🏡 Real Estate vs 529 Plans: Why I’m Investing in Property for My Kids’ Future

Originally published on LinkedIn, this article expands on the strategy behind a deeply personal decision I made as both a Realtor® and a parent.

Like many parents, I want to give my kids every opportunity in life. Naturally, that includes education, but more than that, I want them to have options. Not every path is traditional, and not every investment strategy has to be either.

Most people are familiar with 529 plans: tax-advantaged college savings accounts that grow over time and can be used to pay for tuition, books, and other education-related expenses. They’re a solid option, but I chose another path.

I’m using real estate as my long-term savings plan for my children. And here’s why.

📈 The Power of Real Estate: More Than Just Equity

When you purchase the right property in the right market, you’re not just buying a house. You’re creating a tool that appreciates over time, provides tax benefits, and potentially generates income.

With a 529 plan, you contribute money and hope it grows. With real estate, I’m growing equity, collecting rent, and gaining leverage.

Let’s say I buy a rental property in a stable area like Belmont or Foster City. Each month, rent helps pay down the mortgage. In 15 years, I’ve built equity. At that point, I could:

Refinance and use the cash-out funds for college
Use the rental income to supplement tuition or living costs
Transfer ownership to my child as a first asset
Sell the home, ideally at a significant gain

That’s flexibility a 529 simply doesn’t offer.

🧠 How I Structured My Plan

Personally, I didn’t go after a flashy property. I focused on:

Location: a strong rental market
Long-term potential: an area with consistent appreciation
Simplicity: something manageable without huge overhead

I worked with trusted vendors for inspections and management, kept the monthly expenses predictable, and treated it like any long-term investment.

Now, I have an appreciating asset I can use in many ways, not just for tuition. And my kids will grow up seeing that model of how real estate works, how it generates value, and how smart planning pays off.

⚠️ What About the Risks?

I’d be doing you a disservice if I didn’t talk about risk. Real estate isn’t guaranteed. No investment is.

There can be:

Market fluctuations
Unexpected repair costs
Vacancies
Higher interest rates over time

But here’s what balances that risk for me: control. I can maintain the home, choose my tenants, manage the loan structure, and time when (or if) I pull money out. That level of control doesn’t exist in the stock market or a 529.

The key is not to wing it. It’s to go in with a plan and a professional you trust.

🧱 Real-Life Example: The Numbers

Let’s say you buy a $950,000 condo in Redwood Shores with 20% down. Over 15 years, that property appreciates to $1.35M. Even with a modest rental income that just covers expenses, you now have hundreds of thousands in equity.

That equity could:

Pay for a UC or private college education
Serve as a down payment on your child’s first home
Fund a business they want to launch
Be held as a generational asset

You’ve built wealth and more importantly, options.

🤔 Is This Strategy Right for Every Parent?

Maybe not. But it’s a conversation worth having.

If you want:

A flexible alternative to traditional college savings
A plan that could support education, housing, or entrepreneurship
To expose your children to real estate as a wealth-building tool

This might be a fit.

📣 Ready to Explore Real Estate as a College Fund Alternative?

This isn’t a hypothetical for me. I’ve already made the decision. And now, I help other families explore it too.

Whether you’re a first-time investor or already own property, we can walk through the numbers together and map out a path that makes sense for your family and timeline.

📩 vincent@vmartrealty.com
📞 (650) 787-6939

Want to see how this conversation started?
📖 Click here to read the original post on LinkedIn