Investing in homes for college-age kids

Investing in homes for college-age kids
There’s a new trend afoot for parents of kids bound for college. The cost of dormitories, fraternity or sorority houses or off-campus housing can be $10,000 or more a year. Rather than throw money away on four years of student housing, an increasing number of parents are opting to buy a condominium or house near the college for their kids to live in. Roommates are recruited to help defray the cost, and parents can write off mortgage interest costs, which provides a nice tax benefit. By the time graduation rolls around, parents can sell the home or keep it as part of their real estate portfolio.

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