Here’s how buying your college kid a house can benefit you and your family.
You can do some very positive things for your college student through real estate. If you have a kid in college now or is going to college next year, purchasing an investment property for them to live in could bring you a ton of financial benefits.
Your travel would be tax-deductible, for one. Additionally, you’ll get the benefits of depreciation on your taxes, write off mortgage interest to offset your income, and more. There are a lot more hidden benefits to owning income properties than people realize.
Before you make the leap to buying an investment property for your college-aged child, consider a few things. If your child ends up deciding to transfer or drop out of school altogether, that could leave you in a tricky spot. Make sure your agent has a “love it or leave it” program if you have any concerns.
Another potential concern is damage to the house. I don’t know if you know this or not, but college students can sometimes be irresponsible and are prone to damaging homes. Take an honest assessment of how responsible your child is, let alone the others that may be living with them. Are they responsible enough to handle it? Are you?
If you have questions about this process or anything else related to real estate, don’t hesitate to reach out via phone or email. Also, make sure to tune into The Central Iowa Real Estate Scoreboard Sundays at 9:30 a.m. on FM 106.3 KXNO. We look forward to hearing from you soon.