My company, Premium Properties, is completely immersed in the UC Berkeley Rental market. They manage over 500 units in the East Bay, mostly around the Campus. May and June are their busiest months. This is when school is ending, students are moving out and new leases for the coming fall semester are beginning.

Renting an apartment for your student can be fairly expensive. When you add up the amount invested in rent over 4 years it’s a sizeable amount of money. Purchasing may be a good investment for some parents. If you read my post on Renting versus Buying from April 22 you can find out about getting a 2nd Home loan for the purchase of a place for your student.

I’m seeing some nice condos coming on the market close to the Campus. This one, 2113 Delaware St., just came on the market today. It’s in a great neighborhood on the north side of campus, near an area called the Gourment Ghetto. Walk a few blocks and you’re at the campus and BART. The HOA fees are $281 per month and cover everything but your electric and communications. There is also off street parking. It’s priced at $299,000.

If you do the math: 20% down = $59,800, your loan amount would be $239,200. On a 30 year fixed mortgage at 5.85 % your monthly payment would be $1411.14. When you start calculating the tax savings you get as you write off the interest payments you will see significant savings over renting for 4 years.

To learn more about buying versus renting please give me a call or drop me an email.