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Living on Campus vs Commuting: Which is Cheaper?

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Living on Campus vs Commuting
The price of college tuition is startling and, frankly, stressful for many parents and teens headed to school. That is before they even begin to consider the cost of housing in college, which exceeds $10,000 at many public universities in the United States. What is the difference between living on campus vs commuting when it comes to cost?

How Much Does It Cost to Live on Campus?

The main expense when it comes to living on campus is room and board. This usually includes your lodging and a meal plan for the year. For public colleges and universities, the average room and board fees are $10,440. Private schools charge around $11,890 for room and board, on average.

There is potential for saving money here though. You can pay less for fewer meals each week. Most of the time, college kids don’t even wind up using their meal plans anyway.

Other Miscellaneous Costs of Living on Campus

  • Room and board costs don’t cover 365 days of the year. Dorms oftentimes close during holidays and school breaks. Some schools won’t allow you to stay in the dorm and, if you do, it will cost additional money.
  • If you are aiming to go home over holidays and breaks you’ll also need to budget money for the trip home, whether you’re flying, driving, or taking another type of transportation.
  • Living on campus requires you to spend money on things like sheets, pillows, toiletries, desk and school supplies, hampers, and other items you’d otherwise have in your home. You may also need a mini-fridge, TV, or bed. These things can add up quickly.
  • Students moving from one extreme climate to another may also incur significant costs when it comes to preparing their wardrobe. Moving to a colder climate will require purchases like winter coats, snow boots, gloves, hats, sweaters, warm socks, etc.
  • Although there are free events on campus, there may be some social expenses as well. You may need to pay dues to join a fraternity or sorority. It is also possible you may want to go off campus for social events that may come at an additional cost as well.
  • Most schools also require you to pay a fee for parking on campus. Depending on the school, this can cost hundreds of dollars per year.
  • The school may also require you to pay a health fee for providing on-campus health care.
  • You will have an additional line underneath your room and board costs for technology as well. This covers the WiFi, computers, and other available technology on campus you can use.

With each of those costs in mind, students and parents often consider taking out additional loans to cover these costs. However, you should carefully consider the total cost of the loan after interest before taking one out for sorority dues and other miscellaneous costs.

Living on Campus vs Commuting: What They Don’t Tell You

While living on campus may seem expensive, unless you are continuing to live with your parents, commuting is just as much a burden when it comes to your finances. Commuters who rent their own apartment have to stress about paying rent each month. They’ll also likely need to hold a job, spend money on gas traveling to-and-from school, and buy their own groceries. However, if you are planning to stay somewhere off campus free-of-charge and bring your lunch each day, you could stand to save some serious cash.

One spectacular example of this is Katie Thompson. Thompson bunked with family members and lived off campus her entire college career. She paid off her small student loan (only $5,500) within two years of graduating. While she acknowledges that living off campus may have had an impact on her overall experience, Thompson said she can’t argue with the financial stability it has provided her in adulthood.

All in all, deciding between living on campus vs commuting will depend on your own personal needs as well as your financial standing.

Readers, did you live on campus in college? How much did you pay?

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Is It Still Cheaper to Rent Than Buy a Home?

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Is it still cheaper to rent than buy a home

Although the U.S. Federal Reserve has just indicated that it may step up the pace of interest rate increases,  there has yet to be any indication that changes in mortgage availability might change how people decide whether to buy or rent homes.

Choosing whether or not to buy a home is a serious decision. It’s a substantial financial investment. The median home value in the country is around $215,600, and that number is expected to rise by about 6.5 percent over the next year.

But the median rental rate is also substantial, coming it at around $1,650 per month. This means that remaining a renter can also be costly.

Where It’s Cheaper to Buy

However, there are still several cities where it’s cheaper to purchase a home than rent — and in some cases, the savings are so profound, it might even be worth relocating.

One example, according to MarketWatch, is Pittsburg: The average rent is over $1,200 per month, but your monthly mortgage payment would come in less than that due to the overall price averaging less than $150,000.

Another great city for homebuyers: Tampa, Florida, where renting costs at least 80 percent more than buying in most locations.

Believe it or not, even Orlando, Florida is a better place to buy than to rent; it costs twice as much to rent than to purchase a home.

Still, other cities where it’s cheaper to buy: Boston, Detroit, Miami, Philadelphia, Cleveland, Kansas City, Cincinnati, and Houston.

Other Costs for Buyers

However, the decision on whether to buy or rent shouldn’t just concern the property’s sale or rental price, as there are other expenses that come with buying a home.

Appraisals

Usually, you’ll need to pay for an appraisal, which normally runs between $300 and $500. On top of that, you’ll need a home inspection, which typically costs a similar amount.

Property Taxes

Homeowners are also responsible for property taxes. Since property taxes are paid upfront in six-month increments, you may need to reimburse the seller for taxes between the date of closing and the next tax period.

Homeowners Insurance

Additionally, you might have to pay for a year’s worth of homeowner’s insurance in advance, depending on your lender or insurance carrier.

Closing Costs

Closing costs are another expense. Typically, they amount to 2 to 5 percent of the purchase price.

Mortgage Principal and Interest

The biggest ongoing expense of buying a house is the mortgage payment. If you use a loan to finance your purchase, you’ll be paying that debt down over the course of 15 to 30 years, unless you work to pay it off faster. This means you are also paying interest, which is based on your creditworthiness.

Private Mortgage Insurance (PMI)

If you aren’t putting 20 percent down, then PMI is an additional expense you’ll be shouldering. This protects the lender should you fail to make your payments, requiring them to foreclose on a property that is upside down. It’s a monthly expense, tacked onto your mortgage.

Escrow

Often, your lender will also open an escrow account associated with your loan. Typically, this collects additional funds for property taxes and homeowner’s insurance payments. The amount needed to fund the account is attached to your mortgage payment, ensuring you don’t miss a payment or drop your policy.

HOA Fees

If you live in an area with a homeowner’s association (HOA), there’s usually a monthly or annual fee that you’ll need to cover.

HOA fees can vary dramatically, as they only apply to a single community. In some cases, the fee may be $20 a month. However, homes on golf courses, in resort-style locations, or areas like New York City may have monthly HOA fees over $500.

Utilities

You also need to factor in utility costs, especially if you are looking at purchasing a larger home. As a homeowner, you are directly responsible for electricity, water, sewer, garbage, and natural gas, depending on which are on your property. The only exception is with some HOAs, where the association may handle some or all utility costs.

Maintenance

Beyond your mortgage payments, you also have to plan for home maintenance. Unlike in a rental situation, if something breaks in a house you bought, you’re probably on the hook for any repair costs.

Repairs and Upgrades

Plus, you’ll need to plan for significant repairs or upgrades, like replacing the roof when necessary or updating your attic insulation.

Most experts recommend setting aside at least 1 percent of your home’s value each year for repairs and maintenance. However, aiming for 3 percent is wiser, especially if you know a large expense (like the roof repair above) is on the horizon.

Rental CostsIs it still cheaper to rent than buy a home?

In most cases, the cost of renting a home is substantially easier to calculate. Generally, you’ll be responsible for a monthly rent payment and renter’s insurance.

Often, the rent amount is over what you’d pay for a mortgage on a similarly sized property — but that’s because you aren’t directly responsible for a variety of other expenses (at least not directly), which are broken out above.

Landlords generally pad the rent to make sure that they can manage repair costs and make a profit. In some cases, utility costs are also part of the rent amount if they included.

Do the Math

If you want to figure out if it makes more sense to rent than buy, you’ll need to do some math. Begin by reviewing all of the expenses associated with purchasing a house in your desired budget.

Make sure you include the mortgage payment (including interest, PMI, and the escrow account), maintenance costs, utilities, and HOA fees. Also note any other costs that have to be paid upfront, like appraisal fees.

Next, find a similar rental property. Add the cost of rent, renter’s insurance, and utilities. Then, compare that number to the one associated with buying a home.

So Is It Cheaper to Rent Than Buy?

Ultimately, by making the comparison, you can determine whether it makes more sense to rent or buy in your current area at this specific time. In some cases, you’ll discover that homeownership may be cheaper. Adding to the cost benefits, you get to build equity, which is a nice bonus.

However, renting can be a better financial choice in some cities, so don’t assume that buying always wins out.

Also, market conditions can fluctuate: Even if buying is better today, that doesn’t mean it will be a year from now — for instance, it’s possible that the continued ascent of interest rates might eventually bring about a softening in home price inflation.

If you don’t intend to move forward quickly, you’ll need to look at the calculations again when you actually get ready to buy.

Readers, how have you grappled with the decision to rent or buy? Tell us about it in the comments below.

Read More About Homeownership

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Lawn Care for Extreme Summer Weather

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<img src=" Lawn Care for Extreme Summer Weather.jpg" alt”housewithfrontyardshowinggrass">

Extreme summer weather can wreak havoc on your lawn if you don’t change the way you care for it. You might actually be forced to do something different: For instance, if you live in an area susceptible to drought, local ordinances on water rationing might actually prohibit you from watering your grass.

In some cases, you may even need to revamp your lawn entirely — that is, replant a different variety of grass that can better changed weather conditions.

Preparing your lawn for the kinds of extreme weather conditions that tend to affect where you live — this usually won’t require much work.

Heat Waves, Droughts and Wildfires

Before summer 2018 even officially started, numerous parts of the country already experienced record high temperatures that qualify as heat waves. All forecasts have called for above average temperatures this season.

High temperatures don’t necessarily indicate that a water shortage will occur, but it doesn’t hurt to plan for that possibility.

For example, allowing your grass to grow a little longer can help it retain water. Plus, it creates some of its own shade, helping to keep the ground cooler and lessening the negative effects of evaporation.

However don’t grow it longer if your area has had wildfires in the past.

You might also want to skip fertilizer in periods of extreme heat, it can cause damage.

Watering Strategies

When you do water, make sure to do so only during the very early morning hours — when it’s cooler out, more moisture can be absorbed.

If your area has experienced droughts in previous years, consider updating your landscaping toward more of a desert look, possibly eliminating as much of the grass as possible.

Otherwise, refer to your local ordinances to find out your watering schedule. Then, follow it closely, watering on all of the days you are allowed.

Ideally, you want to use an irrigation system and not sprinklers. Sprinklers are less efficient, so not all of the water may make it into your lawn.

To minimize the risk of fires, clear out brush as regularly as possible. Additionally, if any of your plants die or turn brown, remove them immediately. You also want to rake up fallen leaves and dispose of them. All of these things add fuel to fires.

Hurricanes, Storms and Floods

Hurricanes, tropical storms, and even floods can quickly lead to soil erosion. As the soil is washed away, it destroys your lawn.

Conversely, if you can take steps to thicken your lawn and make it healthier, that will increase the chance it will survive the onslaught of water.

As early in the summer season as possible, fill any bald patches with additional grass. Also plant roots help keep the soil in place so it won’t erode.

You may also want to allow your grass to grow longer before mowing it. This allows the roots to also grow deeper, providing more stability to the soil.

Lawn Care for Extreme Summer Weather

By following the tips above, you can maintain a healthy lawn regardless of any extreme summer weather conditions.

And by starting now, you may even be able to prepare in advance, giving you a head start this year.

Readers, how has the summer sun been affecting your lawn in recent seasons? Do you have other any tips for protecting your lawn during extreme weather?  

Read More About Summer

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Bug Repellents for Your Home and Yard

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As temperatures rise and everyone heads outdoors, bugs are also becoming active. While some pests are simply an annoyance, others carry harmful diseases.

For example, mosquitoes can transmit West Nile Virus, multiple forms of encephalitis, Dengue fever, a range of parasites, and more.

Additionally, allergies to bee stings are fairly common, and certain spider bites have the potential to be deadly.

Whether you want to keep bugs away for your own comfort or for health reasons, using a bug repellent may help. However, you need to choose the right options for each pest to get the job done right.

Bug Zapping Lights

One of the most widely used things for dealing with outdoor insects surrounding homes is the so-called bug zapper. It uses UV light to attract flying pests. Once an insect  lands on the board, the light electrocutes it.

Although a bug zapping light does kill flying pests, it isn’t always the best solution. The light actually attracts more bugs, making them more likely to appear in the area. Remedy this by placing the bug zapper some distance away from where you are — to draw the insects away from where you are hanging out.

Another problem with bug zappers: If there’s a breeze, electrocuted insects’ remains can be flung around the area. That’s all the more reason to place the appliance away from where you hang out (and especially eat).

Finally, keep in mind that bug zappers don’t have any effect on mosquitoes, which aren’t attracted by UV light does not attract them.

Candles and Torches

Candles and tiki torch oil featuring citronella can help repel pests, especially mosquitoes.

However, for citronella to work, the air needs to be fairly still — because its odor is what repels the bugs.

Additionally, it might not be very effective in open areas. However, if you have a screened porch, citronella may do the job on a still day.

Orange or Peppermint Oil

Orange and peppermint oils are natural bug repellents. Plus, they are safe for use around people, making them a viable indoor or outdoor solution.

Take a spray bottle and fill it with water. Add around 10 drops of your selected oil and a couple of drops of dish soap. Shake the bottle lightly to combine the ingredients. Then, spray areas where bugs like to gather, such as eaves, outdoor light fixtures, and porch ceilings.

You can also use these sprays indoors in areas like closets. However, if you have pets, it’s best to stay away from peppermint oil.

Cats are particularly bothered by peppermint oil and could develop lung issues after inhaling it. If a cat consumes peppermint, it can cause upset stomach, liver damage, or even lead to central nervous system problems.

Pest Control Sprays

There are a wide variety of commercial pest control sprays available today, including some natural variants. Some target specific pests, like ants or mosquitoes, while others act on a wider range of species.

If you are looking to buy a commercial product, make sure to read the warning and ingredients labels thoroughly. This lets you know where it is safe to use the spray (such as whether it is suitable for indoor use) as well as the risks of accidental exposure.

If you are worried about any of these risks, opt for one of the more natural remedies mentioned in this article.

Sulfur Dust

If fleas, ticks, mites or chiggers invade your yard, consider sulfur powder. This yellow, smelly element can prevent eggs from these species from hatching. It also emits an odor that may drives the adults out of your yard.

Check the weather forecast before proceeding with sulfur dust: You need to sprinkle or sift it during a period when rain isn’t expected for a few additional days. Yes, your yard will smell for a while, but this can do the job.

It is important to note that sulfur is flammable. That means you don’t want open flames or embers in your yard while the powder is sitting. Postpone any outdoor barbecues or campfires until after the powder has dissipated.

Diatomaceous Earth

For ants, caterpillars, and slugs, try diatomaceous earth. This white powdery substance is all natural and will repel a variety of insects.

It’s typically safe to use around people and animals. However, the dust is actually abrasive, so you don’t want to inhale it. Use a mask while applying the powder and give it a chance to settle into the soil before using your yard.

Bug Repellents for Your Home and Yard

Ultimately, any of the approaches above can help you repel pests from your home and yard.

Just make sure to read any warning labels and always follow the instructions for commercial products.

Readers, which types of bug repellents have you had the most success with?  

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How to Prepare for Summer Rainstorms and Hurricanes

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How to Prepare for Summer Rainstorms and Hurricanes

A hurricane of the intensity of Harvey or Irma can damage anywhere from 25 percent to 90 percent, respectively of the homes after it hits the mainland. With this year’s storm season also expected to be above average in severity, it behooves you to know how to prepare for summer rainstorms and hurricanes.

The impact of these storms on your home can be mitigated if you prepare for them in advance. Right now is the best time to do that, as the season is technically just beginning.

You’ll want to get on this as soon as possible: Meteorologists expect up to 16 named storms, including at least seven hurricanes. With that kind of outlook, here’s how to prepare your home

Reinforce Your Home

Certain parts of your home tend to be more vulnerable to strong winds and heavy rains. If you reinforce these areas, and you improve the odds of surviving hurricanes and storms with minimal to no damage.

Begin by repairing any damage to your roof. Then reinforce it: Secure your rain gutters and downspouts to make sure they won’t be ripped off by high winds. Additionally, clean your gutters and downspouts to make sure that water flows through them freely.

Check your windows to make sure they are sturdy and consider replacing those that don’t feature the latest technologies, like double panes.

Shutters and Doors

Storm shutters can also be beneficial, as long as they securely lock into place over the windows. If you can’t afford storm shutters, have plywood available so you can cover the windows if a storm rolls in.

You can also strengthen your door by improving the hinges and locks. Make sure your door has at least three hinges and that deadbolts extend out at least one inch.

Replace any builder-grade hinge screws with three-inch wood screws to make sure the underlying framing supports the jamb.

Cover Sliding Glass Doors

Also make sure that any sliding glass doors have tempered glass, and cover them with shutters — or plywood if a storm approaches.

Moving onto other areas, look into upgrading your garage door to one made from stronger materials or improved latching mechanisms.

Look for a garage door that is approved for wind pressure and provides measurable impact protection.

Yard Maintenance

Falling tree branches can cause significant damage to your home and property. So trim your trees, making sure the limbs aren’t close to power lines or your roof.

Make sure to remove any dead branches or trees, as a dead tree is more likely to topple in high winds.

Clear away any debris from your property as well. Any object sitting in your yard can quickly become a projectile object if it is picked up and carried by high winds. By removing any items, you decrease the odds that random debris will strike your home.

For similar reasons, consider getting rid of any gravel in your yard — or replace it with shredded bark. It’s substantially lighter, so while it may fly around during a storm, it won’t cause as much damage.

If you have outside wall openings, like vents or outdoor outlets, make sure they are well sealed. Use a high-quality urethane-based caulk to seal gaps, ensuring water doesn’t seep in.

Buy Flood Insurance

Typically, traditional homeowner’s insurance doesn’t cover floods. If you don’t have any flood insurance but live somewhere that may get hit this season, seriously consider paying for it.

Although it isn’t always cheap, foregoing this type of insurance can ultimately be even more expensive. You can’t buy coverage after a disaster strikes, so you’ll want to have it in place before storms come your way.

Flood insurance provides you with funds to help you rebuild and replace your belongings if your home is affected by rainwater, overflowing rivers, and more. If you don’t know where to begin, you can contact your insurance agent. You can also find valuable information about flood insurance on the Federal Emergency Management Administration website.

Create an Evacuation Plan

You’ll want to include in the planning any family or roommates so that you’re ready for all possible emergency scenarios.

Begin by reviewing local government information regarding evacuation areas and current plans. Use that to determine a meeting point in case family members are separated during the storm. Also decide where you might go if you evacuate early — such as the homes of friends and relatives who live outside of the storm areas.

Don’t forget to include pets in your evacuation plan — keep a carrier or leash near the door along with travel-sized pet supplies. Make sure your animal companions have ID chips as well; that way, if they get loose or you can’t retrieve them, you can be reunited after the storm.

Prepare for Summer Rainstorms and Hurricanes

You’ll want to prepare an emergency evacuation kit for these situations — including such things as a first aid kit.

Stock up on bottled water and non-perishable food that don’t require cooking. Make sure you also have pet food and kitty litter or piddle pads available if you have pets.

Once you get started with amassing emergency supplies, it can become an ongoing shopping habit — so you might want to set a budget that you can stick to.

And periodically check to make sure these items are still fresh or working, as the case may be.

If you follow as many of the tips above as possible — and do it soon — you should be ready for any extreme weather that might head your way this summer.

Readers, what have you done to prepare in advance for natural disasters? Or if you haven’t done any of these things yet, what’s kept you from doing so? Please tells us all about it by posting in the comments section.

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The Shocking Ways Climate Change Impacts Real Estate Values

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Climate Change Impacts Real Estate Values in surprising ways
Although the average U.S. home price rose 6.3 percent last year, things played out entirely differently in certain locations — prepare to be surprised by the way climate change impacts real estate values.

Interestingly, some rather surprising supply-and-demand scenarios resulted in the short- and long-term aftermath of different natural disasters in recent years.

Rising Sea Levels

Real estate in coastal areas tends to get people worried about the potential for flooding. Waterfront properties usually cause the greatest concerns among prospective buyers, although neighboring areas can experience some of this effect of climate change.

Between 2011 and 2016, home sales in areas prone to flooding grew around 25 percent slower than nearby properties outside of flood zones.

In Miami, Florida, data suggests that homes that are vulnerable to rising sea levels sold at a 7 percent discount compared to similar properties outside of high-risk areas.

Repairs and Insurance

Part of the lower valuations likely comes from concerns about possible repair costs and personal property damage. A related factor has to do with the expense of flood insurance.

Flood insurance usually isn’t included in homeowner’s insurance policies, instead requiring an additional purchase.

This increases the overall cost of obtaining the home, often in direct  proportion to the risk or likelihood of flooding.

This is especially true anywhere flood insurance is either required by law or a prerequisite of a potential mortgage lender.

Hurricanes Are Another Effect

Interestingly, hurricanes tend to have little impact on real estate values over the long term, although the short term the impact can be significant.

Typically, once an area rebuilds, buyers are willing to overlook the risk if they genuinely want to live near the coast.

However, the short-term impact can be significant in areas where people are less likely to have flood insurance.

Without Flood Insurance

In areas where people are less likely to have flood insurance, more homes end up going without repairs because people can’t afford to rebuild.

This can result in abandoned properties with lingering damages that can drag down the values of undamaged properties nearby.

In Houston, which was ravaged by Hurricane Harvey in 2017, approximately 9 out of 10 homes didn’t have flood insurance.

This increased the odds that homeowners would walk away from damaged properties, leaving them vacant and unrepaired.

Additionally, the length of the recovery plays a role. One report suggests that the full cleanup and rebuild from Hurricane Harvey could take upwards of 20 months.

While peak remodeling hits about three months after the event — that’s the timeline for bank foreclosures — some areas could still appear damaged well into 2019.

Where There Are Wildfires

Meanwhile, the effects of heatwaves and droughts can have an entirely different effect on real estate values. In fact, it can be downright counterintuitive in some cases, such as the areas struck by wildfires during the fall of 2017.

In late 2017, after fires ravaged portions of Northern California, housing prices actually rose. In Sonoma, the median price went up by 6.1 percent. Napa saw even more growth, reaching 7.5 percent, and Santa Rosa saw values skyrocket by 9 percent.

The reason for this actually differs from what happens in coastal areas. Instead, residents who lost their homes to the wildfires and were determined to stay in the area. That wound up shrinking the number of available properties, which in turn intensified demand and opened things up to bidding wars.

Housing Shortages

Before any fires broke out, the area already had a housing shortage; the wildfires only exacerbated the problem. Undamaged homes, in some cases, saw offers as high as $200,000 above the asking price.

However, if a particular neighborhood was caught in the blaze, and a single home was spared, that individual property’s value dropped.

Few people want to live amid burned-out houses, so houses surrounded by damaged or abandoned properties can lose value, typically around 10 percent.

As the neighborhood rebuilds and time passes, real estate prices tend to correct themselves. Within about five years, any discount for being surrounded by burned out homes generally dissipates.

Climate Change Impacts Real Estate Values

Ultimately, climate change does impact real estate values, although that doesn’t always mean they fall, even immediately following a disaster.

That said, it’s wise to consider the risk before purchasing a property and make sure to secure the proper insurance to assist in post-disaster recovery if you choose to buy in a potentially at-risk area.

Readers, did you or someone you know have a home damaged by a disaster? Tell us about it by posting in the comments section beneath this post.

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