Especially within the last year or two, the topic of student loans has been virtually unavoidable. The significant expense that it takes for kids to go to school has been all over the media, and it’s no wonder why.
Even though learning a trade may be the best option after high school for some, the option to attend college shouldn’t be costing our youth an arm and a leg. Every parent wants the best for their child, but if what’s best for their child is going to college, financial difficulties can pose a major threat to this goal.
There are a lot of college saving programs out there, but many of them have limitations on what you can do with the money you save. For example, if a child chooses a route in life that doesn’t include college, some savings program will penalize them and their parents for not allocating the funds toward higher education.
Thankfully, there are other ways to earn and save money, such as purchasing a rental property when your child is young. By the time they’re getting ready to go to college, this investment will benefit you in three ways:
1. By putting the tenant’s rental payments toward tuition, the property can essentially act as a college savings plan.
2. Assuming you were able to secure a 15-year loan, the home could be nearly, if not completely, paid off by the time your child graduates high school. At this point, you can do whatever you’d like with the property—whether that means continuing to rent it out, selling it, or something else entirely.
3. The money doesn’t have to go toward college. Whether it’s higher education or another path in life, the great thing about investing in real estate is that the profit you make from it is yours to do with as you please. There is no obligation to put it towards college if plans change.
Ultimately, investing in real estate can act as an amazing college savings plan. If you’ve got a child or are planning on having one in the future, this is certainly something to consider.
As always, if you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.