I recently had lunch with a good friend of mine who’s about to have a baby girl. Through the course of our conversation I said, “Have you ever thought about buying a house for your baby?”
There was a bit of an awkward pause, and she responded, “What do you mean?”
I then started to tell her about the concept of buying a rental property for your child as a legacy asset. It could be used to pay for college. It could be a place to live when they turn 18 (or 21). It could be sold to launch a business, or it could be held as a rental.
Most new parents I know have an existential moment pretty early in the pregnancy where they wake up in a cold sweat worried about how they will pay for it all.