Invest in Property vs. Payoff College Loans

[Eric Slater]

I want to invest in my first property, but I have a significant amount of college loans outstanding. Does anyone have any advice or suggestions related to how I should determine when I should focus on paying down my debt versus investing in my first property?

[Hank A.]

Compare your college loan interest rate to potential returns from investing. Say your loan is at 4%, and you can earn 10% through investments. Use the profits from the investment to pay off some of that college loan. The math will ensure that you will come out ahead. Just be sure to do the math right, and include contingencies in your expected rate of return on the investment.