It could be considered a magic trick that will have the
audience gasping in disbelief: turning one of your child’s college expenses
into (drumroll, please)…a profit!
Setting the stage for this trick will take some doing. Consider
the magician to be the parent of a Charleston high school age child. This should
be someone who subscribes to the overall philosophy of regarding every
potential catastrophe as nothing more than a well-disguised opportunity.
When this magician reads that college tuition and fees are
now $22,000-$30,000 per year, and that the average cost of room and board in
2013-2014 will range from $9,500 at a 4-year public college to $10,830 at a
private school, he doesn’t quake in terror. Instead, he thinks, “opportunity!”
After all, this is someone who sees a lemon and thinks “lemonade,” so when he considers sending a
son or daughter off to college, he thinks, “what
a terrific real estate investment opportunity!”
Believe it or not, that’s what some parent-magicians have
done—although, for sure, it’s a strategy that takes the right props: a combination
of institution, neighborhood, child and available capital—plus the willingness
to do the homework every good real estate investment takes. With all of them in
place, it’s more than possible to actually incubate a long-term gain from an ever-more-expensive
college foray.
Buying an investment property that will house your child plus
a select crew of roommates can do more than ensure that they have a safe and
comfortable place to concentrate on their studies. The calculation is almost as
straightforward as any other rental opportunity: for kids who will live away
from home, over a four year period, average accommodations will run between
$36,000-$42,000. Aside from the offspring’s undying gratitude, that normally comes
as a straight loss. If an off-campus residence is acquired as a real estate
investment, that same outlay could (presto!
chango!) turn into a substantial deposit on a rental property that the
family owns.
You don’t have to be Harry Houdini to investigate the benefits
any Charleston real estate investment can bring—nor one that could magically
appear if your high schooler is accepted to an out-of-town college.
The possibility of a real estate investment should always
be a card up your sleeve when you think about building your retirement
portfolio.
Interested in selling your
Charleston area home? Visit: www.jeffcookrealestate.com
Interested in buying a Charleston
area home? Visit: www.discovercharlestonareahomes.com
-Jeff Cook
Jeff Cook Real Estate
Charleston, SC
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