If you were to ask any parent what is their biggest financial worry is, they would all say paying for college. Tuition costs have risen considerably over the years and many parents find it difficult if not impossible to foot the bill for their offspring’s education. Are you in the same situation? You cannot leave it up to your kid to pay for college tuition. Besides the fact that the costs are too high, you want your little darling to focus on studying, and not working. Income and savings are not enough when it comes down to paying for college. So, what are you supposed to do? When you have tapped out all the options, consider borrowing. Many parents do it and there is no shame in taking out a loan. Here is something to think about: take out a loan on a buy to let property. If you have rental property, you should take advantage of it.
What is a loan on a buy-to-let property?
Okay, maybe you have never ever heard about loans on buy-to-let property. What you need to know is that they are effective ways of generating income. You basically release the equity from your rental property. Not only can you get your hands on much needed funds, but also you can do whatever you want with the money. Is that not great or what? Keep in mind that you are required to pay 100 percent out of your pocket and you have nobody to support you. Similar to your mortgage, the loan on the buy-to-let property is secured against the house and the amount of money that you can ask for depends on the equity in the property. Borrowing money for your child’s education is probably the last thing that you want to do, but you have to make an effort. Without a university degree, it will be impossible for your youngster to get a good job.
Getting a loan on a buy-to-let property is not a headache
You have heard stories of people waiting for months to get their credit application approved from the bank. They complete all the paperwork on time and wait for an answer from the financial institution. Just so you know, obtaining a loan on a buy-to-let property is not that difficult. Do you know why? Because you are dealing with a private lender. All you have to do is complete the paperwork that you receive, bring the necessary documents, and get your money. While you do not receive the funds the very same day, it will not take long until you will have them in your possession. What you can be sure of is the fact that it will not be a nightmare. You will get the cash in the nick of time and pay tuition costs. It is tempting to make your kid take out a loan. Do not do this. Your child is at the beginning of the road and the last thing that they need is to be burdened with debt.