What Parents Looking for Condos Near University of Saskatchewan SHOULD Be Buying
Moms and Dads in Saskatchewan (and abroad) want their children going to university to live in a home that is close to school, safe, and quiet so their kid can study hard and get the grades!
Instead of renting dorms or apartments, many out-of-town families are buying a condo unit as an investment, and having their children as tenants.
While this is smart, I’m going to show you an even SMARTER idea you haven’t even thought about!
Why is buying more attractive for families?
• Your child lives in a safe, secure home close to University.
• Keep your money, and put that money towards building equity.
• Your long term investment can increase in value with the market.
• You have a place to stay when you visit your child, and save on hotel costs.
• After graduation, equity and investment gains from selling the condo could cover tuitions!
• Your child has a quiet, private place to study hard.
If you have more than one child attending school, this plan is even more attractive, as the home can be used for each of them as they progress through. Keep it in the family!
OK, so we get why families are buying vs. renting a home for their kids. The smart investment and increased security makes sense.
But, what should you ACTUALLY be buying?
There are actually two more types of homes in Saskatoon that fit this investment strategy while taking care of your child’s needs:
The townhouse offers more independence and space for your student.
• Resale value can see higher percentages.
• Townhouses usually have a yard, but still be low-maintenance with shovelling / yard maintenance program, like at the townhouse pictured above in Hampton Village, Saskatoon.
• And the Townhouse fees are usually lower, $100-200/mo (compared to Condo fees around $300-400/mo)
While the townhouse might work awesome for some families, the next idea is by far the best:
3. House with Legal Basement Suite
Bingo! For an investment property PLUS high class living’ for your child, buying a house with a legal basement suite is where the money’s at!
Here’s why: Rental income! There’s a little higher upfront costs, but the return-on-investment is way worth it.
Do this: Rent the upstairs/main level to third party, and your child can live downstairs.
This type of investment can see more work involved, and it will be important you find excellent renters for the 2nd suite. But you can see the most investment return, as the rental income will more than pay for the home, and can even offset yearly tuition. Check out these numbers:
NUMBERS: Why Legal Suite House wins
Some example numbers.
5% Down: $12,500
Monthly mortgage payment at 2.74%: $1,127
Condo Fees: $350.00/mo
= Your child’s rent: $1,477/month
5% Down: $17,500
Monthly mortgage payment at 2.74%: $1,578
Townhouse Fees: $150/mo
= Your child’s rent: $1,728/month
HOUSE WITH LEGAL SUITE
5% Down: $22,500
Monthly mortgage payment at 2.74%: $2,028
Income from renters upstairs: $1,600
> Your child’s rent: $428/month
Look at those numbers! Only $430/month difference and you’re breaking even on a whole house. They get 2 bedroom suite, and your family is now making money.
• You CAN purchase for a family-member at only 5% down.
• Record-low interest rates.
• Someone else is building equity for you.
• Income tax write-offs and incentives (Ask us about these!)
Interested? These type of home are available right now, most within 10 minutes of the U of S.
Take a tour:
The ESYXE Real Estate team invites you and your student for a tour of available homes in Saskatoon. We’re happy to learn about your unique needs, and show you the best places available!
Book your one-on-one tour today!BOOK NOW