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we cruised the online listings at realtor. com last night and found several houses we like, some with upwards of 2 acres, in our price range. Entered our info and it told us to expect a mortgage of $721/mo on the house we liked the best that was the second most-expensive one in our price range {3 bed 2 bath, 15 y/o home on 1.9 acres w/ city utilities} I thought that was awesome. Shocking considering that's only $21 more per month than we pay for rent here with free cable, water/sewer & trash thrown in. I was happy..

so I read a few minutes ago on the Sunday activities thread and using the links provided found the average rental prices to be upwards of $1,000 for a rental house, even those that didn't mention # of bedrooms or lot size... and many stated that tenant pays all utilities.

So I'm curious. Why are the cost of rentals so high and mortgages so low? I understand alot of it has to do with IU being something of a more big-deal school, though tuition there is cheaper than it is here and they have far more scholarship and tuition assisted students at IU than DPU does. Yet I'm curious as to why the vast increase in cost, and how it has gone on for so long? It seems logical to me that a parent would simply purchase a house for the student to reside in during their college years, making improvements and so forth as one would for a rental property, and then sell it at the end of the college career, likely turning a nice profit. That would keep the housing market solid and the rental costs down a bit, from what I can tell. {it's actualy somewhat common practice here and in Ill. where I was considering going to school pre baby #1}

Thoughts? Ideas? Reasons?
 

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Just a guess...but I think rent is high because it can be. Lots of the students here come east coast areas where cost of living is much higher, so parents feel like the rent here is cheap even though we know it isn't. I talked to a Long Island dad on a plane from NYC last summer and he was so impressed with the "cheap" rent here that he was looking into renting a place for himself year round so he would have a place to stay when he came to visit. I suggested buying instead, he said he didn't want to deal with the upkeep. Smart parents who can afford a 2nd mortgage do buy their kid a place and make a profit from it later.
 

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I was shocked by the rent when I moved here too. I knew it would be more expensive due to it being a college town, but some prices were just ridiculous! I will never be able to rent a house in the University School district (where my son goes) because the rent is sky high. I live in an apt. because the rent is cheaper. DH and I looked at some homes in the district near IU and the homes were gross and the rent $$$$. We may end up living in the IU apartments when our lease is up because they are not too expensive and it includes all utilities (inluding cable and iternet
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Happy house hunting. I hope you find a good deal.
 
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