Whew, they made it! Twelve years of school-elementary, middle and high - is suddenly all over with a toss of a graduation cap. Your kids are on their way to college.
Feeling a little lost?
After the celebrations are done, you may find yourself reassessing your financial situation. Factors such as the high cost of college, the new expense of maintaining two households for your child, the question of whether it's time to downsize your residence - the sheer multitude of options can drive you crazy!
With the stock market no longer the moneymaker it once was, perhaps now is the time to diversify your investments. Grow your nest egg in a new, lucrative way, by putting it into something everyone needs, housing. Real Estate is a powerful investment category, and your local real estate agent has her finger on the pulse of the current market trends and can help you make a good investment decision. Options to consider include:
- Student housing. Dormitory housing for a Colorado student ranges from $5,000 to 7,000 plus per semester. You could purchase an investment property and house your student for free, while charging the other roommates to offset your expenses - and over time, acquire equity in the residence. While your student is attending college for the next four years, you can save as much as $14,000 a year or more in housing expenses, while your new property appreciates.
- Rental property. Have you considered purchasing a local investment property to rent out? Vacancy rates in Colorado are down, producing an increasing demand for rentals. Current owners are optimistic about future deman, and sharp rises in rent are like getting a pay raise. The average rent in Colorado rose 4.6% between the first quarter of 2011 and the first quarter of 2012, the largest increase in ten years - driven by a high demand for rental housing here in Metro Denver, where the vacancy rate fell from 5.5% to 4.9% during the same period. Jefferson's county growth rate for mulitfamily properties such as apartment units from 2010 to 2011 saw a whopping 384% increase, while Denver's was 290%.
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