| Question about selling land and reinvesting the money |
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Manny
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 30 Jan 2006
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| Question about selling land and reinvesting the money |
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I have some questions that I hope someone will be kind enough to help me with.
Seven years ago I purchased 20 acres of property in Goldendale, Washington for $37,000. It is my intention to use the proceeds from the sale of this property to fund my children’s college educations. They are ages 9 and 11.
I recently spoke with a real estate agent who believes that I can sell this land for $85,000. She has suggested that I carry a 10 year loan at 7% with a 20% down.
So my question is, of the three options, which should I take?
1. Don’t sell the land until my oldest son is ready for college in 2014?
2. Sell the land now for cash, and immediately move the cash to the Oregon College Savings Plan? (I am an Oregon resident) Can I write off the capital gains from the sale of the land if I do this?
3. Carry the loan and deposit the mortgage payment into the children’s college savings plans each month?
Even though we do not use this land for anything, it does bring me a sense of security, so I am leaning toward holding onto it for now, but if there were a clear reason to do otherwise, I would do it
Thank You
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Mon Jan 30, 2006 5:18 pm |
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MattL
Senior Member
Cash: $ 46.85
Posts: 234
Joined: 25 Jun 2005
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I would hold on to it and open an ESA (Education Savings Account). You can put $2K in per year per child. By 2014 you will have $32k plus whatver your investment makes, tax free.
You may decide by then that you don't need to sell the land to pay for college. That way you will have more options (and more money!).
Debt Elimination
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Tue Jan 31, 2006 6:42 pm |
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