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College is one of the largest expenses through the course of your childs life. It is also one of the main causes of debt in America. With todays rates of inflation, it is very hard to save for an event that will occur eighteen years down the road. However, capitalistic America has provided many ways to send your child to college without paying a single red cent. Below you will discover just how easy it is to reach financial freedom.
Property near college campuses has always been a prime investment arena. Now,it can be the key to funding your childs education. Three months before your son or daughter starts college, buy a well-maintained home within two to three miles from campus. When choosing a house, keep the following in mind.
- Make sure the home has at least four bedrooms. This creates a maximum rental and sell value.
- Take out the largest mortgage possible.
- Furnish the home from second-hand stores. (College students arent too picky. To find out, ask your nearest mother : )
Make your son or daughter the property manager of your rental property.
Making your child the property manager allows you to reap tax and business benefits, while also teaching your student about the business world. You could easily pay your child a small stipend to handle the responsibilities of a property manager. These include:
- collecting rent
- inspecting the property weekly for cleanliness and damage
- renting the property when there is a vacancy
- contracting any repair work that is needed
- reporting to you on the propertys financial and physical condition
The salary you pay your child for being the property managemer is tax deductible. This deduction can go towards your students books, supplies, or food expenses.
Save on gas money when visiting your child. Another perk to owning rental property is that you are allowed a tax deduction twice per year in order to inspect any out-of-town property. The primary purpose of your trip must be inspection and maintenance of your property. However, visiting your child may be a secondary purpose. Be sure to document all trips and their purpose.
Use the real estate Tax Deductions to generate extra cash.
The depreciation deductions you claim each year on your rental property give you immediate cash, which can be used toward college expenses.
Finally, your child has graduated and its time to sell your property. Use the profits from your investment to pay off your loans. At 8% per year appreciation, the property will be worth $ 20,000 – $40,000 more at the end of four years, depending on the original price.
Because housing in college areas is in very high demand, your propertys value should increase substantially. The best and easiest way to sell your property is to list it in the school and city newspapers with an ad that reads : “Send your child to college free. Call me for details!” Most likely, you will recieve calls in the first day or so. Inform your prospects of how rental property can finance their childs education. This key strategy will enable you to pay off any pending loans and leave your college student debt-free!