College tuition is higher than ever, and parents sending their kids to college are feeling it. Today I want to share an idea for how you can use real estate to help pay for it.
Today, for the first time in our nation’s history, the total amount of college student loan debt exceeds the total amount of credit card debt. College tuition rates have been rising faster than healthcare costs, faster than inflation, and faster even than the value of your home. People just can’t keep up; I know this because I have two children in college myself.
Today I want to talk about the best ways to fund a college education. Many friends I’ve spoken to about it are storing money away in college savings plans, trying to make sure that the money is there when their kids are ready to go to college.
The best way to do this, though, is by purchasing a single-family home. All you have to do is save up the money for a single down payment on the home, then rent it out; the renters will make payments to you to help recoup the costs. Over time, the value of the house will build, so that when your kids are ready to go off to college, you’ve got the money ready to pay for it. You don’t have to start when your kids are only two or three years old, though the earlier you start, the better off you’ll be.
There are a lot of vehicles to help you purchase that first home, and many strategies for how to finance it in order to make it work for college tuition. If you’d like to talk more about this path, reach out to one of the professionals at Team Forss Real Estate. We’d be glad to discuss it more in depth.