20 August 2007Parents looking for a way to minimise the amount of debt incurred by their children while at university have been advised that property investment could be the answer.
Buying a buy-to-let property for a child to live in while he or she is at university would mean that a parent would be able to take advantage of annual growth rates of around ten per cent, according to Britannia Building Society.
A typical student home costing £150,000 would thus return £45,000 over the course of a three year course, enabling a student to pay off their loan once they graduate.
"This is a great way of giving your child a solid financial start in life and a safe place to live while at university," commented Britannia chief executive Neville Richardson.
"Britannia's research showed that 42 per cent of potential buy-to-let investors feel that their property would be better maintained if it was rented to a family member," Mr Richardson added.
Durham was recently revealed to be the student town offering the highest yields in term of student buy-to-let investment.
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