Boston is a major education hub. It has a total of 35 higher learning institutions including community colleges, regular colleges, and universities. This, coupled with its small-town feel and all the perks of city life, makes it one of the hottest places to live in the country. Each year tens of thousands of college students come to the Greater Boston Area seeking various forms of housing. The demand for Greater Boston apartments is immense. However, many parents overlook the ability to buy an investment property that could provide the opportunity to pay for their kids entire college tuition and beyond if they purchase the right property.
In this article, we discuss why it’s a probably a much better long-term goal for parents and/or cosigners to own an investment property rather than look for apartments for rent in Boston.
Buying is an Investment
Owning an investment property in Boston is often far better than investing in stocks. Buying a multi-family property or investment condo can provide the tangible benefit of living in it, generating positive cash flow and also appreciating in value. There are also significant tax advantages found in real estate that are not available to the stock market. Geographically, Boston is a small city and has limited land left to develop. Building and zoning codes are very difficult to navigate and as a result- construction never keeps up with demand.
Local neighborhood groups are often against any additional development which creates hurdles to new product and causes prices to continue to climb. Supply and Demand is always a serious force at play in real estate; and in Boston, demand always wins. Boston is currently sitting on some of the lowest real-time vacancy rates (RTVR) and lowest real-time availability rates (RTAR) in recorded history.
Building new construction takes longer than ever due to stricter building codes and more inspections and safety features than in years past. The new housing stock that we produce is…