Renting Versus Buying

Does renting or buying have less responsibility for maintenance and upkeep?

Renting

Apartments, Houses, or Condominiums? Owned by individuals and common parts of the property, such as the grounds and building structure, are owned jointly by the unit owners?

Condominiums

True or False When making decisions about a place to live, you should determine how much you can spend and stay within your budget.

True

What does the term amenities refer to?

Swimming pools, exercise rooms, etc

What should be a lease before you sign?

Amount of rent and how it must be paid

What is the part of the purchase price paid in cash up front referred to as?

Down Payment

Where should the rights and responsibilities of the tenant and landlord be spelled out?

The lease

What should be purchased by anyone who rents a place to live?

Renter’s Insurance

True/False Everyone wants to own a home.

False

What is known as the money paid to provide some protection for the landlord for damage you made to the apartment, cleanings fees, or other costs?

Security Deposit

If you do not want to do yard work, what should you consider buying?

A condominium

True/False Renting an apartment offers a tax advantage over homeownership.

False

True/False Buying a house offers a tax advantage over renting because homeowners can deduct the interest they pay on a mortgage from their personal income taxes.

True

True/False If you are unsure of your plans after college, you should buy a house.

False

True/False If you are unsure of your plans after college, you should rent an apartment, either on a month-to- month lease or with a lease that she can cancel if relocating.

True

True/False Renting an apartment is a greater financial commitment than owning a house.

False

True/False Owning a house is a greater financial commitment than renting an apartment.

True

What should you do with the inspection form given to you by the landlord?

Complete the form, make a note of needed repairs, sign the form, make a copy for yourself, and return it to the landlord

Who can cancel a month-to- month lease?

Tenant or Landlord

What are some of the costs associated with buying a house?

Down payments, points, and homeowner association fees

What is known as the deposit you pay when making an offer to show you are serious about buying the house?

Earnest Money

True/False When negotiating an offer on a house, your top priority is making an offer that you know the seller will accept without further negotiations.

False

True/False When negotiating an offer on a house, your top priority is making an offer that includes the contingencies and details you want considered.

True

What type of mortgage should you considered?

Fixed rate mortgage

After working on a budget and you are ready to buy a house, how do you know how much house you can afford?

Which is one of the disadvantages of renting?

Finding an apartment that will allow pets

What are some of the closing costs the buyer must pay?

Title Insurance Attorney Fees Survey Costs Points Inspection Fees

What are homeowners responsible for paying?

Utilities Property Insurance Maintenance

True/False Buying a house is the most expensive purchase most people make.

True

What is a good piece of advice for anyone considering buying a house?

Buy a house you can afford

Who pays the utilities when renting an apartment?

Either by tenant or landlord

What percentage of your income is considered good when purchasing a home? (house expense ratio)

28%

How can you reduce your monthly house payment?

Make a larger down payment

If the down payment on your house is less than 20% of the house price, you may be required to pay ____ each month with your mortgage payment.

Private mortgage insurance

Get pre-approved for a mortgage before looking for a place to buy