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Your Next Home Doesn’t Have to be Forever

By U.S. News & World Report

We may not all have a 30-year plan, but there’s a good chance you have a general idea of how long you plan to be in the next house you buy. If you’re in the five- to seven-year category, you will want to approach both the homebuying and homeownership process differently than someone looking for their forever home. This purchase should provide a strong financial foundation and act as a springboard for increased homebuying power down the road.

So how exactly do you do that? First, you’ll need to choose a home that has a more visible potential for higher resale when the times comes. Then, while creating a personalized and homey feel, you’ll need to focus on projects sure to provide a high return on investment while finding the balance between profit and functionality. By following these simple guidelines you’ll better position yourself to enjoy your home while in it, and sell it for the highest possible amount without having to take on too many last-minute projects.

[See: 10 Ways Millennials Are Changing Homebuying.]

Choosing the Right Home

No matter how long you plan on staying in your house, you always want to make sure you make a strong investment. This not only applies to your monthly mortgage payments and other out-of-pocket expenses, but also to its future resale ability when it’s time to sell.

Everyone is different in their investment strategies and this post is not intended to aid in, or direct you towards, any of these. Whether you’re creating higher equity in your home through a 15-year mortgage or additional payments, or under-buying to allow yourself the ability to save and invest as much as possible. That said, have a plan. Don’t just wing it.

Location, location, location. To focus on investing in your resale ability, begin by concentrating on the one thing you can’t change — the location of the property. Gather as much information as possible by looking to a number of different sources.

Many towns and counties issue master plans which can be accessed online and give a broad view of upcoming projects, like new developments or road work. Be sure to consider not only the pros and cons of the finished product, but how long the project is expected to take and how it will impact your living situation while you are in the home. Fortunately, with a five- to seven-year plan, the scope of these master plans should cover the majority of potential projects that will impact you.

Drive through the surrounding area and check out how many new home communities are being built. While this might show the area to be up-and-coming, it will also bring an influx of both personal and construction traffic and you’ll need to get a feel for whether or not the current and proposed infrastructure is adequate. It also may benefit you to visit the new home sites to find out just how big the projects are — whether they are just building a small subdivision or a full-on planned community.

Investigate the neighborhood. If you’re out viewing the home in the day and feel comfortable enough, talk to a couple of the neighbors or go to the closest park and ask people how they like the neighborhood. Try to gauge whether it is on the up or downswing, and ask if there are any major upcoming changes.

If the house is part of a homeowners or condominium association, be sure to carefully review all associated documents, not only for their rules and regulations, but also for the financial strength of the association as this can impact both your current purchase and the resale down the road.

Know Your Limits. As for the house itself, you will need to ask yourself just how comfortable you are taking on projects. Keep this in mind: Smaller projects generally elicit a higher return on investment. They are less likely to lead to cost overruns and delays. You will have to evaluate both your willingness to put in sweat equity and hire a contractor, versus wanting a move-in ready house that you may have to pay more for.

[See: 10 Tips to Sell Your Home Fast.]

Return on Investment

No matter how much you have, throwing money away is never a good idea. But why should a stronger focus be placed on return of investment with a five- to seven-year home versus a forever home? For the simple reason that most projects will be one-and-done and should a project go south and need to be either fixed or completely redone, you have less time to recoup the cost.

Make wise choices. When you buy a house, you’ll undoubtedly have a long list of items to fix and personalize it so it truly feels like your home.

But how do you decide what and how to improve? Simply imagine you are any professional sports athlete deciding to send a tweet.

Is it going to send your own personal message (in this case, show off your personal tastes and fit your needs) while not coming back to bite you in the short or long term (improving the resale ability of your home)? Not sure whether to push Tweet or not? Just call up the coach (your trusted real estate agent) and get their opinion.

It’s all about the return. According to Remodeling Magazine’s 2015 Cost vs. Value Report, the highest return on investment is likely to be yielded through smaller projects which will enhance the curb appeal of the home, including replacing the front door (101.8 percent), the garage door (88.4 percent), and siding (80.7 percent).

Exterior projects have a great ROI, but simple projects such as painting, decorating, changing handles and fixtures can give the house a personalized facelift without labor costs if you choose to undertake the task yourself.

[See: The Best Apps for House Hunting.]

Find the sweet spot. While you want your house to be aesthetically pleasing inside and out to create both a homey environment while you’re living there and an easier house to sell when the time comes, you also don’t want to overimprove. Take time on the weekends to visit open houses in your neighborhood to see what improvements are generally being made, and then follow the sales online to better judge what is creating the best resale value.

By finding a home with the highest potential for a successful resale in the next five to seven years and creating a plan to complete projects with the highest return on investment, you are sure to enjoy the time you own your home while creating a smoother resale process in the future.

More from U.S. News

10 Tips to Sell Your Home Fast

10 Unorthodox Ways Your Real Estate Agent May Market Your Home

8 Types of Roads That Can Have a Big Impact on Home Sales

Your Next Home Doesn’t Have to be Forever originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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