Parents, students buy houses to avoid renting
Phillip Morgan
Issue date: 11/19/09 Section: News
For the last year and a half of her college career, Vita Reivydas '09 did not live in a dormitory, deal with an unreasonable landlord, or even pay rent. Her younger brother Vytas, a junior, won't be doing any of these things for the next two years either.
The Reivydas family is following a national trend. They bought cheap real estate near campus for their children, rather than having them pay room and board for dormitory living.
"It started with my sister talking them into it," Vytas Reivydas said. "The Smith family owned it and he wanted to sell it. My sister told my parents about it and they bought it."
According to real estate agent Charles Bedwell of Good Earth Real Estate in Jackson, Mich., the current market is ideal for investors.
"There are a lot people that have money that are investing in houses," Bedwell said.
"Some of that is due to foreclosures. You can get a lot for your money right now," he added.
In some cases up to $8,000 of government tax credit is available, Bedwell explained. Government stimulus money is enticing many potential investors and first time home buyers. The tax credit which was expected to expire at the end of November was recently extended through April.
"There are tax advantages for close to what people pay in rent right now," Bedwell said.
The Reivydas family plans to sell the house after Vytas graduates.
"I'm basically acting as a live-in landlord. I take care of the bills and get on people about keeping the place clean," Vytas said.
According to Vytas, the four-bedroom house, plus an adjoining studio apartment cost roughly $131,000 and despite some minor repairs they found the house in good condition.
"Some stuff went wrong with old appliances but everything since then has been good," he said.
Before they sell the house, Vytas wants to do some minor renovations on the house and capitalize on the investment.
"I hopefully plan on doing some repainting and refurbishing," said Vytas.
"We will continue to rent it out until we sell it. With the refurbishing hopefully we turn a profit on it."
Senior Grant Wolf plans on buying his first house upon graduation in December. He is looking for a place under $15,000 that he can fix up and rent out to friends who are undergraduates.
"The current conditions of the housing market are such that one can more easily buy low and sell high," Wolf said.
Although he thinks that he may have to delay the project until next fall, he said he would like to see students renting a house from him by next semester.
The Reivydas family is following a national trend. They bought cheap real estate near campus for their children, rather than having them pay room and board for dormitory living.
"It started with my sister talking them into it," Vytas Reivydas said. "The Smith family owned it and he wanted to sell it. My sister told my parents about it and they bought it."
According to real estate agent Charles Bedwell of Good Earth Real Estate in Jackson, Mich., the current market is ideal for investors.
"There are a lot people that have money that are investing in houses," Bedwell said.
"Some of that is due to foreclosures. You can get a lot for your money right now," he added.
In some cases up to $8,000 of government tax credit is available, Bedwell explained. Government stimulus money is enticing many potential investors and first time home buyers. The tax credit which was expected to expire at the end of November was recently extended through April.
"There are tax advantages for close to what people pay in rent right now," Bedwell said.
The Reivydas family plans to sell the house after Vytas graduates.
"I'm basically acting as a live-in landlord. I take care of the bills and get on people about keeping the place clean," Vytas said.
According to Vytas, the four-bedroom house, plus an adjoining studio apartment cost roughly $131,000 and despite some minor repairs they found the house in good condition.
"Some stuff went wrong with old appliances but everything since then has been good," he said.
Before they sell the house, Vytas wants to do some minor renovations on the house and capitalize on the investment.
"I hopefully plan on doing some repainting and refurbishing," said Vytas.
"We will continue to rent it out until we sell it. With the refurbishing hopefully we turn a profit on it."
Senior Grant Wolf plans on buying his first house upon graduation in December. He is looking for a place under $15,000 that he can fix up and rent out to friends who are undergraduates.
"The current conditions of the housing market are such that one can more easily buy low and sell high," Wolf said.
Although he thinks that he may have to delay the project until next fall, he said he would like to see students renting a house from him by next semester.
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