Send your Kids to college AND help them build wealth!

As the school year wraps up parents are getting ready to send their kids off to college.  This is an exciting time for families, but also one of mixed emotions and parents send off their kids who will need to learn to make their own way.  Parents hope their children will make good decisions, meet new friends, possibly find the person they will marry, and work hard to complete their education.  One of the best things a parent can do for their children is put them on the road to wealth through real estate. 

As a parent you can send your kid off to live in a dorm or rent an apartment as many do, but think of the benefits your child gains if you buy them a house!  You may think this is ridiculous, but hear me out! 

HOW CAN YOU BUY YOUR KIDS A HOUSE?

FHA loans allow for 100% of the down payment on a property to be gifted from parents (about 2.24% of the price of the home), and all the income requirements can come from the parents.  So if you can find a house near the school that would make a good place for your kid to live you can buy them the home, but put them on as the purchaser.  As their parent you’ll be on the hook if they don’t make the payment, but that is the case in many instances with apartments or renting a house.  And who do you think will get the call if your kid demolishes a dorm room? 

WHY WOULD YOU BUY YOUR KID A HOUSE TO LIVE IN WHILE AT SCHOOL?

There are a ton of reasons!  You will want to discuss the benefits with your CPA, Attorney, and Mortgage Broker for specifics, but here are some things to consider:

1) You help your child build up their credit.  A problem for many kids when they get out of school is that they have no credit and cannot buy a house on their own, or have to take higher interest rates because of a lack of credit.  Your child would get out of school with quality credit built up.

2) You now have an investment in your child’s school town.  You can write off your some expenses involved with visiting the property to make sure it is being taken care of properly.  Expenses like mileage, meals, lodging, etc.

3) There are tax benefits to owning a home you can take advantage of.

4) You have some control over the expenses your child has while at school.  You won’t have to worry about them wanting a more expensive apartment because their living expense is fixed.

5) Your child will learn how real estate works.  This is a huge advantage over many kids who get out of school and have no idea how to buy a house.  This can be a huge learning lesson.

6) When you child graduates 4 years later (we hope, but it is likely it will be 5 or 6 years) you can sell the house and hopefully reap the benefit of your investment.  You could also keep the house as a rental, or have your child keep the property as their first rental. 

There are many benefits to buying a house for your child to live in while at school, but the biggest is that they learn how to accumulate wealth.  They see that homes appreciate (unlike that sports car they want you to buy them for their high school graduation gift).  They learn so much and you will be the one that teaches them!

If your child is going to attend a university in San Antonio, TX.  Whether it is UTSA (The University of Texas at San Antonio), Trinity University, St. Mary’s University, or one of the other schools in the San Antonio area, I’d love to work with you and your child to make this a reality!

Give me a call or contact me through my website:

Chris Cowley

www.ChrisCowley.com

210-389-6006