Put your hand up if you have paid for your kids College or University rent!While many people would think that a student loan is responsible for paying for most peoples schooling, the fact is that parents do pay for education. Whether they take out a line of credit, loan or co-sign, it is being paid by a parent in a majority. While paying rent is most peoples option, why not invest in your child and yourself at the same time.
Why throw money away on paying rent for 4 years. Why not invest in a property and build equity. Depending on the type of house you buy, you could set up a game plan where a few mates of your child pays off the investment as well. Each room could be billed and the common expenses shared in a house.
There are many benefits to this type of investing:
1. Build Equity: At the end of 4 years you will have some equity built rather than building a landlords equity.
2. Small Investment: While you could invest in one property, you might be able to buy another property in the area. Depending on the way you structure it, you could have multiple tenants and make more money than just having one person in a typical rental situation. This builds upon #3
3. Trusting your Child: Leaving your child in charge of some responsibilities may be good for them. It shows them responsibility and introduces them to the business world. While they are receiving an education in their chosen field this is also a life lesson.
4. Older Cheaper: Students do not usually care about brand new and if the unit has the newest amenities. You can buy an older house and still have an easy time attracting renters.
5. Abundance: If you buy in the proper location you will alway have students to rent to. You must do your homework and sometimes get their parents to co-sign. This ensures the students do not destroy your place.
With the price of housing near schools rising, buying a place for your child and friends can solve many problems. All you have to do now is learn how to deal with College students. I’ll get back to you on that one! or Call me and we can discuss it.