Skip the Room and Board and Buy a Condo

Physician's Money Digest, December 2005, Volume 12, Issue 16

Wall Street Journal.

The drawback:

Can you imaginethrowing away over$7000 per year overthe next 4 years? Anincreasing number ofparents with college-boundkids cannot either.With average 2004-2005 roomand board costing $7434 at private4-year colleges and $6222 at public 4-yearcolleges, according to the College Board,some parents are investing in the future oftheir children's education through realestate. Low interest rates and flexiblefinancing have provided an opportunity for6% of investment buyers to purchase asecond home for their college student,according to the Buying a condo or townhouse allows yourchild to pick their own roommate, someonewho potentially helps offset housingcosts, and provides a tax write-off for parents.Although many wait until sophomoreyear of college, some parents start as earlyas grade school in the hope that their childwill attend a college in a particular area.If you purchase a propertybefore your child is in college, there is noguarantee that they will want or will beable to attend the college you choose forthem. Also, many colleges require first-yearstudents to live on campus. Your best betmay be to wait until your child is a student,and then decide if purchasing a secondhome is the right investment for you.