| Got kids heading to college? If so, then along with decisions about college vs trade school, you might also think about helping them purchase their first home. Here’s how the thinking goes. Starting on the road to wealth: By giving them home ownership, you’re giving them something that may provide as much value as a college degree over their lifetime. You’ve probably heard the quote: “All wealth starts with real estate.” Improve their loan terms: When you co-sign a mortgage with them, you’ll dramatically help their credit profile, which can help them get better car loans, credit card rates, and even college loan rates. Share the mortgage: Because they’re young and flexible, they’re usually willing to share space with a roommate. If you buy right, the roommate can pay half or more of the mortgage. Build equity: But most importantly, your young adult has time. A real estate asset purchased when they’re 20 years old can be fully paid for by the time they’re 50. That’s setting them up well for the future. They can also use their equity for buying additional real estate, paying for college, or making other investments. But there’s more! Leverage: By thinking about this before they head off to college, you might sway them towards colleges in more affordable communities. The cheaper the condo, the less down payment money you need, and they can take advantage of first-time buyer benefits. That’s great leverage for you. A fall-back asset for you: And even if they decide to go off grid and live in a yurt, you’ll have that condo as an asset of your own. Just make sure your name is on the title! |
Maybe You Should Buy Your College kid a condo
