Back HomeWhy Waste Thousands When You Can Invest?
Do you have children in college? Are you looking to help them move off campus? If so, here is some food for thought. (Warning: Math to follow)
The average cost of a three bedroom apartment near NCSU is $730/month/resident and multiplying that out by 12 months and by three roommates we come out to about $26,500/year of renting that entire space. Now think about purchasing a townhome, which i know is a daunting thought, and play out the numbers the same way. Near NCSU campus there are townhomes that go for about $160,000. Assuming that you pay the same amount of rent that you would on the apartment into the mortgage of the townhome, the three roommates would have collectively paid off $80,000 of the townhome by the time they graduate college by spending no more than they already were if they had rented an apartment. Now those students or a single student if it was under one name are able to make the rest of the payments from the profit they make from renting the property to other students and now that student(s) has an investment property right out of college that is already 50% paid off. Or the property could be sold and would likely have the same value or appreciated slightly.
Hopefully i didn’t lose you in the numbers. Take a minute and play out the scenario and try to see the endless benefits that come from investing rather than expensing.
