Sunday, November 13, 2011

Awesome Way To Take Advantage Of A Down Economy

Not everyone suffers when housing prices sink:
While students at other colleges cram into shoebox-size dorm rooms, Ms. Alarab, a management major, and Ms. Foster, who is studying applied math, come home from midterms to chill out under the stars in a curvaceous swimming pool and an adjoining Jacuzzi behind the rapidly depreciating McMansion that they have rented for a song.

Here in Merced, a city in the heart of the San Joaquin Valley and one of the country’s hardest hit by home foreclosures, the downturn in the real estate market has presented an unusual housing opportunity for thousands of college students. Facing a shortage of dorm space, they are moving into hundreds of luxurious homes in overbuilt planned communities...

The finances of subdivision life are compelling: the university estimates yearly on-campus room and board at $13,720 a year, compared with roughly $7,000 off-campus. Sprawl rats sharing a McMansion — with each getting a bedroom and often a private bath — pay $200 to $350 a month each, depending on the amenities...

This city of 79,000 is ranked third nationally in metropolitan-area home foreclosures, behind Las Vegas and Vallejo, Calif., said Daren Blomquist, a spokesman for RealtyTrac, a company based in Irvine, Calif., that tracks housing sales.
You can't fault them for seeking out a bargain or for living the good life on that bargain. As long as they can afford it....

2 comments:

Left Coast Ref said...

A friend of mine lives in one of these neighborhoods and claims that the "College Kids" have lowered THEIR home value. I argue that the home value was down, thus allowing the opportunity for students to move in.

I know if I had the chance to do that when I was in college I would have jumped at the chance. Saving money while not having to share a bathroom - sign me up!

Anonymous said...

In general, a neighborhood with too many rentals (not just college) tends to lower the whole neighborhood value - it's a stability thing. Also, renters may be less likely to keep up general neighborhood standards - lawn care, trash, extra cars etc. I know that has been an issue in many DC suburbs, when large numbers of immigrants (may be 12+) share a 3-4 bedroom house and park cars on the lawn etc.