Take Charge of Your �Changing Housing �Wants and Needs
Steve Schlichtenmyer
Kevin White
June Williams
A Proposal for an e-Learning Module for the
United States Marine Corps
Created for Financial Independence Training
How
Our
Money
Empowers�
Imagine you in the future
Housing situations
Choose a practical location
Hidden Costs of renting
How much you can spend
Housing Types
Work with your NCO
Terminal Objective: Delay gratification and make practical housing choices now, so later in life you will be empowered to live how you really want.
Changing health
Changing jobs and income
Family
Personal budgeting
Housing plan
What you can spend now
Long-term effects
Barracks
Temporary housing
Long-term housing
Affordability
Proximity/Commute
Neighborhood/Crime
Lease terms
Utilities
Amenities
& Facilities
Role of NCO
Get squared away
How to consult with NCO
Prepare housing plan
Content Map
Housing plan
Housing plan
Housing plan
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Introduction:
You will be introduced to Donnie, a marine who is celebrating his 40 year boot camp reunion.
At each stage of his life, Donnie made decisions that impacted his financial empowerment.
In this lesson, Donnie describes his changing housing wants and needs at each stage.
You can explore his housing options, then go back in time to help him make better choices.
Welcome to H.O.M.E.
Your changing housing wants and needs
Begin module
Explore menu
Your housing plan
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Welcome to H.O.M.E.
Learning objectives
At the completion of this training module you will:
Be able to identify the costs and benefits associated with different housing types.
Be able to select the most financially beneficial housing types that align with your deployment status and stage of life.
Be able to explain these principles as you create your personal housing plan, which you can share with your command financial advisor.
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Meet Donnie. It’s time for his 40 year Marine boot camp reunion. His buddies planned their lives wisely and are financially secure.
Donnie is struggling financially. He wishes he could go back in time and make better housing choices at key stages of his life.
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18-25 years
26-35 years
Over 50 years
36-49 years
Click Donnie’s face at different stages of his life to learn about his changing housing wants and needs.
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22 year old Donnie
Audio dialogue:
Man, I can’t wait to get out of these barracks! The barracks here on base are full and they approved my package to get BAH and live off base. No more field day inspections, my own privacy, I can live the way I want! I could rent an apartment, mobile home, or even a house! Anything is better than here. I’m sure I can find somewhere fast.
Click Audio
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Plan and save
Ongoing costs
22 year old Donnie
Upfront costs
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Pay yourself first
Do this every month
Stay in Barracks
$38,000 in three years
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Rents vary widely
Rent mobile home
Utilities and insurance
Security deposit
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Garage costs extra
12-month lease
Rent and utilities
Rent apartment
Deployment clause
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Reliable housemates
Split expenses
Rent house
Garage and yard
Private owners
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Donnie’s Epic Choice
Keep Donnie
out of the poorhouse
It’s time to play
Click to Play!
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Click the best choice
Donnie signs a 12 month lease on a one bedroom apartment. Rent is $1100 and he keeps his privacy.
Donnie finds two other marines in the same situation and they go in together to rent a house. Rent is $600 each.
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Did you know?
If you go into debt, and it comes to the attention of your NCO, you will not deploy with your unit!
$1100 plus expenses is too much! Plus, he just learned he will deploy in 8 weeks and now he’s stuck in a lease. He forfeits his deposit.
Epic FAIL!
TRY AGAIN
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Epic WIN!
This will reduce Donnie’s expenses. He can bank most of his pay and begin saving for that down payment on a future home.
Helpful tip!
Before you commit to renting, check first with your network of trusted marines!
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29 year old Donnie
Audio dialogue:�Life is good, and I am so excited about starting a family with by wife. We’ve been talking for a couple of years about kids and now we are both ready. We’ve saved money, but I am kinda worried about our living situation because our one-bedroom apartment is too small. My older buddies with families are living in two story houses with 4 bedrooms and a garage! I bet I can afford a big house, but things might just be tight for the first year or so.
�
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29 year old Donnie
Needs have changed
Rent is wasteful
Need to build equity
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Purchase mobile home
Depreciates in value
VA loan with zero down
No property taxes
Must rent land
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Purchase condominium
VA loan with zero down
HOA fees
Tax benefits
Appreciates in value
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Buy single family home
Appreciates in value
Large garage and yard
Must pay property taxes
Tax benefits
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Donnie’s Epic Choice
Keep Donnie
out of the poorhouse
It’s time to play
Click to Play!
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Click the best choice
Donnie buys a two story house in a nice neighborhood. He has a garage and a yard and plans to remodel.
Donnie really wants a house, but buys a 1,200 square foot Condo instead. It is in a gated complex near the base.
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Helpful Tip!
Watch out for hidden and unexpected costs! Owning a large home can cost substantially more than your monthly mortgage payment!
At this stage, Donnie does not need this much space and cannot afford remodeling. Plus, he will pay higher property taxes.
Epic FAIL!
TRY AGAIN
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Epic WIN!
Donnie should buy the condo. His mortgage payment is low, he still has plenty left to pay HOA fees, and he is building equity.
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Audio dialogue:
My life has changed a lot as I have watched my children grow. I feel like I need to provide for my family by giving them the space we need and deserve. I just wish I had a way to be able to afford a larger house, I mean we need it.
I am earning a lot more than I used to, but I think my income might be at its peak. I need to find a way to make money to help pay for a new mortgage on a bigger house. The bottom line is, I am going to buy a bigger house!
39 year old Donnie
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Peak earning years
Build wealth
Growing family
39 year old Donnie
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Appreciates in value
Must pay property taxes
Need right location
Purchase larger home
High maintenance costs
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Home generates income
Find reliable tenants
Rent original home
Taxes and maintenance
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Donnie’s Epic Choice
Keep Donnie
out of the poorhouse
It’s time to play
Click to Play!
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Click the best choice
The real estate market is down, and Donnie thinks this is a good time to buy that larger home. He sells his first home and buys a larger second home.
The real estate market is down. Donnie thinks this is a good time to buy that larger home. Donnie rents his current home and buys a larger second home.
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Helpful hint!
Always make sure you talk to experienced professionals about your real estate options before making decisions.
By selling his property in a down market, Donnie forfeits equity he may have accrued.
Epic FAIL!
TRY AGAIN
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Epic WIN!
His new higher mortgage payment is offset by rental income until the real estate market recovers. He is building equity for retirement.
Helpful hint!
Be sure to consult with a tax expert as you will need to pay higher property taxes as well as taxes on rental income.
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Audio dialogue:
What a ride it has been! I am becoming a grandfather in a few months. I always dreamed of having a vacation home somewhere. A beach house or maybe a little cabin in Big Bear. I want my grandkids to have what I couldn’t afford for my kids.
I bet if I refinance this house, I can afford to buy something.
50 year old Donnie
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50 year old Donnie
Kids are on their own
Needs to conserve
Avoid risky investments
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Buy smaller home
Appreciates in value
Less costly to maintain
Easy access
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Most affordable type
Manufactured home
Personal property loans
Small down payment
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Donnie’s Epic Choice
Keep Donnie
out of the poorhouse
It’s time to play
Click to Play!
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Click the best choice
Donnie sells his home and buys a single story home in Las Vegas. What happens in Vegas…
Donnie refinances his home, takes the lump sum and puts the money down on a beach house in Cancun.
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This is a risky choice for Donnie so close to retirement. If there is a market downturn, he will still owe the full amount of the second mortgage.
Epic FAIL!
TRY AGAIN
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Epic WIN!
Great choice! Donnie is able to pay off the smaller home and bank the difference in an income fund.
Helpful hint!
The low tax rates in states such as Nevada make it easier for retired seniors to conserve their assets.
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65 year old Donnie
Audio dialogue:
I’m no longer working and I need to begin to be careful with my money so I can have enough to make it through retirement. Even with my wife’s income, there doesn’t seem to be enough. Maybe I can take a second job. I hear Walmart may be hiring.
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Donnie is retired
65 year old Donnie
He’s out of cash
Donnie needed a plan
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Make epic choices…
Create your housing plan today!
Click the H.O.M.E. housing plan document below and carefully answer all the questions. This information will be stored in an external document and sent to the the email you provide. You can choose to share this with your command financial advisor.
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Main Menu: Click to explore
Housing options
Play the game
4 stages of life
26-35 years
Buy
18-25 years
Rent
Over 50 years
Downsize
36-49 years
Grow wealth
Your housing plan
Buy your first home
Buy larger home
Retirement home
Choose your rental
Mobile home
Apartment
House
Mobile home
Condominium
Family home
Larger home
Rent original home
Smaller home
Manufactured home