Personal Finance Housing Housing Choices Alternatives

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

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

What is a housing arrangement in which you own the apartment or home, but not the common grounds? A. B. C. D. E. A single-family dwelling A multi-family complex A condominium A modular home 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 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. B. C. D. E. Security deposit First month’s rent Insurance Moving expenses Mortgage

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

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 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. B. C. D. E. Down payment Points FHA Mortgage Lien

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