Many students at The University of Memphis deal with typicalconcerns associated with college life, like education, socialendeavors or a part-time job. But some add the responsibility ofpurchasing a house while they complete their college studies tothat list.
"There are still not a lot of students who are purchasing theirown homes, but more are doing it because of good interest rates orbecause they understand it is a good investment," said PhillipKolbe, U of M real estate and finance professor.
Purchasing a home is traditionally a consideration for studentsafter they graduate and obtain a stable job, but a number ofstudents who worked through high school and college find the ideais feasible.
"I got sick of paying rent on my apartment and basicallythrowing my money away," said Brandy Woolfolk, junior publicrelations major, who purchased her first home Aug. 13.
Woolfolk said she paid $11,355 for a down payment, which wasslightly less than the average 10 percent.
"My house was on the market for $124,900, and I was able to buyit for $121,900," she said.
Parents can play a major role in a student's purchase of ahouse. Sometimes they are willing to help with the payments,particularly if the neighborhood is rising in value.
"In some cases, parents buy homes for their children as aninvestment, especially where the prices are continually rising,like in California," said Thomas McInish, U of M financeprofessor.
Purchasing a house is a good investment in some cases, but a lotof the outcome depends on whether or not the student plans toremain in the home after college, the professors said.
Kolbe said a house usually needs four years to gain itsappreciation, so if a student does not intend to stay in the samecity; it is not worth the money. However, he said now is a goodtime for those who are capable to buy a house because the realestate market in Memphis is rising.
"Residential real estate is doing very well," Kolbe said. "It islooking at an appreciation of 7 to 8 percent, and in hottermarkets, like downtown, it's doing better than that."
But there are additional costs in purchasing a house, like thecosts of air conditioning and heating. And homeowners must do theirown maintenance -- there is no landlord to rely on.
"Buying a house is a lot harder than I thought it would be,"Woolfolk said. "I have property to think of if I wanted to moveaway. I do think it is a wise decision if you have the finances,know you will stay in Memphis and can handle theresponsibility."
