How to save thousands on your child's college education
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?
After the tuition, the cost of housing your student is the largest budget buster you'll encounter when you send him/her off to college.
Well, 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 the campus for your child to live in during their college years.
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 and take out a mortgage, then spend a couple of days painting. The next thing you know you could be be getting free "rent" for your child - or even better.
I personally know two families who took this path and actually ended up making money on their children's college housing expenses. With a strategic purchase and a little sweat equity, you can too.
And by the way, this strategy isn’t just for parents who will be paying out-of-pocket for their child’s education. Even if your child will be depending primarily on scholarships and/or student loans, owning their college residence could still save thousands off the total cost incurred to obtain their degree.
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