Sending your kids to post-secondary school is costly. If you don’t live near the institution, that could mean also needing to rent something for them to live in which just adds to the overall expense. In fact, renting can be the largest expense associated with them going to school.
But, this also presents a fantastic investment opportunity for parents. Instead of putting money toward rent, you may want to consider purchasing a second property where your child can live while attending school. By investing in a second property, parents can choose to pay into a mortgage rather than into rent! Once your child has graduated, this could become an income property, retirement property if you plan to downsize or can be sold.
Example: An average degree takes four years to accomplish x an average rent of $12,000/per year = $48,000 over the course of your child’s schooling. That’s $48,000 you could put toward a mortgage instead. You will require a down payment, but you can rent out the spare bedrooms in the house which can help cover the cost of the mortgage.
If this sounds like something that could work for your family, we encourage you to come in and meet with one of our mortgage specialists to get pre-approved. They will take a look at your income, assets, liabilities and credit to determine what you can afford before you begin the search.