1. Chapter 7 Housing Finances
Personal Finance
Chapter 7
Housing Finances

2. Objective
Evaluate housing alternatives

3. Question What things do you consider when deciding on housing?
What Opportunity Costs are there to consider?

4. Your Lifestyle and Choice of Housing

5. Renting versus Buying Renting Buying Good for young adults
Good for people who like mobility
Good for people who don’t want to spend money and time on maintenance
Good for people with a limited budget
Good for people who want stability
Good for people who enjoy privacy
Tax benefits
Pride of ownership

6. Handyman’s Special
A home that is priced lower because it needs repairs and improvements

7. Lifestyle
The way a person chooses to spend his or her time & money

8. Mobility
The ability to move easily from place to place

9. Renting an Apartment
Advantages: Mobility, low maintenance and responsibility, low financial commitment
Disadvantages: No tax advantages, limitations on activities, less privacy

10. Renting a House Advantages: Easy to move Low maintenance More space
Disadvantages:
Some limitations
No tax advantages

11. Owning a House Advantages: Pride of ownership Plenty of space
Tax benefits
Disadvantages:
Financial Commitment
High living expenses
Limited mobility

12. Owning a Condo Advantages: Pride of ownership Fewer maintenance costs
Tax benefits
Access to recreation
Disadvantages:
Financial Commitment
Less privacy
Get along with others
Typically smaller
Hard to sell

13. Renting Your Residence
Tenant: The person who pays for the right to live in a residence owned by someone else
Landlord: The person who owns the property
What do you look for when deciding to rent?

14. Lease
A legal document that defines the conditions of a rental agreement between a tenant & a landlord

15. Sublet
To have a person other than the original tenant take over a rental unit & payment for the remaining term of the lease

16. Costs of Renting What impacts price? Location and size
Biggest expense: Rent and utilities
Security Deposit: amount of money paid to the owner go guard against financial loss that the tenant might cause. Usually 1 or 2 months rent
Renter’s Insurance: covers the loss of tenant’s property as a result of damage or theft

17. Ticket Out What type of housing would you prefer to have and why?
Would you want to live in a urban or suburban setting?

18. Apartment Search Activity
Complete Apartment Search Activity sheet distributed to you
Complete ALL aspects outlined on sheet
REMEMBER: Counts as a QUIZ grade