While most of the larger institutions can provide ample housing for students, some don’t actually enough housing. If your kid doesn’t get accepted to dorms, that’s when you would opt to look for off-campus housing. But little do most parents know that this is actually a decent investment opportunity or at least save on housing costs.

Take a condominium unit for example. If you have enough savings in the bank and earning middle-class earning, you may want to get one for your kid, paying a down payment upfront (say $20,000) and mortgaging the rest (say $50,000) at 12% for the next 30 years. You can do some simple math to find out if making college housing an investment is worthwhile.

This might seem a hefty sum compared to what you’d pay for student housing, because aside from the mortgage, you have to pay maintenance fees. However here are some of the other things that you can factor in:

• Tax breaks – Mortgage payment and half the maintenance fee are usually decutible.
• Room mate – You should also be enterprising with the scheme. If your kid has a friend who would want to room with him, you can even charge a rental income, driving the monthly costs down.

After four years, you can actually sell the unit, with luck, at the same value as you’ve acquired it years before. And all of your expenses will be compensated and usually turn out a profit.

Caveats: Do the math and compare whether you can actually save from this scheme. If your family’s nest egg is “just enough” then you might be better off with the college’s student housing. Off-campus security and safety can also be an issue.

If you decide to pursue the investment, your kid should also be responsible with the unit. Any damage incurred during the stay will definitely affect the eventual resale value of the unit.