1. Renting vs. Buying
Daily Objective: Share Universal Design findings. Discuss and analyze factors involved in Renting and Buying homes.
Bell Ringer: Once you leave high school, will you rent or buy a home and why?
Past Due: Questions & Brochure
TODAY: Housing Choices Quiz

2. Review – Quiz Psychological and Physical housing needs
Maslow’s Hierarchy of Needs
Universal Design (7 principles)
Influences on housing
Factors affecting housing choices
Housing choices
Renting

3. Renting or Buying? Reasons for Making Housing Choices:
Personal and financial goals
Personal values and wants
Financial Readiness
Location Preferences

4. Comparison of Expenses:
Renting:
Monthly rent
Security deposit
Utilities
Renter Insurance
Buying:
Monthly mortgage payment
Down payment
Closing cost
Utilities
Homeowners insurance
Real estate property taxes
Maintenance

6. Renting Vocabulary
Renting: Rent is the cost of using someone else’s property.
A tenant, or renter, is a person who rents the property.
The owner of the rental property is the landlord.
A property manager’s duties may include collecting rent and deposits, paying utility bills, performing repairs and maintenance, watching over the property, responding to tenant complaints, assigning new tenants, etc.
Rent is usually due on the first day of each month to the landlord or property manager.

7. Renting Vocabulary
A security deposit is an advance payment to cover anything beyond normal wear and tear on the unit.
A lease is a legal contract between the tenant and the landlord specifying the responsibilities and rights of both parties.

8. Is Renting for me? Complete the Renting Worksheet and turn in
Then look for yourself! Look through housing/renting site for the kind of apartment/rental you would want too/can afford and is practical for you to live in.
Write down all the important information for your apartment… similar to worksheet you just did… but in your notebook
Also list the website you found it at and why this would be an ideal rental for you at this time in your life.

9. Advantages of Renting Low move-in costs Fixed monthly expenses
Easy to move
Location choices (may be close to work or school)
Less maintenance and repair work
Fewer responsibilities
May offer extra amenities such as a tennis court or pool
Less expensive than home ownership
May be able to save for other wants or needs if renting a less expensive apartment
Other expenses may be included in rent payment including electricity, water, sewer, and/or garbage.

10. The downside… Subject to terms of a lease
Rent may change with little notice
Less privacy and transient neighbors
Restrictions on noise level and/or pets
Fewer opportunities to upgrade apartment (i.e. new carpet, paint, or wallpaper)
When leaving a property, no equity is returned as it would be if selling a home;
No tax deductions
May lose rental if the property is sold

11. Owning a Home
A mortgage is a home loan in which the real estate is the collateral.
Collateral is an item promised to the lender if the borrower does not pay back the loan.
- The three main components to a mortgage are the amount borrowed, the interest rate, and the length of the loan.
A down payment is the amount of money paid on the home at the time of purchase.

12. The best part of owning a home!
Build equity which can be borrowed against if necessary
Pride of ownership
Feel more comfortable
More privacy
Stable mortgage payment
More room and storage
Improvement of credit rating
Income tax deductions for property taxes and mortgage interest
Property may increase in value
Home improvements
Pets

13. The NOT so great part about owning a home…
Large down payment
Move-in costs
Insurance costs
Possible for property to decrease in value
Time, money, energy commitment
Repair and maintenance costs
Property taxes can raise substantially
Money is tied up in home
May take several months/years to sell a home if trying to relocate