Here’s how you can use real estate to save for college tuition.
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Have you ever considered using real estate to subsidize your college bill? If you’re starting a family, it’s something to think about, and today I want to talk about why.
Let’s say you want to start a family, so you and your partner move into a nice, single-family home. Soon, you have two kids and a dog. While your dog probably won’t be pursuing higher education, your children might. How do you plan on paying for it?
“You can collect rent while your new asset appreciates in value.”
If you have some money saved up, you could throw it into the stock market and cross your fingers, but I believe real estate could be a better investment. If your children are 15 or 18 years away from college, why not buy an investment property and let the equity grow while you receive a rent check?
When your children are ready for college, you can pay for tuition with your equity, or you can sell the property and defer capital gains taxes using a 1031 tax exchange. If you go the latter route, you could even purchase a new investment property.
The main takeaway from this blog is that you have other options when it comes to saving for college. If you have any questions about this topic, please call or email me. I’d love to help!