In the past several years, more and more condo complexes have been built and more parents are buying condos or houses for their college students.
According to Lee Lambert, a real estate agent from Latter and Blum Real Estate Agency, the average two bedroom condo sells for around $75,000 depending on the features included. He said the market will determine how much a condo appreciates each year, but the average is from 3 to 5 percent.
If a $125,000 condo is bought and it appreciates 3 percent each year for four years the owner could sell the property for $140,688.
If the condo appreciates 5 percent for four years, the owner could sell the condo for $151,938.
According to Kim Ashford of Coldwell Banker Real Estate, some parents would rather invest in a house or condo than just pay rent.
She said there are mortgage programs available and prices for the properties vary because each condo addresses different needs.
Ashford said the condos range from $65,000 to $125,000 and her office sells about 20 to 30 condos or houses in the LSU area and on Brightside Drive per year to college students.
“If you have the money to invest in it, I highly recommend purchasing a condo or house,” said Brandin Andrews, a political science junior who lives in a condo owned by her roommate. “It is a wise investment.”
To rent a two bedroom apartment in Oakbrook Suites, furnished and including all utilities, it costs $1230 a month. The total cost per person for the year would average to $7, 380. For four years, the cost would be approximately $29,520 plus the cost of living.
Many students choose to live in apartments instead of condos. Oakbrook has 240 apartments each with one to four bedrooms.
An Oakbrook sales representative said occupancy is around 500 to 600 with some students only staying one year and others renting for the entire four years of college.
Sterling University Crescent, another popular student apartment complex charges $535 per person, not including electricity and water for a two bedroom furnished apartment.
According to a Sterling representative, the complex has 98.18 percent occupancy.
There are 660 bedrooms in the complex and so far there have been 132 renewals for the next academic year.
There are added expenses with a condo, such as the monthly condo fee, which varies with apartment.
With renting or buying a house, there are up-keep costs such as garbage, lawn care and maintaining the carpet and interior, in order to profit when selling the property.
“I would rather have a condo because I know that you can make money if they appreciate,” said Matt Cloy, a marketing junior. “But there is a high level of responsibility with keeping it up.”
A two bedroom condo in Leigh’s Cove costs $129,900 with a condo fee of $155 dollars a month.
With a roommate paying rent and the condo appreciating, the investment opportunity is clear.
“My parents bought a condo for my brother and me during my junior year,” said Alan Haney a history senior. “My brother is in law school, and I plan on going to either law school or grad school after college, so it was worth it to buy it.”
Haney said his parents will sell the condo, which is off of Bluebonnet Drive, after he and his brother are finished with school.
Haney said the condos being sold around his have appreciated, so his parents expect to at least break even, and probably even profit off the sale.
The average cost of a house in Baton Rouge is not much more than the cost of the average two bedroom condo. According to a Mankato Real Estate Report, the average cost of a house in Baton Rouge is $143,000, less than the average cost in Lafayette or Shreveport.
Ashford said many parents buy a condo or house if they have multiple children attending the same school.
She said often times parents will sublease the property for a year or two after their child has graduated, and then sell the condo or house.