Real Estate can do an amazing job of funding college
With the rising cost of goods and services there are many that are concerned about providing a good college education for their children. The cost of tuition at most colleges and universities is going up just like anything else.

The other thing that is happening is that real estate values have declined in many areas of the country and continue to decline as I am writing this article in most parts of the country. In Stockton California it was recently reported that 2 out of 3 homes are in foreclosure, while 3 out of 5 homes are in foreclosure in Sacramento. Michigan, Florida, and Las Vegas have property values declining almost monthly.

A few years ago I heard a real estate educator mention the overlooked value of funding a college education with real estate. The educator mentioned that if you we were to purchase a modest home when your child was born or at least by the time your child is 3 years old a lot of good things will happen. The idea is to buy the home and pay it off within 15 years by either by taking out a 15 year mortgage or pre-paying the mortgage. Rent the home to cover your payments.

By the time your child graduates from high school 17 years later, the home you purchased will be free and clear. With appreciation who knows what a home will be worth when your child graduates. You can now gift the home to your child who can continue to rent the home and because the home is free and clear they can use the monthly income to fund their college education or sell the home and take a lump sum to fund their education.

You will receive the tax benefit of gifting the home to your child and they, being in a lower tax bracket will pay very little tax.

With all the Idaho Short Sales and Idaho Foreclosures here in Idaho the opportunity has rarely been better. Think about it. Homes in many parts of the country can be purchased at 60, 70 or 80 percent of true market value. It is very possible to purchase an Idaho Short Sale home or Idaho Foreclosure today and have that home triple or quadruple in value. Simply consider what real estate values have done over the past 30 years and you can see that there are always corrections and real estate always rebounds and always rises over the long haul. If you are a grandparent what a great thing you can do for your grandchild. They will never forget it.

Take serious look at this overlooked tool to fund a college education. I can assure you that my clients are going to Boise Idaho Real Estate to search for their next investment that will fund a valuable college education.