From Vanderbilt to Belmont, and Lipscomb to Trevecca University, the Nashville area has a plethora of higher education choices. Over the years we’ve assisted many college parents and grad students in deciding whether it might be a smarter idea to purchase a condo instead of renting or dorming during their student’s tenure in town.
Homeownership can be a great way to build wealth. Students often build equity that they can one day use as a down payment on a move-up home or to pay off student loans. If they choose not to sell right away, they’ll have a piece of property that’s ripe for renting, as there are always new college students looking for rentals. Owning a property can also be a great way for college students to get involved with the community and feel like they’re really a part of the city.
There are certain considerations students and their families should keep in mind when deciding to purchase real estate–such as the initial down payment and the maintenance required to keep up a home. When considering condominiums, many prospects are surprised to learn that financing in multi-unit properties is often much more involved than the process of buying a single family property. We’ve written about some of these challenges in the past, and I’d encourage you to check out this link about Buying A Condo Near Vanderbilt or Belmont.
OUR CLIENT EXPERIENCES
Julie helped her daughter purchase a unit at The Park at Melrose which is located off of the (now rapidly expanding) 8th Avenue corridor. I believe that The Park at Melrose is of of the very best condominiums complexes in Nashville for students. This particular unit featured 1129 square feet with one bedroom and a separate office. The Wesley’s initial investment was $210,000. They sold in June of 2017 for $300,000.
The Chen family had a similar experience. They purchased a two bed, two bath unit at the Park at Melrose in July of 2009 for $212,385. They sold in July of 2015 for $281,900. Their son had a roommate for most of his tenure, off-setting mortgage costs while also building equity.
Of course there are other areas on all sides of town that can also be perfect for students. The Gogliotti’s purchased a two bedroom townhome in the Westchase community off Woodmont Blvd in June of 2013 for $252,000. They sold in October of 2015 for $293,700.
The Albers purchased a brick ranch home in ths the Rosebank community of East Nashville for $173,000 in July of 2010. They sold in August of 2014 for $250,000.
Ramiro moved to Nashville for an extended paid internship. He purchased a two bedroom flat at Lenox Village in July of 2014 for $144,000. We are currently on the market and under contract at $199,000.
Nashville is often labeled the “Athens of the South” due to the many colleges and universities in the city and the metropolitan area. The colleges and universities in Nashville include:
Disclaimer: Nashville real estate has been BOOMING since 2013. The 2017 tax re-valuations showed that the typical home in Davidson County had appreciated by an average of 34% over the preceding four years since the last tax valuation. Some urban neighborhood saw numbers well north of that. It’s important to note that the returns seen by the highlighted clients may not be typical in coming years – nor can appreciation be guaranteed. However, even modest appreciation in combination with the forced-savings of paying down a mortgage and the tax benefits of homeownership should influence your consideration on investing during the college years.
Should you be interested in taking a look at options for homeownership in Nashville, we’d be honored if you considered calling on us for assistance and representation.