Alternative to 529 Account
How about a different way to pay for college? As many kids are preparing to head off to school, I want to remind you about one way to save for tuition. If you have a young child, consider buying a rental property. If you finance it with a 15-year mortgage, by the time your kid is ready to go to school, the house will be paid off so you can sell it and use the proceeds to pay for their schooling. If a 15-year mortgage doesn’t work, a 30-year will likely accomplish what you need given that over a long stretch of time, the house will appreciate enough to cover the college expenses. Of course, owning rental property also brings along some tax advantages that I haven’t even factored into the equation. And the property doesn’t even need to be here in Central Texas – there are many markets across the country that are more affordable and I’m happy to refer you to a great agent in these areas. So before you open that 529 account, consider real estate as a great way to save for college.