Real Estate & College; Like PB&J

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Christie Mahany
Christie Mahany

Is your high school student graduating this year or next? Or are you like me and just getting into the other end of that spectrum? Mine are currently 5 and 1. I’m still getting the hang of Kindergarten and fantasizing about no longer needing a babysitter, much less sending them out into the world on their own. If you’re closer to the graduating age, I’m hoping you’re taking Rachel Cruze’s advice to “make applying for scholarships a student’s part time job”. Google it. She makes a lot of sense. If you’re not, Google it anyway and tuck that tidbit away for later. No matter where you fall, I want you looking at your potential for purchasing an investment property.

Real Estate & College; Like PB&J
Real Estate & College; Like PB&J

Yes. An investment property. Before you quit reading because you “don’t want to be a landlord” (that’s what property managers are for, of course), hear me out. According to a December 23, 2014 article by USNews, room and board added an additional $9,999 to college expenses in 2014-2015, on average. Yeah, that’s not missing a decimal point. That’s one measly dollar shy of ten grand. That’s if your student is sharing a room with another person, and likely a bathroom with an entire floor.

When you own the property that your student is living in, you have a few big monetary luxuries such as tax benefits and the incoming rent from the other students living there. There’s also perks like knowing you won’t have to lug your kid’s stuff up and down 4 flights of stairs twice a year when the dorms clear out (sorry mom), or knowing they have someplace to live during those classes they’re taking over the summer so they can graduate early. Many parents run the numbers and realize even buying groceries and a moderate meal plan they’re still coming out further ahead by buying a rental near the school.

Do you still have another 10-20 years to go before you have to worry about that? Buying a property now is actually one of the best ways to save up for a child’s education. This is an excellent article http://whitecoatinvestor.com/real-estate-as-a-college-savings-tool/ which goes into detail about the pros and cons, especially as compared to a 529 account. If you’ve been feeling guilty about not saving, or worried about not saving enough, this could be a great solution.

While an investment property isn’t right for everybody, it can be a powerful investment tool. There are resources available to help, and as always, I recommend you check with your tax advisor. Check into these ideas, and let me know what you think!

At home, Christie

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About Christie Mahany:

Christie Mahany
Christie Mahany

On any given day I’m a full time real estate agent, momma and chief wrangler of two kids and two dogs, married to a guy who essentially hunts and fishes for a living, and happy residing on the outskirts of Erie, PA. Sometimes I fool myself into thinking I have superpowers, except my cape is usually in the laundry…I hope. It’s all in a day’s work.

Editor note: You can follow Christie on social media at the following links:
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