Kiddie condo that is.
Real Estate agents affectionately refer to an investment condo in Boston that a parent buys for their child while they attend college as a “Kiddie Condo”. They buy this investment condo as alternative to paying a high rental prices or dorm costs. Some colleges and universities in Boston only have the capacity to house a small percentage of their students in dorms, driving up the cost of nearby rental apartments and condos. So buying a condo instead of renting an apartment for their kid(s) can often make more financial sense. Traditionally, these investments condos that parents buy are then sold at the time that the student is finished with their education.
But lately, during my initial home buying consults, I am seeing a new breed of “Kiddie Condo” buyers. I am talking to parents with young children, most who are barely of school age, who want to invest in an income property in Boston. They believe not only in the strength of the Boston real estate market but its long term future prospects. They want to put their money in the housing market as a long term investment. Their hopes are that their investment will either pay some day pay for college education or at the very least house their child during their college years at a much lower cost than the alternatives at the time. At the same time they are collecting rents in a Boston rental market with the 3rd highest average rents in the country.
There is a variation in location for these investors as well. Typically, the majority of Kiddie Condo’s are purchased in an area with a high rate of students which makes sense — The Fenway, Kenmore Square, Brighton, Mission Hill. This new breed of buyer is looking in higher priced areas such as Back Bay and Beacon Hill. They are willing to pay a little more not only in hopes of a higher rental market, but also for a central location with easy access to many of the . The rents they collect are for the future of their families. Some of these condos will come with a tenant in place, some will not…for the best tips on renting a vacant unit see our 9 Step Guide for Getting Quality Tenants
Maybe we should just call these “Toddler Condos”.
