Paying for your child’s college education could easily be one of the costliest investments you’ll ever make. Tuition and board just keep going up, and there really is no end to it in sight. But did you know that there is a way for you to save thousands of dollars over the course of a 4 year degree program?
Besides the tutition, the cost of housing your student is the largest budget buster you’ll encounter when you send him/her off to college. But here is a tactic you can use to virtually eliminate that expense in the long run, and quite possibly turn a decent profit from it: Buy a house somewhere near campus!
By buying a house instead of renting an apartment, you can turn that wasted rent money into a mortgage payment. Then after graduation you can sell it and get most or all of your money back. And if you buy wisely, you just might even turn a profit on the deal.
Better yet, buy a house with several bedrooms and you can rent them out to other students who will in effect be making the mortgage payments for you! Instead of becoming a drain on your education budget, housing your child while he/she is away at college could actually help you increase your net worth.
The key to making this work is to look for an older house that can be purchased at a bargain. If it needs a cosmetic face-lift so much the better. Make an offer, take out a mortgage at today’s historic low interest rates, spend a couple of days painting, and the next thing you know you could be be getting free “rent” for your child – or better!
About the author: Sheryl Hill is a real estate professional who has put four children through college without spending a dime in rent money. Follow her advice, and you can do the same!
Credit: Photo courtesy of Sara Haj-Hassan.