There are SO many reasons buying a property in the Fayetteville area is a great investment for you and your student. We've narrowed it down to the top 3 advantages of owning real estate in this area for your convenience (complete with financial example). We are happy to help you with any questions you may have!
Rental Income
- Your student could be earning equity in a home instead of paying rent to someone else
- Rental income from roommates can help cashflow the investment
Tax Advantages
- There are tax advantages to owning a home in Arkansas as property taxes and mortgage interest are deductible in most instances
- Costs to maintain the property as well as depreciation are also considered business expenses if you set up the residence as an investment/rental property. (Consult your accountant for professional advice)
- Visits to Fayetteville to check on or maintain the property may also be deductible expenses
Value Increases
- After your student graduates, you can rent it to other students or sell it (most homes appreciate in Northwest Arkansas every year.
Financial Case For Buying Real Estate in Fayetteville, AR Assumptions:
Student attends college for 4 years
Purchase a 3 bedroom, 2 Bath home for $299,000
Finance the home for 30 years at 6.5% interest
Appreciation of 3% per year
3 Roommates live in the home
VALUE APPRECIATION: Assuming a 3% appreciation rate, the property would be worth $326,725 after 4 years, a net value of $27,725 for you! Other advantages/considerations:
- Parking
- Noise control
- Pet ownership
- Roommate choice
- Safety
- Eliminating the stress of searching for housing each year
- Place to stay when you visit Fayetteville
If you have several children that will attend the University of Arkansas, the benefits compound!
Properties go quickly in the Fayetteville/Northwest Arkansas Market
I am a local Fayetteville real estate agent and resident (30+ years) that can search for properties that meet your needs, quickly share details, send pictures, and negotiate the local market on your behalf. Email me to join my customized list of interested buyers to get texts or emails when properties meeting your criteria become available. Contact me if you have questions or want to get started!
Lisa Zimmerman Morstad – Realtor, Pinnacle Realty Advisors
479-445-8666