‘House to support education’ instead of renting, a new trend in studying abroad in North America?

'House to support education' instead of renting, a new trend for studying abroad in North America? In recent years, many Chinese students have passed the "housing to support education" program in the United States...

First of all, what does it mean to use housing to support education? To put it simply, "housing to support education" mainly refers to families who need to study in the United States. They use the benefits obtained from buying real estate in the United States to solve the problem of students' accommodation in the United States and provide part of the students' study abroad expenses.

This method is currently very popular in the United States. It has the following advantages:

(1) Provide a comfortable living environment for children, which can not only save renting costs during study abroad but also create a more comfortable learning environment for children;

(2) By purchasing real estate, you can not only obtain stable rental income to subsidize your children's daily expenses, but also enjoy stable investment returns through the appreciation of the purchased real estate;

(3) Based on the relatively stable growth trend of foreign real estate, if your children return to China after graduation to develop, they can obtain considerable investment income through selling or discounting the appreciation in medium and long-term holdings. So how is it possible to support education with housing? In the United States, for an ordinary two-bedroom apartment in a moderately developed area, if it is close to a university, the monthly rental price is between US$1,200 and US$2,000, and the annual rental cost is between US$14,000 and US$24,000. Taking a three- to four-year American university as an example, the rent required during the study period is between US$50,000 and US$80,000.

If you choose 'housing to support education' and purchase an ordinary apartment worth 400,000 within 2 kilometers around the school, the apartment size is generally two bedrooms and one living room, then your children will live in one room and the other room will be rented out. After four years of studying abroad, the property will be transferred. Based on the current U.S. housing price trends and local rental market conditions, after all taxes and study abroad fees are paid, the profit will be 35,000 US dollars, truly achieving 'zero cost' study abroad.

For example, for example, I bought a 2-bedroom apartment in New Jersey, USA for US$450,000 (the same below), with a loan of 70% = US$315,000, and a down payment of US$135,000; one room is for self-occupation and one room is rented.

The rent is US$300 per room per week, the total rental income for 4 years is US$300?2 weeks?year=62,400 US dollars; the interest expense for 4 years is 315,000?.6%?year=70,000 US dollars; tuition + living expenses=30,000?year= US$120,000; saving US$300 in rent for children living by themselves? 2 weeks? year = US$62,400; house prices appreciate by 7% per year in 4 years: 450,000?%? year= 126,000 U.S. dollars; total real estate investment in 4 years is 450,000 + 70,000 = 520,000 U.S. dollars; total real estate income in 4 years: rent 62,400 + self-occupancy savings 62,400 = 124,800 Australian dollars; 4-year tuition + living expenses: 30,000?year = 120,000 U.S. dollars.

In this way, after 4 years, the children graduate and return to China, and then sell it for US$576,000. At this time, the apartment's profit is: 576,000 (sales price) - 450,000 (purchase price) - 70,000 (interest expense) - 120,000 (tuition, living expenses) + 124,800 (rental income + children's rent savings) = 60,800 Australian dollars. This is a common "basic formula" for "supporting education with housing". If you follow this formula, after your children complete their studies, they will not only greatly reduce family expenses, but also make a profit.

So, what kind of house is more suitable for supporting studies?

(1) The price should not be too high. The price of US$300,000-600,000 is relatively moderate. The holding cost is relatively low and the ability to resist risks is strong. School district housing is close to the university, has a huge student demand group, is easy to rent, has convenient transportation and shopping, and has great potential for appreciation.

(2) Choose a compact apartment project with complete property and convenient for renting out additional rooms.

>There are indeed many investment opportunities near ASU. If you want to know more about real estate in Tempe, Arizona, please consult Tinna from Jinxin Real Estate.

(480) 28 7-0180 E-mail:Goldtrustrealty2010@ gma il.com