How to Afford to Send Your Kid to Oxford
One of the reasons I often give for people wanting to invest in property is to afford the best schools for your kids. I do this because I believe education is important, and I find that it is one of the number one expenses that parents worry about.
So, I thought it was appropriate that I share this story with you about how property could quite literally send your kid to Oxford (or whatever their preferred top school might be).
I was at a function not long ago and I saw a friend of mine there. She’d recently got back to Australia from a family holiday in the United Kingdom. While she was there, she took her 10-year-old son to Oxford University. Obviously, he was inspired by the surroundings because he told his mum that he wanted to go there and study when he finishes high school.
My friend looked at me at this point in the story and said with a bit of a laugh, “Like I’m ever going to be able to afford that!”
But the thing is, there is a way that she can afford it. I explained to her the steps she needed to take…
- Use the available equity in her home to buy an investment property with current interest rates. She could borrow all of the money and it will pay for itself after tax.
- Let the property just sit there for the next eight years.
- Once her son turns eighteen and is ready for university, use the increased equity and increased rent to refinance the property and pay the expenses for Oxford.
My friend was quite blown away with the idea of it all, but I didn’t come up with it. People have been doing this for years!
If you have kids and want to provide for their future, go and buy an investment property for each of them. Use the equity in your home to get started. At today’s rates, you can get properties that will pay for themselves. These properties will keep increasing in value and rental income over the years, resulting in available equity to cover your child’s education.
And if little Jimmy or Jane ends up interested in something other than a top university, perhaps the funds can go towards their first car, the deposit on their first house, their wedding, or something else. The important thing is that it gives you options.
This is just one way of looking at property investing – it can help you achieve so much more! Property and money gives you choices you wouldn’t otherwise have.
Happy property investing!
Daimien J Patterson
Daimien Patterson is the CEO of Integrity Investment Properties, a property investment company based in Australia. He regularly produces books, blogs, and videos on the topic of property investing. Head to [integrityinvestmentproperties.com.au] for your free copy of Daimien’s book, Safe as Houses.