Best Way for Parents to Help?

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
jdl239
Posts: 48
Joined: Wed Dec 22, 2010 5:45 pm

Re: Best Way for Parents to Help?

Postby jdl239 » Wed Apr 27, 2011 11:03 am

My dad is helping me out by simply co-signing on a house with me and thats it. If all goes right, I will have two roommates. I can give them a better deal on rent than they would be able to get anywhere else in town and it would save me anywhere from $15-25k in loan money for rent. Plus the equity I would be building in the three years while Im in school is going to be nice.

AP-375
Posts: 413
Joined: Tue Oct 05, 2010 8:18 pm

Re: Best Way for Parents to Help?

Postby AP-375 » Wed Apr 27, 2011 6:16 pm

jdl239 wrote:My dad is helping me out by simply co-signing on a house with me and thats it. If all goes right, I will have two roommates. I can give them a better deal on rent than they would be able to get anywhere else in town and it would save me anywhere from $15-25k in loan money for rent. Plus the equity I would be building in the three years while Im in school is going to be nice.


I thought that buying a house in law school is not such a good idea, since you'll likely just barely pay off interest by the end of three years, and be left no different than paying rent for three years, except you'll be stuck with a house. No?

rose711
Posts: 287
Joined: Tue Jan 11, 2011 11:57 pm

Re: Best Way for Parents to Help?

Postby rose711 » Wed Apr 27, 2011 6:46 pm

Minimize your debt no matter what. Don't worry about taking money from your parents - if they want to help, let them. I like the idea of them paying certain bills every month.

jdl239
Posts: 48
Joined: Wed Dec 22, 2010 5:45 pm

Re: Best Way for Parents to Help?

Postby jdl239 » Thu Apr 28, 2011 2:18 pm

AP-375 wrote:
jdl239 wrote:My dad is helping me out by simply co-signing on a house with me and thats it. If all goes right, I will have two roommates. I can give them a better deal on rent than they would be able to get anywhere else in town and it would save me anywhere from $15-25k in loan money for rent. Plus the equity I would be building in the three years while Im in school is going to be nice.


I thought that buying a house in law school is not such a good idea, since you'll likely just barely pay off interest by the end of three years, and be left no different than paying rent for three years, except you'll be stuck with a house. No?



In some cases yes. With two roomates paying rent, I will just about be living there for free. So even if I do break even on the house after 3 years, I will have still paid very little to no rent at all for three years. Beats paying rent for 3 years and have no shot at getting it back. Worse case, I cant sell the house.. But i should still be able to rent it out in a college town after I leave. Probably could rent it for more than what the note would be. Its a gamble for sure, but one I am hoping will pay off.

AP-375
Posts: 413
Joined: Tue Oct 05, 2010 8:18 pm

Re: Best Way for Parents to Help?

Postby AP-375 » Thu Apr 28, 2011 2:28 pm

jdl239 wrote:
AP-375 wrote:
jdl239 wrote:My dad is helping me out by simply co-signing on a house with me and thats it. If all goes right, I will have two roommates. I can give them a better deal on rent than they would be able to get anywhere else in town and it would save me anywhere from $15-25k in loan money for rent. Plus the equity I would be building in the three years while Im in school is going to be nice.


I thought that buying a house in law school is not such a good idea, since you'll likely just barely pay off interest by the end of three years, and be left no different than paying rent for three years, except you'll be stuck with a house. No?



In some cases yes. With two roomates paying rent, I will just about be living there for free. So even if I do break even on the house after 3 years, I will have still paid very little to no rent at all for three years. Beats paying rent for 3 years and have no shot at getting it back. Worse case, I cant sell the house.. But i should still be able to rent it out in a college town after I leave. Probably could rent it for more than what the note would be. Its a gamble for sure, but one I am hoping will pay off.

That makes a lot of sense and is a really good idea. Maybe I'll have to get my two roommates to pay rent. Although, I'm not sure how much my one year old could come up with each month...

A12345
Posts: 229
Joined: Fri Dec 24, 2010 3:53 am

Re: Best Way for Parents to Help?

Postby A12345 » Thu Apr 28, 2011 6:08 pm

jdl239 wrote:
AP-375 wrote:
jdl239 wrote:My dad is helping me out by simply co-signing on a house with me and thats it. If all goes right, I will have two roommates. I can give them a better deal on rent than they would be able to get anywhere else in town and it would save me anywhere from $15-25k in loan money for rent. Plus the equity I would be building in the three years while Im in school is going to be nice.


I thought that buying a house in law school is not such a good idea, since you'll likely just barely pay off interest by the end of three years, and be left no different than paying rent for three years, except you'll be stuck with a house. No?



In some cases yes. With two roomates paying rent, I will just about be living there for free. So even if I do break even on the house after 3 years, I will have still paid very little to no rent at all for three years. Beats paying rent for 3 years and have no shot at getting it back. Worse case, I cant sell the house.. But i should still be able to rent it out in a college town after I leave. Probably could rent it for more than what the note would be. Its a gamble for sure, but one I am hoping will pay off.


Those are some pretty lofty assumptions. Don't forget the costs associated with owning a house that are generally not associated with rent.




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