Chapter 70 HOUSING AND THE CONSUMER

 Single-family home – provides living space for one family. It is not usually connected to any other building and stands on a separate lot. TYPES OF HOMES

 Town house – one of many single-family units attached to other units on its sides. Sometimes shares recreational facilities with other units. TYPES OF HOMES

 Apartment building – a building that contains a number of separate living units. TYPES OF HOMES

 Condominium – one of a group of apartments or town houses that people own rather than rent. Owners agree to pay a monthly service fee to maintain common areas such as lawns and recreational areas. TYPES OF HOMES

 Duplex, triplex, or fourplex – a building that is divided into living spaces for 2, 3 or 4 families. Can be arranges side by side or one on top of the other, but each unit has its own outside entrance. TYPES OF HOMES

 Manufactured home – factory-built house that is moved by truck to a mobile home park or to the owner’s property. TYPES OF HOMES

 No more than 25-28% of your income should be spent on housing – this includes taxes and insurance  You should have money left for the following:  Utilities  Furniture and/or appliances  Food  Clothing  Entertainment  Medical care  Savings WHAT CAN YOU AFFORD?

Renting  Advantages  Convenient  Not responsible for repairs  Leaving is easy  Cheaper monthly payment  Disadvantages  Can’t make changes  Not an investment…wasting money.  May not be allowed to have pets Buying  Advantages  It is an investment  Sense of community  Freedom to decorate or remodel  Pets  Disadvantages  Difficult to move  Responsible for repairs and upkeep  Higher monthly payment RENTING VS. BUYING

 Renting terms:  Lease – a legal contract between the renter and the property owner, usually called a landlord.  Security Deposit – An amount of money paid to the owner of the property by a renter to guard against financial loss caused by the renter.  Buying terms:  Mortgage – a long-term home loan...a bank pays for the home with the agreement that you will pay them back over a period of years. RENTING AND BUYING TERMS TO LEARN