Establish Texas Residency
Purchase a Property to Help Obtain In-State Tuition at UT Austin
The Gill | Cave Group is a real estate firm that specializes in helping UT Austin students and their families from out-of-state purchase real estate that could help them establish Texas residency and qualify for in-state tuition. We help our clients acquire desirable investment properties that enable them to simultaneously build wealth through real estate and save more than $100,000 on tuition at UT Austin over the course of three years.
This page is designed as an overview for students from out-of-state to understand the benefits of purchasing a property. Once your family is ready to proceed, please reach out to us via the form at the bottom of this page so one of our licensed real estate professionals can help you get started with the process!
Benefits of Buying Real Estate
and Obtaining Texas Residency
- Obtain in-state tuition, which can save out-of-state students more than $100,000 in tuition over 3 years.
- The student can choose to live in the property and rent out any extra bedrooms to roommates. The student may also live elsewhere and lease out the entire unit, depending on their preferences.
- The total cost of owning the unit, even without the potential tuition reduction taken into consideration, is often less than renting.
After the student graduates, you can either lease out the unit to generate stable income or sell it.
- You will own an income producing asset in one of the most in-demand areas of the country. Austin real estate prices have appreciated more than 123% from 2011 to 2023.
- Take advantage of all the traditional benefits of real estate investing such as inflation protection, portfolio diversification and tax benefits.
Our Process
Step 1.
Consultation
Our team will discuss the process of obtaining Texas residency through the purchase of real estate, and we will answer any preliminary questions you might have. Once you are ready, one of our agents will help you begin the property search process. We have comprehensive access to both listed and hard-to-find off-market properties, providing you with many options to choose from.
Step 2.
Purchase a Property
Once we help you find the perfect property, we will guide you in successfully closing the transaction. Our real estate professionals will assist you in obtaining the necessary financing and deeding of your property in a manner that will adhere to the Texas residency guidelines. It is best to start your property search as soon as possible to maximize the number of semesters you can benefit from in-state tuition.
Step 3.
Securing In-State Tuition
After owning the property for a minimum of twelve months, your family will submit the appropriate paperwork to the University of Texas Registrar’s Office. Once approved, you will then enjoy the benefits of in-state tuition for the remainder of your student’s time at UT. After graduation, the Gill | Cave Group can help you lease out the property to other UT students to create an ongoing passive income, or you can choose to sell the property.
Testimonials
“This past summer as we prepared to send our son to UT for his freshman year, we heard about establishing Residency in Texas. I called Miller Gill with the Gill Cave Group and he clearly explained the process and assisted us with buying a condo in the West Campus neighborhood. I highly recommend the Gill Cave Group and Miller Gill to assist any family interested in obtaining in-state tuition at UT!”
★★★★★ – Edward K.
Parent
“The Gill Cave Group assisted me and my family with purchasing a condo for my son to help obtain in-state tuition at the University of Texas at Austin. Miller Gill guided us through understanding the requirements of UT in-state tuition, purchasing a property, and even assisted us with leasing the condo while my son lives in the dorms.”
★★★★★ – Audrey Q.
Parent
“The Gill Cave Group represented me with purchasing a property in summer. I worked with Miller Gill who provided guidance on the rules of how to become a Texas Resident and made the process of buying a property as easy as possible. After we closed, Miller gave me guidance on how to find roommates and he even wrote the lease agreements for my new roommates.”
★★★★★ – Tiffany L.
Student
Recently Closed Transactions
Our team specializes in helping families find properties around the UT Austin Campus that will help them qualify for in-state tuition. We are constantly seeking out opportunities for our clients by sourcing both off-market and on-market deals. Here are a few of our recently closed deals.
2500 Longview Unit 210
Purchased for $418,500
Closed on 08/05/2024
910 W 25th St Unit 404
Purchased for $470,000
Closed on 09/05/2024
103 Raintree Dr
Purchased for $274,500
Closed on 08/29/2024
3914 Avenue D Unit 104
Purchased for $247,000
Closed on 09/05/2024
2901 San Jacinto Unit 206
Purchased for $280,000
Closed on 08/07/2024
2401 Manor Unit 232A
Purchased for $178,000
Closed on 08/28/2024
FAQ
The University of Texas at Austin has 2 main methods of establishing Texas Residency that you may choose from. Each method has slightly different requirements:
Method 1: Ownership of Residential Property and Establishing Domicile in the Property You Own
- Requirement 1: The student must own a residential property in Texas for 12 consecutive months.
- Requirement 2: The student must live IN THE PROPERTY THEY PURCHASE for 12 consecutive months.
- The student must file an independent federal income tax return and may NOT be listed as a dependent on someone else’s return.
Method 2: Ownership and Operation of a Business in Texas (operate a rental property)
- Requirement 1: The student must provide proof of ownership and operation of their rental property business. This includes providing a copy of the deed to the property, bank statements, and a certificate of formation for the LLC.
- Requirement 2: The student must live in Texas for 12 consecutive months. (Student may live anywhere in Texas)
- The student must file an independent federal income tax return and may NOT be listed as a dependent on someone else’s return.
The process of purchasing real estate to help establish residency and achieve in-state tuition is a specialized practice that the Gill Cave Group performs on a regular basis. Our team has the experience and know-how to make this process as stress-free and seamless as possible. When you reach out to us, we will discuss the specifics regarding each step and after you purchase, we will assist you through the full 12 months of establishing residency.
Generally speaking, the University of Texas does not allow the parent to jointly own the property with the student. When the student submits their application for residency reclassification after 12 months of real estate ownership, the University will ask for a copy of the deed to ensure that the property has been solely owned by the student for at least 12 months. Don’t let this requirement deter you from the program; we have access to mortgage products that can help students with little or no financial history qualify for a mortgage with the help of their parents. We can also assist those who wish to purchase a property in cash for their student.
First and foremost, the student must be 17 years of age to have their name on a deed in the state of Texas. If the student is 17 or older, a parent may gift cash to their child to purchase the property. If the student is 18 or older, they may finance the purchase with a mortgage. The Gill Cave Group assists with both options and can walk you through the varying pros and cons that each option provides.
The University of Texas at Austin does not require the student to live in the property that they purchase so long as they operate the property as a business. By operating the student’s purchased property as a rental business, this allows the student to fulfill the requirement of living in Texas for 12 consecutive months at any residential property of their choosing, including a rental property or a dorm.
If a student wishes to own a property but not use it as a business, then they must RESIDE IN the property that they purchase in order to be qualified for Texas Residency. This is a new rule as of August 2024 at the University of Texas at Austin.
A popular option for out-of-state families with a student who does not want to live at the property they purchase, is to lease the property to another person. This is a service that the Gill Cave Group can provide through our sister leasing company – Housing Scout. Your student will get to live where they want to, and your family can still obtain Texas residency.
If you decide to lease your new property, we can provide leasing services through our sister company Housing Scout at a discounted rate for anyone who purchases a property with the Gill Cave Group.
If you would like a property manager, The Gill Cave Group has established a partnership with a reputable property management company that can take care of all rent collection, maintenance coordination, and any additional upkeep needed.
The State of Texas requires any student who did not graduate from a Texas high school to establish residency in the State of Texas prior to obtaining in-state tuition. There are a few ways to establish residency, but all of the methods available require that the student must show proof of living in the state of Texas for a minimum of 12 months prior to obtaining in-state tuition. In general, you must wait a full year from the date you purchase a property before you can qualify for Texas residency.
The University of Texas is a public university and as such, they must follow the laws of the Texas Education Code in order to receive funding from the state. One of these Education Codes (Section 54.052 of the Texas Education Code) allows non-residents of Texas the ability to qualify for Texas residency through the purchase of real estate. This code outlines the requirements that a student must meet and is the basis of the Texas residency program.
In general, by becoming a property tax paying resident of Texas, the state rewards you by offering higher education at a discounted in-state tuition rate. This rate is approximately 1/3rd the cost of out-of-state tuition and it can save you tens of thousands of dollars annually.
Here are further official resources from UT and the State of Texas explaining the program:
https://onestop.utexas.edu/managing-costs/cost-tuition-rates/texas-residency/
The Gill Cave Group is a licensed real estate brokerage and as such, we will represent you with the purchasing of your new property. Our compensation is paid via commission from the purchase of your property. Commissions are typically paid by the seller in a transaction, so as the buyer, you do not directly pay for our services.
Austin is one of the fastest growing cities in the country and as such, the price of property is steadily increasing. Most families that are seeking to obtain Texas residency choose to purchase a condominium in or around the UT campus. Prices in this area start at approximately $185,000 for a studio apartment and can range up to $600,000 for a high-end multiple bedroom condominium.
The Gill Cave Group will assist you in obtaining financing for your purchase. Most families choose a 20% downpayment on their purchase, but we are able to find lower down payment options if you would prefer.
The University of Texas does allow for foreign nationals to obtain Texas residency and in-state tuition if they have the correct Visa type. Typically the purchase of property by a foreign national is more complicated to finance, but the Gill Cave Group will provide you with the available options.
Below is a link to view the official list of Visa types that the University of Texas allows to participate in this program: