Rez, rent or buy

[Sample00]

My daughter is attending University in Edmonton.
Currently she is renting a room in a condo with 3 other girls.
As you can probably imagine, this has its share of issues.
She is committed to remaining in the agreement til the end of the year.(April/2014)

We are discussing options for next year and I am at a loss as to how to best handle the situation.
Rez looks like its going to be about 700.00 per month
Renting an apt/condo looks to be about 1200 -1500 per month for a 2/3 bedroom.
buying is going to be about 200,000 for a decent 2/3 bedroom condo, which would make payments about 900.00 per month plus condo fees and utilities.

I hate throwing money out for rent but in this case I am considering it because of the "no other responsibility clause" that it has. Once you;re done, you're out.

I'm concerned about buying a place for a couple of reasons:
a) there is more responsibility for owning your own.
b) added costs like utilities
c) finding other tenants for the rooms (although, i dont think that would be a big issue if I am looking for university students. however, given the current scenario, do I want to be the owner and have the roommate issue)
d) my son will be heading to university in another year but he plans on attending school in calgary

any insight would be appreciated to assist with my dilemma.

[surferguy]

residence - it is more about the networking/connections made than the costs

At that age residence is the only way to go IMO.

[Dan02]

I'll go with option number 4,

you're daughter is going into her second year of university and is presumably a adult. How about making her figure out what she wants to do rather then being the helicopter parent of a grown child.

Not to say you can't or shouldn't help her out financially, but at some point you have to let go and not only make them make their own decisions, but own the responsibility for those decisions too.

[Sample00]

you're assuming I am being a "helicopter parent".
This is a discussion that we've been having in our household for the past month. She is actively involved in the discussion and at this point, we havent come to a conclusion as to the right way to go.
As a side note, I'm am flippin the bill here. I'd like to make sure that my money is being spent wisely. Her input is valued. I am looking for some outside feedback from other students and parents. Maybe we dont have all the information to make an informed decision.

[moon]

Helicopter parent because he wants to help his daughter figure out what the best living situation is rather than have her have to worry about that as well as everything else that comes with going to university?

Seems a little harsh to me.

I would say buying is the best option if you can do it as it gives you and your daughter the most control and will remove many of the pains that can arise with the other situations. I think it would be easier if your daughter was somewhat handy or if you or someone you knew was close enough to help out with any house issues but that probably is lower down the list of concerns than awful roomates, crappy living conditions etc.

I do know that for some res can be a really good experience. I never lived there or would have wanted to but for some of the people that I knew that were more shy or quiet it seemed to help them make friends easier and at least gave them a group of people that would be around them to help them feel less alone.

[GettinIggyWithIt]

I'd go with buying. This way you and your daughter have a lot more choice over who she rooms with. Although your son may not be going to school in Edm, you still have the option of renting (or flipping) that property when your daughter is done school. Of course this all depends on how comfortable you are with property management. I wouldn't recommend res. I don't really think it's that great of a networking opportunity. It can be hit or miss. Some people really enjoy res, others really hate it and it does tend to be more of a party atmosphere because everyone is in the same age group and on their own for pretty much the first time in their lives. Trust me - I've been to a quite a few res parties and while I enjoyed them, I am personally glad I didn't live in res. It would depend again on her personality (your daughter) and what she is comfortable with. Also, your daughter will make a lot more connections in her classes.

Renting would be my second option. Given your daughter's situation, she would probably prefer to rent a single bedroom (otherwise she is in the same situation as before potentially) close to school. I think this is good if you don't want to deal with the cost of buying or renting out the property afterwards. This isn't for everybody, so you'd need to assess your comfort level on that.

My only other advice is that make sure your daughter is also on board with whatever arrangement you two decide. Although it's your money, it's important that she's comfortable and happy with the arrangement so that she can focus on school and enjoying this time in her life.

[mykalberta]

If she was just starting out in first year I would say buy with the condition that the kid has to finish the school there and not flake out and finish somewhere else. With Edmonton unlike Calgary the highest rents are near the university and not downtown. Residence is less expensive but also brings its own issues.

My parents had the same dilema with me, my brother, and sister. All who went to school in Edmonton so a condo purchased in 1999 would still be in use by one of us today. The problem is finding a friend who can be a room-ate.

If you daughter is planning on making Edmonton her home after school then I would consider the condo (with the intent/expectation that she has to live there afterwards). Currently Edmonton has some big plans in regards to LRT expansion. I dont know how much of it is funded so you might want to check on their website to see.

My sister has a few friends who rent in Sherwood Park and take transit to the UofA. It allows them easy access to the Henday. Its something I would be ideologically against as Sherwood Park is the worst of the worst when it comes to parasite communities but its worth a consideration.

[Husky]

If you can afford it buy.

[Sample00]

Although it states it in my user tag, I should have probably mentioned that we live in a small community 2 hours west of Edmonton. Hence the reason we are looking at the option of buying.

If someone could, would you please tell me what some of the issues are with residence?

Will she stay in Edmonton after she completed school? that I dont know. It depends on where she ends up finding a position. (she's in Education)
But that part doesnt bother me too much as there are always kids going to University from here and we could always sell it or rent it out to one of them.

[Lil Pedro]

I lived with a buddy whose dad bought a place for us during our university tenure and it was the best four years of my life. From a renters standpoint (someone other than your daughter) I appreciated the fact that I knew my landlord and that if anything went wrong it would be fixed accordingly. Because of that I told him I would stay there for the duration of my degree, as did the two other roommates. In that case, i would recommend you to buy a place.

[REDVAN]

I'd buy a condo for her- then after she moves out you can make some good money off selling it or renting it to future students.

Edit: my wife's aunt and uncle recently did this and bought their daughter a condo. Since the mother works in Edmonton a lot, it also gives her a place to stay while there.

[Temporary_User]

I don't think I would buy a condo and have your daughter become the landlord of it. Is a one-bedroom an option?

Rent or buy calculator/graph:
http://www.nytimes.com/interactive/b...alculator.html

[Goodlad]

A lot of this would depend on the responsibility/maturity level of your daughter I think. Speaking from experience being the landlord of college students can be a huge pain in the ass. I was constantly having to fix/replace things around the house that didn't last nearly as long as they should have (2 dishwashers in three years). Landscaping was also a problem, but buying a condo would eliminate that headache. By the time they moved out 3 years later we had to replace all the carpeting in the house, repaint, and remodel the kitchen (cracked tiles all over the counter/floor).

[puckluck2]

If you can afford it, buy it. Not only will she live there and pay off the mortgage for her benefit, the way the market is heading you will likely make money on it instead of losing money paying someone else's mortgage.

[Sample00]

buying is an option for us.
However, my only concern is with the roommates again. I suppose that if my daughter could pick her roommates that might make the issues that she is having now lesson. She didnt have that option in the current arrangment.
The idea of a one bedroom apartment isnt as attractive because of the cost involved. If we went with this option, I think we would probably recommend rez over it.

[Flejszon]

Make sure you truly crunch the numbers and don't fall for the myth "why waste money on rent when I can buy a place and put money into an asset". While buying may be beneficial, you have to consider everything. Unless you plan on owning the condo over a longer period of time, than she is in school, the costs of ownership may be really high.

- The first few years of a mortgage, the majority of the payment goes towards interest. If your selling the house after she is done school, you really haven't put that much into the asset.

- Property taxes

- Condo fees

- Repairs for any damages. As the landlord, you are responsible for the upkeep.

- Utilities

- Real estate agent costs if you plan on selling.

- Risk on housing market: while this may be unlikely, the risk of a drop in value is on you. There can also be a potential for gain, but the amount of risk you are willing to take is something that should be evaluated.

- Flexibilty. Your daughter is probably 19-20. Only being about 6-7 years older than her, you have to understand that this is her first time put on her own. She is just now able to truly discover who she is. She may change her mind about what she wants to do, where she wants to live, or where she wants to go to school. Having the flexibility to find out what she wants to do is a big benefit. By buying, you are eliminating some of this benefit, as she has now committed for the long run to something she may not want in a year from now.


At the end of the day, you have to make weigh out the pros and cons. Flexibility, finances, control, risk.

[Brewmaster]

There are a few different options for residence at the U of A. There is Lister Hall, which is the main residence and consists of 4 large buildings on campus. 3 of the buildings are older, more social and where all of the 1st years and many of the 2nd year students live. It can be dirty at times but also the most fun and the best place to meet people. The 4th building, Shaffer Hall, is newer and geared towards 2nd or 3rd year students. It is generally cleaner and quieter but less social. All of these buildings share the same cafeteria where the food is a bit questionable.

Then, on the other side of campus there is East Campus Village which is houses that are owned and managed by the U of A residence staff. There is also HUB which is a residence built above a mall with multiple bedroom condo style arrangements. Both of these are typically for 2nd, 3rd, or 4th year students who often live with friends.

If she is going into 2nd year and wants to meet lots of new friends, I think Lister Hall would be a good option.

[getbak]

I would say go with the 2 bedroom condo and one roommate. The more people you have living under one roof, the more problems you're likely to have, but two people shouldn't be bad, especially if you get to screen the other person.

Ideally, one of the other girls she's living with now (assuming there's at least one who's also frustrated with their current situation) would want to move, that way, you've already done a pre-screening.

[ken0042]

So for everybody saying to buy- what happens when she wants to move at the end of school? The realtor costs involved in selling would kill any amount gained in mortgage payments. Sure- she could rent it out after; which brings about a new set of challenges.

I'd go with renting. You are not "throwing money away" by renting; contrary to what so many people would have you believe. You are paying to have a place to live; without having a long term commitment. Plus the added value I find with renting is it gives you the chance to try out different styles of homes, and find what you like. I have seen so many people "throw money away" by buying the wrong home for them too quickly, and then moving within 2 years.

[Travis Munroe]

Why not look into a cheaper 1 bedroom option that is dated...give your daughter motivation to do good in school such as a renovation of some part of the condo each semester and then giving her part of the profits when sold that would allow her to put a dp on her own condo.