Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
A variant of this strategy is to for parents to buy purchase a rental property (anywhere for that matter as one does not where the school will ultimately be) way in advance of their son/daughter attending a college, with the idea of cashing out of the rental property when it comes time to pay for the tuition. If one does this way in advance, let's say more than ten years, such RE payoff can be quite significant, when you consider all the positive cashflow, capital appreciation, mortgage principal paydown, etc.
I became a landlord and what you described is one of the reasons I decided to go this route. It was actually not something I planned to do until fairly recently. A lender I was working with encouraged me to do this.
I strongly encourage people to look for a home in a location that is within commuting distance of a state university, and preferably a flagship state university.
I do know people who do this. Again, this is for people who are looking for ways to save money when it comes to the costs of attending college.
Just buy a second home? Also read the comment about rural states and commuting.
Quote:
Originally Posted by mechgator
I have also known people who have done this.
A variant of this strategy is to for parents to buy purchase a rental property (anywhere for that matter as one does not where the school will ultimately be) way in advance of their son/daughter attending a college, with the idea of cashing out of the rental property when it comes time to pay for the tuition. If one does this way in advance, let's say more than ten years, such RE payoff can be quite significant, when you consider all the positive cashflow, capital appreciation, mortgage principal paydown, etc.
Just buy a second home huh? Have you seen real estate prices in a lot if cities with flagship universities?
We had this problem before - right after WWII there was a similar housing shortage. We built affirdable houses. Millions of them. Created whole new towns.
Because if we tried this now, people would lose their minds, cry socialism, tell people to just get better jobs, pull themselves up by the bootstraps, and then come on message boards asking why people can't just afford good homes.
Just buy a second home huh? Have you seen real estate prices in a lot if cities with flagship universities?
Buying a second home is one way to do it, but you don’t necessarily have to go that route. You do have to plan things out. When your children are born, you make it a goal to move to a location closer to a state university by the time your oldest child reaches college age. You start planning from day one. 17 years is ample time to save up enough money and build enough home equity to make the move happen.
A variant of this strategy is to for parents to buy purchase a rental property (anywhere for that matter as one does not where the school will ultimately be) way in advance of their son/daughter attending a college, with the idea of cashing out of the rental property when it comes time to pay for the tuition. If one does this way in advance, let's say more than ten years, such RE payoff can be quite significant, when you consider all the positive cashflow, capital appreciation, mortgage principal paydown, etc.
People who have parents that can afford second investment homes are not generally the people who enter adulthood without the means to eventually buy a house. Upper middle class people tend to stay upper middle class. Just saying, a lot of us are latchkey kids with working class parents, in my case single mom working as a secretary.
I strongly encourage people to look for a home in a location that is within commuting distance of a state university, and preferably a flagship state university.
I do know people who do this. Again, this is for people who are looking for ways to save money when it comes to the costs of attending college.
The college towns I know of in the Big 10 have a high housing costs similar to affluent suburbs. The ones that don’t are dumps. You get what you pay for.
The college towns I know of in the Big 10 have a high housing costs similar to affluent suburbs. The ones that don’t are dumps. You get what you pay for.
Not to mention, that just saves on housing costs. Tuition has increased about 240% since 1980.
I hope this helps people who are considering buying houses, it's not about how much you make, rather it's how you are spending the money
I started in socal in 2010, less than 20k between me and my wife, and currently have one kid
I was making 50k, and she was making 30k, today I'm making 90k from the same job, she changed several jobs but still making 35ish k today, so as, you can see, our income is between 80k to 125k, as mine is graduately increasing while wife is fluctuating between 20 to 50k
so with that income alone, I was able to purchase a condo for 240k (down 20%) in 2013, and then purchase a SFR house for 720k (down 15%) in 2018 and renting out the condo
so how can you not afford to buy good homes if you make more than me?
Uhhhh - the fact that not all households have a yearly income of 80k???? Is this a real question?
Exactly. Yes, most banks are willing to lend about 3 x annual salary (pending good credit, etc.), which would yield 240K not counting whatever down payment you have. Yes, you can buy a decent house for this (in many areas).
But 80K is above the household median income. I don't know how single people do it. A dual income couple, I can see affording it.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
