The cost of college housing in America is insane. According to a recent USA Today article, the average price of room and board at public universities is nearly $13,000 per year – often exceeding the cost of tuition.
However, there is a savvy strategy that parents can employ to significantly reduce these expenses: buying a home for your child to live in during their college years.
By purchasing a modestly priced property near the university, you can not only provide your child with affordable housing, but also potentially lower their tuition costs by establishing in-state residency and paying in-state tuition. Additionally, the property can appreciate in value over time, building wealth for the next generation.
This approach has worked well for my own family. When our children attended out-of-state public universities, we were able to purchase condos and townhouses for them to live in, with their roommates covering the mortgage costs. This strategy not only saved us thousands in housing expenses, but also resulted in substantial gains in the value of the properties.
Look out for my upcoming article on @AARP where I share the details of how we used this strategy, its pros and cons, and the unexpected benefits it’s had for our children too.
I believe this trend of parents buying homes for their college-aged children will only continue to grow, as families seek to outsmart the skyrocketing costs of on-campus housing. It’s a smart solution worth considering for any parent looking to maximize the return on their educational investment.
#CollegeCosts #Housing #RealEstate #ParentingTips #FinancialPlanning
