"This strategy saved her family an estimated $30,000 on room and board in the three years of college her daughter lived in the condo, plus $40,000 on out-of-state tuition during her daughter's junior and senior years, once she'd become an in-state student by living locally and qualifying for lower, in-state tuition."
Personal finance expert Lynnette Khalfani-Cox bought homes for both her college-aged daughter and son.
It might seem rather generous to buy your 18-year-old a condo or townhouse. But parents like Khalfani-Cox are finding that it saves them money in the long run.
Khalfani-Cox bought her daughter, who attended the University of Texas at Austin, a $210,000 condo instead of paying the university for room and board. This strategy saved her family an estimated $30,000 on room and board in the three years of college her daughter lived in the condo, plus $40,000 on out-of-state tuition during her daughter's junior and senior years, once she'd become an in-state student by living locally and qualifying for lower, in-state tuition.
Plus, Khalfani-Cox was able to charge rent. Each month, the rent from her daughter's two roommates paid the mortgage in full. After graduating last year, her daughter still lives in the Austin area - but even if she decided to leave or does in the future, there is still an opportunity for rental income.
"My daughter's credit score is in the high 700s, and that's rare for somebody right out of college," Khalfani-Cox said. She continued, "Because it worked so beautifully, we said, 'Let's do the same thing with our son.'"