Looking For That The Perfect Birth Gift?
Grandparents or parents searching for the perfect baby gift should pass by those standard Savings Bonds and instead, turn to real estate for the perfect baby gift that is able to transform a life forever. Think this sounds a little "over the top"? Consider how real estate would have performed in the past by using these simple steps:
1. Purchase an affordable home in a growing area or college town. Finance it for 15 to 20 years using a fixed interest mortgage.
2. Rent the home while the child is growing up. If you make money - consider it a big bonus or reinvest the extra to help pay tuition or other expenses.
3. Once the child is ready to begin college the home will be paid in full. College cost will be dramatically reduced since they do not need a dorm and can actually generate a small income by renting out rooms to other college students. Less work means more study time for your future student!
4. After college they can continue to rent for an even larger monthly profit, exchange the property for one closer to their new work location or sell the property to purchase their first family sized home...with a huge down payment and instant equity or perhaps even pay cash if desired.
5. If they continue to hold, the property will only increase in value while gaining greater appreciation over the years.
Now ask yourself...how would your life have been different without big student loan debt? Never having to worry about a roof over your head? A small rental income coming in every month? Enough money to purchase a great family home or even a retirement account in old age? You can provide this plus so much more simply by purchasing a short sale property with a 15 to 20 year mortgage on behalf of a special child.
It is hard to determine what the future may have in store for the younger generation although most experts agree, inflation is likely to make college less affordable than ever. As the federal government prints their way out of the current economic crisis, higher than average rates of inflation are likely to impact every area of life, resulting in severely limited futures for many young Americans.
On the other hand, even with low rates of inflation, the price of a home typically doubles or even triples every 20 years.
Today's ultra low priced investment grade homes could easily double or triple in value by the time your child begins college then double or triple again by the time they are in middle age. For example, a $100,000 home could easily be worth $200,000 by the time they start college - all paid in full! If inflation continued to creep along the same house could be worth $400,000 by the time they are in their 40's and $800,000 by their early 60's. This one gift could radically alter the rest of their productive life and even the lives of your great-grandchildren. So, buy a house and place it into a trust to assure the financial future of that very special child in your life. For that matter, you can easily have an investment home for each child. Now, that's smart financial planning!
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