Personal Finance Housing

Housing Choices Alternatives Decision-making model

Housing Choices Alternatives Stay at home

What do you think? Discussion What are the advantages of leaving home to live on your own? What are the disadvantages of leaving home to live on your own?

Housing Choices Alternatives Live in a dorm (college)

Housing Choices Alternatives Move on – estimate cost

Housing Choices Types of Housing Single family One family dwelling in which you do not have other dwellings connected to yours.

Housing Choices Types of Housing Multifamily – Condominium You actually own your part Of the complex but pay monthly fees for the upkeep of the grounds.

Housing Choices Types of Housing Multifamily – Apartment building You do not own your dwelling. You are not responsible for the upkeep of the plumbing, heating etc….

\\ Housing Choices Types of Housing Multifamily – Townhouse:multi leveled unit(has an upstairs and down stairs. – Duplex two dwellings that are connected. One family lives on one side and another family lives on the other side. There is a wall in between the 2 sides.

Housing Choices Types of Housing Multifamily – Manufactured home these are built at a factory and moved to the location that the family will be living Modular Mobile

What is a housing arrangement in which you own the apartment or home, but not the common grounds? A.A single-family dwelling B.A multifamily complex C.A condominium D.A modular home E.A dormitory

What is a housing arrangement in which you own the apartment or home, but not the common grounds? A.A single-family dwelling B.A multi-family complex C.A condominium D.A modular home E.A dormitory

Housing Choices Renting Advantages of renting – Flexibility to move quickly – No down payment ($) – Lack of responsibility No maintenance – Grounds / driveway – Interior plumbing, etc. Do not own home

Housing Choices Renting Disadvantages of renting – Can’t change structure – Possibility of poor landlord service – Less privacy – No equity

Housing Choices Renting Roommate? – Advantages Share rent Enjoy friendship Share responsibilities – Disadvantages Live with an opposite (clean vs. messy, etc.) Lack space Be left holding the bag (financially)

Housing Choices Renting Roommate – Finding one College swap board Friends Friends of friends Newspaper

What do you think? Discussion What would you like about having a roommate? What might you dislike about having a roommate?

Housing Choices Renting Cost of renting – Security deposit – First and last months’ rent – Moving – Insurance (renters’)

Housing Choices Renting Legal concerns – Lease – Care of premises – Legal rights – Fair Housing Act

Housing Choices Renting Housing subsidies

Which of the following is not a cost of renting an apartment? A.Security deposit B.First month’s rent C.Insurance D.Moving expenses E.Mortgage

Which of the following is not a cost of renting an apartment? A.Security deposit B.First month’s rent C.Insurance D.Moving expenses E.Mortgage

Housing Choices Buying a Home Advantages – Freedom to change structure – Privacy – Equity – Tax deductions

Housing Choices Buying a Home Disadvantages – Selling house – Decline in value – Maintenance – Down payment (10–30%) – Property tax

What do you think? Discussion © EMC Publishing, LLC What would you say is the biggest advantage of owning a home? What is the biggest disadvantage? Do you think everyone wants to buy a home? Why or why not?

Housing Choices Buying a Home Obtaining financing – Mortgage Fixed rate and adjustable rate – Preapproval – Loan application fees – Points – Government financing FHA and VA – Types of mortgages

Housing Choices Buying a Home Securing a loan – Collateral / lien – Foreclosure

Housing Choices Buying a Home Real estate agent – no cost to the buyer Location, location, location Offer Counteroffer Purchase agreement Escrow account

Housing Choices Buying a Home Walk-through inspection – Check basement for signs of water Pest and other inspections

Housing Choices Buying a Home Closing costs

Housing Choices Buying a Home Deed Keep it in a safety deposit box with other valuables.

What is the amount called that you pay to obtain a low interest rate from a financial institution? A.Down payment B.Points C.FHA D.Mortgage E.Lien

What is the amount called that you pay to obtain a low interest rate from a financial institution? A.Down payment B.Points C.FHA D.Mortgage E.Lien