Pros and Cons of College Condo Investment

For parents, sending their children off to college is a major milestone in life. Besides facing the empty nest syndrome, they are also confronted with the high cost of college tuition. Many parents try to defer some of that expense by opting out of traditional dorm housing or renting an apartment for their student and decide instead to buy a condo for them to live in as an investment. While there are some valid reasons to invest in a condo for college students, there are also some facts you need to consider that may change your mind.

With the recent downturn in the real estate market, making any kind of condo purchase should be well thought out before hand. The Chicago real estate market hasn’t suffered as badly as some other areas of the U.S., but there is still a glut of inventory and reselling may take much longer than you anticipate. Most experts say that it takes about six to seven years of home ownership before you can sell at a profit, so with a typical college education only taking four years, your condo won’t have enough time to appreciate. Another factor to consider is that towns or neighborhoods that have large colleges often get a reputation as being a “party town” and aren’t as appealing to the typical home buyer. The value of the condo may not appreciate as much as one in another neighborhood would.

There are plenty of resale condos like the ones listed here http://www.bestchicagocondos.com/resale-condos/index.html as well as student oriented housing such as Ivy Hall at University Village. You can find just about any size condo in any price range in Chicago right now, so there is no shortage of homes if you’re looking to invest.

The main areas where parents often miscalculate are how much the condo is going to cost in the long run in terms of maintenance and fees, how much their profit will be when they sell and how well their child is going to be able to take care of the property on their own.

There are going to be expenses besides your monthly mortgage payment. Utilities, maintenance, taxes, condo association fees and insurance are just a few of the other costs associated with owning a condo. Liability insurance is a must, in the event that an accident takes place at a college party held at the condo and you are held responsible.

That brings up the other point about your child’s level of maturity or responsibility. Is he or she willing or able to take proper care of the condo, including cleaning and keeping visiting friends from damaging the property in any way? College is challenging, and some students may not be up to the added pressure of taking care of a condo. And if they aren’t into housekeeping, that means either you will have to do it or hire a service, which is another expense.

Also consider that there is a possibility, for whatever reason, that your child won’t want to live there for four years. He or she could decide to switch colleges, drop out, join the military or any number of other scenarios. They might even decide they are missing out on student life and want to move into a dorm after a few months. Then you’ll find yourself stuck with a condo, mortgage and no tenant unless you can find a suitable renter.

As for profit, you should sit down and carefully figure all of your expenses, including the mortgage. If you get an adjustable rate mortgage, those usually have a lower fixed rate for the first few years before the rate increases, so you could reasonably take advantage of that and sell the home before the higher rate kicks in.

Buying a condo for your college bound son or daughter may seem like a great contribution to their education, well-being and overall happiness all while making a profit for yourself. But any type of real estate investment carries a certain amount of risk, especially if you are counting on turning it around and selling in four years. Perhaps the best reason to purchase a condo for a student is not for a quick profit but for experience and long term investment.

How Renters Insurance Policy Helps You?

Renters insurance is an insurance policy that protects apartment tenants from a variety of perils. Statistics says, more than fifty percent of renters in America are not covered under insurance. Renter’s insurance policy is important as the landlord’s insurance policy only extends to the building’s common walkways and public areas.

Insurance laws of US vary from state to state and in turn, renter’s insurance policies vary from one company to other. However, a majority of the insurance companies advise that every renter should maintain a separate renter’s insurance policy to cover their personal belongings. Only few insurance companies allow multiple roommates under a single policy. If you and your roommates select this type of renter’s insurance policy to cover all of your collective possessions, each person’s name has to be listed in the policy, and has to ensure that you have purchased enough insurance to cover everyone’s property. In addition, you need to change the policy every time a roommate moves out or a new roommate moves in. Sometimes things become more complicated in the case of unmarried pair living together because each partner requires separate policy to cover their personal property. However, this is not an ideal solution if some unmarried couples have joint property. In this case, they should keep complete records of who actually purchased what, allowing making an exact claim if the need arises.

Generally, the renter’s insurance providers covers insure amount for the following list of losses:

• Fire or lightning

• Windstorm or hail

• Explosion

• Weight of ice, snow, or sleet

• Vehicles

• Smoke

• Vandalism or malicious mischief

• Theft

• Damage by glass or safety-glazing material that is part of a building

• Volcanic eruption

• Riot or civil commotion

• Aircraft

• Falling objects

• Water-related damage from home utilities

• Electrical surge damage

Majority of these policies annual cost of basic renter’s insurance policies usually ranges from 0 to 0 depending on where you live, that covers up to ,000 worth damages. This can be increased if you select extra protection against loss of high worth items like expensive artwork or jewelry. Therefore, every renter should take the renters insurance to protect themselves from unexpected damages.

How to Get Cheap Renters Insurance in Chicago

Looking for renters insurance in the windy city? Here’s how to get cheap renters insurance in Chicago with a reliable company.

What Renters Insurance Covers

Renters insurance protects your personal property. If any of your personal property is stolen, or is damaged by vandalism, fire, smoke, storms, explosions, or water damage, your insurance company will pay to replace it.

Renters insurance protects your assets from liability lawsuits. If someone is injured in your home and sues you for damages, your insurance company will pay for that person’s medical expenses and property damage bills. It will also pay your legal fees and court costs.

Last, but not least, renters insurance covers your expenses when you have to move out of your home while it’s being repaired. If your home is damaged by vandalism, fire, smoke, storms, explosions, or water damage, your insurance company will pay your hotel, motel, and restaurant bills, and any other additional living expenses you incur.

How Much Renters Insurance You Should Have

To figure out how much personal property coverage you need, total up everything you own – clothing, electronics, furniture, appliances, kitchen utensils, tools, etc. – and use that total as your insurance amount.

To figure out how much liability insurance you need, total up all your assets – saving accounts, checking accounts, CDs, stocks, bonds, etc. – and use that total as the least amount of liability coverage you should have.

What Chicago Renter Insurance Costs

Renters insurance is relatively cheap, costing anywhere from 0 to 0 a year for ,000 worth of personal property coverage and 0,000 to 0,000 worth of liability coverage.

Where to Get Cheap Renters Insurance

In order to get the best price on anything you have to comparison shop, and the same holds true for insurance.

When it comes to shopping for renters insurance you have three choices: 1. Spend a day calling local agents. 2. Spend half a day visiting insurance company websites. 3. Spend a few minutes at an insurance comparison site where you can get rate quotes from multiple insurance companies (see link below).

Visit http://www.LowerRateQuotes.com/renters-insurance.html or click on the following link to get Chicago renters insurance rate quotes from top-rated companies and see how much you can save. You can get more insurance tips in their Articles section, and get answers to your questions from an insurance expert by using their online chat service.

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