There are many good reasons why buying for offspring during their student years makes sense. For most parents it will be to ensure their children have somewhere to call home for the duration of their studies, avoiding the annual clamour for rental flats and to subsidise living costs. A student in rental accommodation for 4 years in Edinburgh will pay, on average, a total rent of £19,200. We have recently sourced and advised on the purchase detailed below.
3 Bedroom, 2 bathroom flat close to Edinburgh University
Home Report Valuation £195,000
Purchase price £185,000
Negotiated discount £10,000
Deposit of £50,000
Rental received from 2 bedrooms of £800 per month
Mortgage & insurance repayments of £550 per month
Gross profit of £250 per month
At the end of the 4 years our client will have generated £12,000 gross rental profit as opposed to having paid rent of £19,200 representing a differential between buying and renting of £31,200.
If you are considering buying for a student son or daughter we can explain the process and help you as well.
