What's Better-College or Short Sales?

What's Better - College or Short Sales?

College certainly had a positive impact on my life, but I also realize there are many among us that don't necessary need to attend college.  

Once upon a time, in an economy far- far away, a young person would study hard, go to college and earn a good living with excellent benefits and a big fat retirement account. Like most fairy tales, the reality doesn't quite live up to the modern day expectation. Research conducted by PayScale.com has turned the conventional wisdom of saving up for a college degree on its head. Not only is college time consuming, expensive and somewhat exhausting...it's also not the investment it used to be; in fact, the majority of colleges have a very low ROI or return on investment when compared to those that only obtained a high school diploma.

As dismal as these sounds, the research is actually supported by Bloomberg Businessweek who found that an ever decreasing number of colleges will produce graduates capable of earning back the cost of their college degree.  There are several reasons for the decline of value associated with obtaining a college degree:

1. Declining earnings. Plain and simple, a college degree is no longer as valuable due to the devaluation of labor in general. In the past, obtaining a degree all but guaranteed good jobs...those days are long gone. It's not unusual to see college educated persons in part-time, temporary or otherwise unskilled positions.

2. Credential inflation. Not all college degrees are created equal. What once served as a store of knowledge has now turned into one more cog in the rungs of industry, pumping out semi-illiterate graduates without the ability to read, write or perform anything more than basic functions. Likewise, employers are increasing minimum educational requirements without providing additional compensation; for example, certification as a substance abuse counselor used to require a high school diploma and certification but now requires a four year degree --and soon to be Masters degree -  in most states.

3. Economic instability. The gold watch, retirement accounts and steady employment have gone. The few that remain would likely qualify as an endangered species assuming they would come out of hiding long enough to be counted. Even those graduates that obtain a great job have no assurance of keeping it over an extended period of time resulting in decreased long term earning capacity.

4. Wasted time, energy and money. Perhaps one of the most devastating blows to the total ROI is the impact of wasted time, energy and money on the lifetime earnings of the average college graduate. Not only has the cost of college risen but students are often not able to work as much as their non-college bound counterparts. The loss of income, failure to invest and high debt create an investment time-bomb that can take over a decade to correct.

So, what about short sales and investing in real estate? How does it stack up against a college degree? While one doesn't necessarily replace the other, a quick comparison does provide a bit of food for thought. On average, a college degree provides some advantages including an average income of roughly 10% to 25%, increased personal flexibility and decreased economic dependence upon government intervention; but notice, even one successful short sale transaction per year could quickly yield the same results without the need to invest years of time and effort into a college program with an uncertain outcome.

See you on the other side :)

Realtor@humble-homz.com