Skip the dorm, buy your kid a condo
Prices in many real-estate markets may be close to bottoming out. We hope. So the old adage about buying low may be something to consider if you have a kid who will soon be heading off to college. The idea is to buy a condo for the kid to live in while attending school. That way, you’ll avoid paying through the nose for a dorm room or apartment with no hope of any profit. And if you buy a condo that has some extra space, you can rent it out to your kid’s friends and offset some of the ownership cost.
Lots of parents have made good money by following this strategy for the four or five or, God forbid, six years their kids spent in college and then selling the condo after graduation. Of course, the longer you can hold onto the property, the better the odds of cashing out for a profit. The other key factor to consider is the tax benefits. Here’s what you need to know….read more