According to the Office of Student Financial Aid at the University of Georgia, average room and board expenses in
The intelligence of these investments applies particularly to parents of college students because of the vast savings afforded by purchasing rather than renting in a college town (an area where I have more than a little bit of experience)!
My parents helped me to purchase my first
By being smart investors, my parents made a one time cash investment of $7,000 and avoided paying rent or utilities for my entire time in Athens – an average savings of $7,300 per year. Eventually, they also received their cash investment back, AND their intelligent investment provided me a nest egg to promote a strong start to my future without having to get into debt over my head or ask them for financial assistance.
In addition to the obvious savings my parents enjoyed, and the nice start in life afforded to me by their investment, home ownership allows your young adult to build crucial positive credit while helping them learn responsibilities of home ownership.
If you have a son or daughter in college, I highly recommend looking into purchasing a property in the area. And, do it NOW to make another $9,800 that is only available for purchases by December 1st. Even if you lend the downpayment money to your college student - as long as they are first time home buyers living in the house, they should qualify for both the National $8,000 tax rebate and the
With that benefit, plus the rent, your savings should total ~ $40,000 over a 4 year college career. This doesn’t even take into account the savings for students who are currently on out of state tuition – add another $80,000 in savings for that. Plus equity gained and profit after the sell . . . for any family with the means, this investment simply makes good sense!
The market is perfect for Buyers right now, thus the property should produce a very nice profit in the future if they wait for a good market to sell.
In review: assisting your college age son or daughter with purchasing before December 1st rather than renting or living in the dorms saves an immediate $9,800; another $7,300 per year throughout their college careers, and then saves your young adult incalculable amounts in interest rates, fees, PMI, etc. by having a nice nest egg for their future. All the while, teaching them crucial lessons for adulthood. This is what I call a win-win-win-win situation!
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