Does anybody know how to use 509 plan to invest in real estate? I have a kid who is two years old; I figure if I purchased the home with 25% down in a neighborhood I am already investing in (put down ~60K), I can then sell the house 16 years later when he's ready for college tax free. Is this something that can be done?
I don't have enough funds to pay cash for the property.
Below, is an old post with some excellent comments on your inquiry.
Thank you Linval for the link. I was more interested in whether it is possible to invest in Real Estate within the 529 plan, i.e. similar to using self-directed IRA to invest in Real Estate. I am not so much interested in whether to use a 529 plan or to invest in Real Estate using the conventional method. Due to the lack of response, I guess it is not possible to invest with 529 plan.
I am not aware of any firms that offer a self-directed 529 plan. There are self-directed ESA accounts, but that is a different vehicle.
529 plans are state specific so no they cannot be invested in real estate. Look into opening a ROTH IRA for him provided he does earned income work (e.g., modeling).