How Real Estate Investing Can Help Pay for Your Child's College Education
As of 2021-2022 academic year, the average cost of college tuition and fees in the United States was $10,560 per year for in-state students at public colleges, and $37,650 per year for private colleges.
In addition to tuition and fees, books and supplies can cost an average of $1,240 per year, and room and board (housing and meals) can cost an average of $12,680 per year for students living on campus at public colleges, and $14,520 per year at private colleges.
There is a better way than to start your children off in huge amounts of debt, and Waylon can help.
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Rental Income
If you invest in a rental property for your child, you can use the rental income to pay for their college expenses. This can include tuition, textbooks, housing, and other costs associated with attending college. With careful management, rental income can cover all or a significant portion of these expenses, reducing the need for student loans.
Property Appreciation
Real estate investing can also provide long-term appreciation of property value, which can help pay for college expenses. As the property value increases, you can choose to sell it and use the proceeds to pay for college. Alternatively, you can use the appreciated value as collateral to secure a loan to pay for college expenses.
Tax Benefits
Real estate investing offers several tax benefits that can be used to pay for college expenses. For example, if you invest in a rental property, you can deduct certain expenses associated with the property, such as repairs, maintenance, and property taxes, from your taxable income. Additionally, you may be able to claim depreciation expenses, which can further reduce your tax liability. These tax benefits can provide additional funds to pay for college expenses.
