would u buy ur kid a condo if she is in college and u could afford it?

Question

we think paying rent is wasting money. instead want to buy her a small condo. she can live there with at least one other friend who will pay rent. the mortgage will be offset by the renter. we can declare it a second home and take 50%deductible in taxes....is this an idea ...or what...she has at least 3 years to go in that school

Answer 1

I would do it. but i too would have my child contribute to the rent and utilities to learn responsibility. Many times the cost of buying versus renting or utilitzing college housing can be less expensive. Plus you have the added benefit of recouping your costs when you decide to sell.

As for the roommate issue mentioned earlier, should she move out before the 3 years are up, i'm positive that she can find another responsible roommate.

I think it is a wise decision and well worth looking into.

Answer 2

Tough call. My guess is that you couldn't amortize your costs over a three year period. Besides, there are lots of unknowns: Will the friend stay the three years? What will the market be for the condo in three years? You should set this up as a model on an Excel spreadsheet and plug in your assumptions and what ifs? My guess is that you'll be break even after taxes if there is no difference in the buying and selling price AND the friend stays there the full three years. But, watch out for something else if you figure you'll make money on any gain: You may end up paying capital gains taxes.

Earlier this week the Wall Street Journal had and excellent article on the cost of owning versus renting. I believe it was Monday's edition in Section D. Well worth the read if the financial aspects of your move figure into your decision.

Answer 3

You ought to buy it for all of the reasons stated, but also have her pay rent that is equal to her roomate. Part of college is learning how to survive in life, how to work for what you have, etc. If you give it to her, she will not learn any of the neccessary life skills. If she pays rent, then she will appreciate it more, take better care of it, be hald responsible and accountable, etc. etc. So yes, if she were my daughter I would buy it, but make her contribute in order to keep her from being spoiled. I had to work a full time job while in college and would never give up my learning experiences from that. I do however have several friends (two who have gone bankrupt) that their daddies provided everything for them and they wish that someone would have made them learn how to be responsible and stand on their own two feet. Same as a car... if you buy your child a car, they should pay at least half as well as the insurance. Kids need to learn that you work to EARN something, they value it more.
So go for it, but give her responsibility.

Answer 4

Absolutely its a great idea, why don't you take advantage of the tax advantages of having a second home or even investment property. Please call me for more information and let me give you some payment options and different loan programs to choose from, we do loans in all 50 states.

Fred Javaheri, Vice-President of Mortgage Lending
office line: 818-530-2163
cellular line: 818-523-1471

Answer 5

Why has it been depressing to stay inland? i could say the better abode with a three hundred and sixty 5 days for the infants to play. A small condominium in an incredible section is powerful for a a pair, yet in all possibilities are high no longer dazzling for infants.

Answer 6

if you can afford it, its a lot better than renting. bc u will make money on it..just dont sell now, hopefullly in 3 yrs the market goes back up and you can walk awy with good money

Answer 7

I know several people who have done this for their children.
It is a good idea, better than wasting money on rent.

Answer 8

If I could swing it financially, in a heartbeat.

Answer 9

Do it only if she will have her own bedroom.

Answer 10

do it...just don't put it in your kid's name.