If you are sending your children to a university this year, I am sure you are thinking about all the expenses you will be incurring over the next few years.

Sending a child to university is very expensive, and one important thing that parents need to think about is the place for their child to stay all throughout the years.

Are you going to rent a university dorm, a condo or a shared room?  Have you ever considered buying a house for your child?  Will there be any benefits that you can get from buying a house as opposed to renting?  Is it possible for you  to earn while you send your child to university?

Here’s a great example of how you can make money while sending your child to university.  If you buy a 5 bedroom townhome for $320,000.  You will need  a 20% down payment and conservatively, today your can get  a mortgage with an  interest rate of 3.5% amortized over 25 years.

Using this model and a 3% annual appreciation your total appreciation over 4 years will $40,162.18.

Taking into account property taxes, rents, insurance, etc., there’s a chance that your total income would be as follows:

Positive Cashflow = $16,200.00

Total Appreciation Value = $40,162.18

Mortgage Balance Paid = $27,602.87

TOTAL INCOME = $83,965.05

Here are other benefits from buying a house:

  • You will save your child from the hassle of dealing with a landlord and other restrictions that renting has. This will also give them a quiet environment for studying.
  • You can benefit from tax deductions, depreciation, repair costs and travel expenses should your child decide not to go home during summer.
  • Remember that renting means you’re paying for something that you will not have in the end. Plus, a chance to choose a neighbourhood you think is best for your child.
  • Your child lives rent free for those 4 years and you have the potential to have paid for their education and living expenses from the income of the town home.
  •  You could give your child the experience and education of buying a home, learning about mortgages, cashflow, taking care of an investment and managing other people.


Buying a house can be a great investment not only for your child but for the whole family.  If you would like more information on buying a student home in Guelph please give me a call.  Irene Szabo at Royal Lepage Royal City, 519-824-9050.

Irene Szabo.