Financing
mba
Selling your home
to finance an MBA
By Ross Geraghty
"The costs involved in an MBA can be astronomical unless you have finance behind you,"
says Neil Beasley, who used his MBA to make a career switch from TV production to a
Public relations role in the pharmaceutical industry. "i’d thought about doing an MBA for
years and decided, as the equity in my property rose, that now was the time to do it. Should
i continue to invest in bricks and mortar or invest in myself?"
B
easley sold his Islington property to help remember that the MBA won’t
finance the costs of an MBA course at pay itself back immediately, as
Cass Business School in London. “I some people think. But it will
decided to invest in myself as it was the more after a few years, and I’ll be able
rewarding path. Given the time again, I to fly higher than I could without
wouldn’t change my decision for the world.” it. I will earn a higher salary but
Professionals are keeping an eye on the also it’s hard to put a price on
housing market in order to finance their personal growth, and nobody can
business school studies - most MBA students in take that away from you, despite
the UK are self-funded and see the lifelong house price fluctuations. The
returns on an MBA outweighing the short to financial side was less important
medium term value of their property, to me.”
particularly as house prices continue to fall. The return on investment
Nunzio Quacquarelli, Managing Director for the top MBA courses is
of the QS World MBA Tour, says, “In an MBA extremely high, with many graduates more guarantee getting this up front was to sell up,
you’re investing in an income stream for life, so than doubling their salaries within a few years not to remortgage or rent the flat out.”
using property equity is the best investment of completing their studies. Added to that, the Like most MBA graduates Beasley regrets
decision, especially as property value is set to flexibility of education, compared to the static nothing about his decision. “I wouldn’t have
decline as interest rates rise.” nature of housing, has an added appeal. swapped the experience for the world. On MBA
Quacquarelli, who sold his own London The latest figures from QS TopMBA courses you mix with a huge diversity of
flat at the peak of the late 80s to finance his World Tour, which surveys thousands of interesting people, and learn detail about
own MBA at Wharton Business School in the aspiring MBAs (visit the tour at New Connaught subjects you’ve always been interested in. And
USA, continued, “It’s a policy more people Rooms, WC2 on March 8th) shows that it is absolutely great for self-confidence too.”
will adopt as soon as they feel prices are at a funding is a major concern of MBA aspirants. And regarding stepping off the housing
peak or a stall.” Some receive funding from their companies, ladder, does he have any regrets? After all, most
With the exception of London, where a followed by a tie-in after graduating. There are advice seems to encourage people on rather
111% supply deficit, coupled with the capital’s also scholarships available to the well-prepared than off it. “I haven’t bought property yet and
successful Olympic bid has created a robust few. However, housing equity is providing a may wait until a crash until doing so. However,
housing market, many feel that rising interest new avenue for students to start thinking about there is an enormous sense of relief and freedom
rates may begin to balance the cost of housing taking the MBA they desire. when you step off the property ladder. You stop
nationally. This will allow those with MBA Says Neil Beasley, “There are other costs looking at house prices all the time and
aspirations to cash in on their properties and that you have to consider, such as the materials worrying about interest rates and so on. Would
secure higher long-term salaries. and not working for a year, so really you need I have done anything differently? No. I don’t
Neil Beasley counsels, “It’s important to £50-60,000. The only surefire way for me to regret it at all.”
64 TopMBA CAreer Guide
www.topmba.com
TopMBA CAreer Guide
www.topmba.com 65
MBA_SPR09_pp_052-155.indd 64 17/2/09 15:34:45
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