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Personal Personal FinanceFinance
Housing
Housing ChoicesAlternatives• Decision-making model
Housing ChoicesAlternatives
• 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 ChoicesAlternatives
• Live in a dorm (college)
Housing ChoicesAlternatives
• Move on – estimate cost
Housing ChoicesTypes of Housing
• Single familyOne family dwelling in
which you do not have
other dwellings
connected to yours.
Housing ChoicesTypes of Housing
• Multifamily–Condominium
You actually own your part
Of the complex but pay
monthly fees for the upkeep
of the grounds.
Housing ChoicesTypes of Housing
• Multifamily–Apartment building
You do not own your
dwelling. You are not
responsible for the
upkeep of the plumbing,
heating etc….
\\
Housing ChoicesTypes 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 ChoicesTypes 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 ChoicesRenting
• 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 ChoicesRenting
• Disadvantages of renting–Can’t change structure
–Possibility of poorlandlord service
–Less privacy
–No equity
Housing ChoicesRenting
• 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 ChoicesRenting
• 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 ChoicesRenting
• Cost of renting–Security deposit
–First and last months’ rent
–Moving
– Insurance (renters’)
Housing ChoicesRenting
• Legal concerns–Lease
–Care of premises
–Legal rights
–Fair Housing Act
Housing ChoicesRenting
• 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 ChoicesBuying a Home
• Advantages–Freedom to change
structure
–Privacy
–Equity
–Taxdeductions
Housing ChoicesBuying 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 ChoicesBuying a Home• Obtaining financing –Mortgage• Fixed rate and adjustable rate
–Preapproval–Loan application fees–Points–Government financing• FHA and VA
–Types of mortgages
Housing ChoicesBuying a Home
• Securing a loan–Collateral / lien
–Foreclosure
Housing ChoicesBuying a Home
• Real estate agent – no cost to the buyer
• Location, location, location
• Offer
• Counteroffer
• Purchase agreement
• Escrow account
Housing ChoicesBuying a Home
• Walk-through inspection–Check basement for signs of water
• Pest and other inspections
Housing ChoicesBuying a Home• Closing costs
Housing ChoicesBuying 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
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