Consider a 2nd Home Investment for College-Bound Kids
By Fasil Khan
Do you have a kid who’s planning to attend school away from home? Instead of throwing away money toward rent or on-campus living, consider purchasing a second home. The benefits of this type of investment can be far greater than you may realize.
Depending on where your college-bound kid goes to school, it may be cheaper to buy than rent. Overall living expenses can quickly add up at college or university. Instead of spending several thousand dollars per semester for campus living, buying a home for your student could end up costing less.
While tax deductions for home owners and property investments have changed, there are still some benefits you can take advantage of with a second home. Property tax deductions will apply to some degree. Depending on specific circumstances, you may also be able to deduct mortgage interest costs. The same possibility applies to equity loan interest payments. When you invest in a second home, be sure to meet with a tax specialist to ensure you get the most in applicable deductions.
Keep in mind; investing in additional properties makes purchasing more real estate in the future easier. One thing I share with my clients who are looking to invest is that owning more than one property is a solid way to generate more income and additional savings that can be used to continue building your real estate portfolio. Buying a home for your college-bound student could be the ideal way to get started in this phase of real estate investing.
As a second home investment, a house for your college student can also provide other practical benefits. More privacy, better parking and access to their own laundry appliances are just a few. If you find a home located near campus, your student can take advantage of the ease of access to classes and school resources. Another potential benefit is to have a place ready for you when it comes to family visits.
While your student is in school, additional savings can be achieved with a larger house where roommates can help cover the monthly costs. Not only will the mortgage payment be less, so too will utilities in terms of direct, out-of-pocket expenses. If you decide to sell after their college career is done, the equity built in this type of investment can help toward your next real estate purchase, such as a retirement home. It’s like having a built-in savings account.
Other options once schooling has been completed include selling the home to your child as a starter home investment or moving into the home yourself. If your college graduate moves away, you can turn the second home into a rental. Properties near higher education institutions are highly sought after, making this an excellent income opportunity for years to come.
If you have a passion for realty, and for helping people, becoming a licensed real estate agent may be the next adventure for you to explore. Is your interest piqued? Call or email me to learn more about what it takes to be a successful agent.
Please support me, Fasil Khan as I participate in the Police Unity Tour for Detective Tamby Yagan from Paterson Police Department. http://my.policeunitytour.com/Khan
Fasil Khan is a Paterson Police Officer and Real Estate Agent at Keller Williams Village Square. He enjoys helping his fellow law enforcement officers with the purchase of investment properties, as well as general selling, purchasing needs. Have questions? Connect directly by calling 201-739-7397 or email: firstname.lastname@example.org.