1. Housing Options

2. Your Lifestyle and Choice of Housing…
How does your lifestyle affect your choice of housing?
Finances play an important role in housing decisions.
One major factor you will need to consider when making housing decisions is your lifestyle.
Way you choose to spend your time and money
Your lifestyle will determine several housing decisions:
How close to work you want to live
How long you plan to stay in one place
How much privacy you would like to have

3. Opportunity Costs of Housing Choices
What are some opportunity costs to consider when purchasing a home?
Buying a handyman’s special – home that is priced lower because it needs repairs and improvements
Renting an apartment may give you more mobility, which is the ability to move easily from place to place but you give up tax advantages
Can’t only look at the benefits you have to consider what you will be giving up:
Time
Effort
Money

4. Renting vs. Buying Why would you rent a home if you could buy one?
Renting is a good choice for young adults who are beginning their careers.
It appeals to people who want or need mobility.
Renting is a good choice for people who do not want to devote time or money to maintenance.
Renting can be cheaper, it appeals to people whose funds are limited.

5. Renting vs. Buying Owning property also has advantages
Buying a house gives the owner privacy and some freedoms that may not be available to a renter.
No pet restrictions
Larger gatherings
No renovation restrictions
Costly but it has financial benefits
Tax advantages
Value may increase (good long-term investment)

6. Evaluating Housing Alternatives
Advantages
Disadvantages
Renting an Apartment
Renting a House
Owning a House
Owning a Condo

7. Evaluating Housing Alternatives
Advantages
Disadvantages
Renting an Apartment
Easy to move
No tax advantage
Low maintenance responsibility
Limitations on activities
Low financial commitment
Less privacy
Renting a House
See above
Higher utility expenses
More space
Owning a House
Pride in ownership
Financial commitment
Plenty of space
High living expenses
Tax benefits
Limited mobility
Owning a Condo
Fewer maintenance costs
Need to get along with others
Access to recreation
Limited space

8. Housing Information Sources
Where can you research housing options
Libraries
Newspapers
Internet
Friends and Family
Real Estate Agents
Government Agencies
HUD (US Department of Housing and Urban Development)

9. Renting a Residence Selecting a Rental Unit
What should you know before signing a lease?
“3-bdrm apt., a/c, w/w carpet, pvt back ent, $800 + utilities, ref reqd”
Tenant – person who pays for the right to live in a residence owned by someone else
Landlord – person who owns the property that is rented.

10. Size and Cost Two-story house High-rise building Apartment complex
Contain separate living units
Studi0 (efficiency – one room)
1 to 3 bedrooms
1 + bathrooms (1/2 bath – sink and toilet)
On-site conveniences
Swimming pool
Tennis courts
Laundry facilities
Gym

11. Selecting an Apartment
Location
Finances
Building
Layout and Facilities
Near school or work
Near place of worship
Near shopping
Near public transportation
Near recreation
Amount of monthly rent
Amount of Security deposit
Cost of utilities
Length of lease
Condition of building and grounds
Parking
Recreation on premises
Security system
Conditions of hallways and elevators
Access to mailboxes
Size and condition of units
Type and control of heating and cooling
Plumbing and water pressure
Condition of appliances
Condition of doors, locks, windows, closets and floors

12. Buying and Selling a Home
As a homeowner you will gain financial benefits:
Deduct interest charges on your loan payments from your federal income taxes each year.
Property taxes are also deductible
Build equity as home value goes up
Drawbacks
Limited mobility
Financial risk if value goes down
Must pay for all maintenance

13. Types of Housing Single-family Dwellings Multiunit Dwellings Townhouse
stands on separate lot with a lawn and some outdoor living space
Multiunit Dwellings
Duplex – single building divided into living spaces for 2 families
Triplex – 3 families
Townhouse
one of many single-family units attached to other units (own outside entrance)
May have small back yard to use
Monthly fee to cover maintenance, repairs, insurance
Common spaces-lawn belong to association not individual owners
Condominiums
one of a group of apartments that people own instead of rent.
Common spaces-hallways, lawn belong to association not individual owners

14. Types of Housing: Prefabricated Homes Mobile Homes
manufactured and partially assembled at a factory.
Mobile Homes
fully assembled in a factory

15. Hiring a Real Estate Agent
People who arrange the sale and purchase of homes as well as other buildings and land
Negotiate purchase price between buyer and seller
Real Estate services are usually free to the buyer
The agents may represent the sellers, who pay them a commission of 3 to 6 percent when the property is sold.

16. Economy
Economy
The ways in which people make, distribute, and use their goods and services
Supply
- The amount of goods and services available
Demand
- The amount consumers are willing and able to buy