Fees may be free, but it takes lots of cash to send a child to college away from home. Kate McMorrow finds out why many parents buy homes for their students rather than renting accommodation and looks at properties on the market. Plus, what happens when a student is the landlord

The Leaving Certificate results are out and students are pounding the pavements in search of a half-decent place to live for the academic year. But the lucky ones will have parents who've thought ahead - and bought them a college home of their own.

With rents soaring and property a popular long-term investment, parents in increasing numbers are buying houses and apartments for their children's use during their college years, often well in advance of the dreaded Leaving Cert.

Cherie Blair got into hot water some years ago when she bought two flats in Bristol where her son Euan was studying, because she had unwisely involved convicted conman Peter Foster in the transaction. Otherwise, the Blairs were following a fast-growing trend in the UK, providing security for their children and an investment for themselves.

It makes sense to provide some kind of accommodation for college-going children, says Dublin auctioneer Joe McPeake, since the investment should appreciate considerably over a five-year span.

"It's not just for college, but when they get a job afterwards. Families can use it at weekends or in the summer and can leave their things there. Over the past 10 or so years, the affordability of people owning more than one property has widened and evolved - people own properties all over the place now," he adds.

The rush to buy houses and apartments close to colleges has caused an inevitable rise in values in these areas, with ex-local authority houses and reasonably-priced apartments selling like hot cakes when CAO results are posted.

Condition is no deterrent it seems and older houses without the obligatory en suite sell well if the location is right. On the other hand, some of the luxury apartments at The Grange on Stillorgan Road were bought by well-off parents with an eye to its proximity to UCD, according to selling agent Hamilton Osborne King. The same agency sold quite a few apartments at upmarket Mount Saint Anne's in Milltown for the same purpose.

Lisney's Drumcondra branch experienced strong interest in Santry Cross - a Pierse Developments scheme within walking distance of DCU - where two-bedroom apartments from €275,000 were snapped up by parents from down the country and the North.

Lisney New Homes recently handled apartments at Chancery House off Bride Street, which at around €500,000 for a two-bed were not cheap, yet appealed to parents for their family holiday and weekend potential. The €30,000 extra for a car-parking space was taken up in many cases.

Most buyers are in it for the long haul and there is often a line-up of younger siblings waiting in the wings, says Paul Murgatroyd of Douglas Newman Good.

"Settled areas with established communities attract the greatest interest. Parents know their child is safe and they are not throwing money down the drain in rents," he adds.

Michael O'Sullivan, Sherry FitzGerald New Homes director, agrees that avoiding paying out "dead money" in rent is one of the key reasons why parents splash out on student accommodation. Some buy years in advance, probably the same ones who book their children into private schools before they can walk. "The more kids you have, the more sense it makes," says O'Sullivan.

Down the country in college towns like Carlow, Tralee, Sligo and Maynooth, parents are buying Section 23 and Section 50 apartments, letting the extra bedrooms and getting tax relief on the rent.

In Carlow, Sothern Estates Real Estate Alliance notes two rush times for college buys - June and July, and August and September. Late buyers are usually those whose child's first option of UCD or Trinity has been dashed and an offer from, say Carlow IT, has been accepted.

"Three or four-bedroom semis near the college for around €250,000 are the most sought-after - kids now look for their own room, they don't cram in like they used to," says Harry Sothern.

"Parents are up against investors and aren't always the highest bidder unfortunately. Some sell on after a few years, others hold on as investors."

Not every transaction goes to plan. Eleven years ago, Kerry parents bought a three-bedroom bungalow in Edinburgh for their eldest daughter, who was moving into second year at the university. The contract had just been signed and they were choosing curtains when the daughter decided not to continue the course. Within two days, the Scottish notary had found a buyer and a small profit covered expenses.

Subsequently, the couple supplied each of their three college-going children with a deposit, a guaranteed mortgage and legal agreement that the deposit would be paid back when the house was sold on. Putting the houses in the children's names avoided Capital Gains Tax for the parents and gave their youngsters an early start on the property ladder.

Their only regret was not holding onto the Edinburgh house, which had cost them £40,000 fully furnished in the mid-1990s. On a return trip some years later, they saw similar bungalows in a notary's window for a princely £250,000.

NUI Galway has almost 3,000 bed places for students, so there is no panic to buy here, although some parents are snapping up older four-bed semis for around €330,000 in Gleann Dara and Corrib Park, says Lorraine Scully of Sherry FitzGerald Kavanagh.

However, city centre apartments for the same price would hold their value well and the family can use them in the summer holidays, suggests Scully.

Student accommodation in Cork City and Limerick have also improved and landlords are having to upgrade their units to attract tenants. Waterford has a huge student population and anything within two miles of the IT rents well. Competition for tenants has raised standards here too, so expect to splash out on a decent fit-out.