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Cutting College Costs Through Home Buying

converse-fields
BY BOB SNYDER (www.bob.searchphillylistings.com)
 
The cost of education has never come down. It only goes up. Parents (and students themselves) look for opportunities to save on college costs.
 
Here is one to consider:
According to College Factual, an online resource that tells about ‘all things college,’ (http://www.collegefactual.com/colleges/philadelphia-university/paying-for-college/room-and-board/#) the current average cost of room and board on and off campus in Philadelphia is $15,800. They estimate the cost for four years, (figuring cost increases) at $70,000 for 4 years. At that rate, you could buy a home in the $200,000 range.
 
It behooves parents to look at buying a property rather than paying rental or room and board costs. There is the tax write-off, for starters. This could put money in your pocket, rather than siphoning them out. Then, there is the ability for a two bedroom house to cover two students, (meaning your son or daughter could possible save 10K a year off college expenses, if they have a roommate, or you could save 10K a year if you have two kids in college, in Philadelphia).
 
There is the option that, after graduation, you turn the property over to the new grad. The new grad now does not have to search for affordable housing, or move, and may be able to continue a rental situation with another student. If grad school or med school is in the picture, there is another 2-4 years of savings.
 
If the property is empty during the summer, or year abroad studies, there is an option to rent it to others, or consider the current Airbnb craze! (https://www.airbnb.com). If all else fails, and your son or daughter decides to work in Tanzania, you can sell or consider renting the property to incoming students, but either way, you are ahead with tax savings and acquired equity.
 

Bob Snyder, GRI, ABR, RSPS, SFR, CREN

REALTOR®
SPACE & COMPANY
O.215.625.3650
C.609.602.9334

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