elsewhere. Many landlords are hesitant to rent to students therefore there is a lack of student property available. When parents buy property for their children it means they won’t have to deal with this issue.

What Shall I do with the Property Post Education?

There are a number of options to consider. If children wish to stay in the house after completing their degree, you could either continue renting the property out to the flatmates until your graduate children land themselves a job and are able to contribute to the rent.

On the other hand, your children could decide to move back to the family home, in which case you could rent out your property to completely new tenants, students or not.

Alternatively, you could sell up and buy a property abroad instead.

Should I invest in property for my children?

Of course, it’s up to you. But buying a property for your children can provide a pleasant place for them to live while benefitting them financially – and helping you out too.