Financial Priorities: Real Estate Vs. College Education

Is the land developed or just the land itself?? If there is no development, it may not be worth it like you said. Also, if it is in your son's/your name, it could harm him later on getting financial aide for college.
You did not mention exactly where it is in Texas. One word of caution-I live in the area where the EAgle Ford Shale is booming. People who lived here for 50 yrs on the same piece of property that was considered worthless are now making tons of money!!! So double check on the mineral's before not paying the taxes. Also, if you do pay the taxes, spend the money to get the title transferred legally into your name!!! Maybe even do this before you pay!!!

Have you heard of the Texas Tomorrow fund? Can be a way for a win/win for all of you

So essentially your Mother-in-law is trying manipulating her son into paying off her problem with your son's college money. Uuuummmmm, NO! If you pay all those taxes, etc. then you should be able to sell it when you want to. Also if it is 3 acres of unimproved dirt then you will not get an "educations" worth out of it when you do sell. I would put it to your husband very succinctly. No. You are totally logical in this argument. Your husband is trying to make his Mommy happy. He needs to understand that your child is now the priority, not Mommy. She needs to pay her own land taxes and bequeath it to your son in a will if that is what she wants to do. Stick to your guns. cb

I think your mother-in-law is being selfish.

College!!!!

It sounds like your MIL needs bailing out of a piece of property she can't afford to keep and pay taxes on. Your husband will side with her if he has never had the courage to ever tell her no. It sounds like she needs to do the difficult, but smart thing - put it on the market.

Real estate is no longer the investment choice that it was in some states several years ago. If you have to manage it, pay taxes on it (not cheap in TX), then it is a very poor investment. If he really wants the property, he can bid on it from the current owner when he gets old enough to own property.

If she sells it and wishes to invest that money for your son, show her a conservative estimate of what it would be worth when your son hits college age.

I have one out of college and her college debt amounts to $600 a month (and that was with a partial sports scholarship!). My son's debt will be close to that when he finishes in a year and a half. We were only able to save up one full year for both. The food and lodging is what really adds up as they both attended schools away from home.

The government loans are a joke. They charge an arm and a leg to these poor college kids. Financial aid is another joke - whatever you qualify for comes in loans. Our daughter's school helped her a bit when my husband and I were both out of work, but my son's school gave us nothing. I realized that there must be kids out there whose families were even worse off than us at the time.

If your husband won't listen to you, have him talk to a financial adviser. Tell him that you just want him to be informed as neither of you are probably experts in investments.

two pieces of advice:

listen to Dave Ramsey on the radio during the day or in the evening from his website/ podcasts with your husband.
Check out his website and search for questions on college, planning for future and investing in real estate.

Second and maybe more important: you and your husband need to read "Boundaries" by Dr Henry Cloud. Mom is a little too involved here and should not be trying to sway the direction of your families' finances. Perhaps she does this with other things, too?

I would go for the college education. The money you put in now is tax free and he will not owe much on it once he pulls it out. Investing in a property that is in arrears on taxes is a NIGHTMARE! MIL needs to get those paid before you do any kind of investing in the land.

Yes, real estate is a great investment, but, like you said, if it is not in a good area, then it is practically worthless. Tell her you will pay the taxes in arrears, then the land is yours, free and clear, for the price of the taxes and any fees related to that, if they want to go that route.