© family economics & financial education – revised november 2004 – housing unit – renting...
TRANSCRIPT
© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 1Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
How to Locate A Living Space
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 2Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Introduction Needs and Wants Determining Housing Costs Housing Options Locating a Living Space Reading an Ad for a Living Space Rental Search Checklist Completing an Application form
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 3Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Group Wants & Needs
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 4Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Needs and Wants Space Location Amenities Parking Miscellaneous
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 5Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
What spaces are most important to you?
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 6Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Space How many rooms are needed?
Will there be roommates? Monthly charges are typically more affordable when people share the cost
Size of the rooms (total square feet) Number of bathrooms Garage
What is the size of the garage? Storage Space Yard
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 7Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Located near what?
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 8Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Location Distance from work, schools, shopping,
laundromat, family, friends Consider the walking/biking distance from
school , work, recreational areas, shopping Minimize transportation expenses
Neighborhood Safety Quality of schools, streets, and homes Presence of police, fire, and emergency services
Geographic location Urban, suburban, rural
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 9Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
What “extras” are important?
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 10Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Amenities Amenities include utilities like heat, electricity,
garbage, water, and other features like Internet and telephone service
Heat- Examples include electric, gas, and radiant Different heating sources cost different amounts of
money Power- Examples include solar, gas, electric, and wind
Different power sources cost different amounts of money and have different affects on the environment
IMORTANT: Who is responsible for paying each bill? Landlord is the person who owns the rental unit Tenant, or renter, is the one who rents the property
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 11Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Amenities Amenities also include access to swimming
pool, golf course, laundry facilities, tennis courts, open common areas, club house, playground areas, conservation areas, walking trails, boat slips, marina access
IMPORTANT: Who is responsible for the upkeep and maintenance of these areas? Homeowners association- monthly dues amount? Condo owners – monthly dues amount? Individual homeowners
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 12Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
What are Your Parking Requirements? Let’s suppose there are two people living in
a space. Unfortunately, there is only one covered
parking spot next to the living space. Who gets the covered parking and who has
to park a block away on the side of the street?
The amount of available parking spaces may become more important when considering this scenario.
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 13Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Parking Location/size Covered areas, private, security Number of vehicles allowed (for self and
guests) Permits needed Fees charged
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 14Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Miscellaneous Washer and dryer
Are hookups or machines provided? Private or common area
Dishwasher Are hookups or machines provided?
Smoking Pets Fireplace Hot tub Snow removal and lawn maintenance
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 15Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Determining Housing Costs
Important to choose a rental unit one can afford Create a spending plan
Spending plan is a financial statement used to assist in money management and track income and expenses
Based on this, determine what can be spent on rent and amenities
Rent is the payment made in exchange for occupying another’s land or property, usually paid to landlord or property manager Property manager is a person who works for the
owner to find/screen tenants, collect rent, maintain property, and respond to tenants’ needs
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 16Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Is it Really Affordable? It is important to choose an affordable
living space. Remember that while a person may be
able to afford the rent and other costs associated with a living space, they may not have extra money to go to the movies or even buy groceries for example.
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 17Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Housing Costs General rule: Households should spend 30% or
less of their net income on housing, not including amenities
Things to keep in mind when determining costs: Determine maximum monthly amount
(including amenities) you can afford and stay below that
Compare the costs of living spacesOne space may not include amenities in the
rent, where another space will. Add in expected costs to compare the two
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 18Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Housing Costs Compare one time costs, like security
depositsSecurity deposit is money paid in
advance of moving in to be used for repairs beyond normal wear and tear
Compare repeated costs - have to drive 20 miles one way to work, gas costs, wear & tear on vehicle,
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 19Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
What are the housing options? Brainstorm group
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 20Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Housing Options Houses-Single housing units usually
surrounded by a yard, varying in size Apartments-Sets of rooms on one floor or a
building used as separate residence spaces Studio apartments-Usually one room with
separate space for kitchen and bathroom, not divided rooms
Mobile homes-Manufactured house that is capable of being moved
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 21Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Housing Options Condominiums-Single apartment in a
multiple housing structure, that can contain multiple stories, garages, and yards
Duplexes-Two apartments, situated side-by-side, sharing common wall
Rooms-Private rooms located within another structure
Residence halls-Usually located on college or universitycampuses and available for attending
students
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 22Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Locating a Living Space
What sources can help you to find a living space?
Friends and family members- If in the area you wish to inhabit
Newspaper Classifieds-Obtain these through newspapers as soon as possible for increased opportunities for the living space you want
Bulletin boards-Homeowners and property managers post listings this way
Internet-Great way to start searches from distant locations
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 23Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Locating a Living Space
Yellow pages- Search under “Apartment Rentals” and call apartment or property management offices
Local Chamber of Commerce- Valuable resource when relocating
Rental agencies/real estate agencies- Hold postings for rental spaces
In front of living space- Owners often post a sign when spaces are available
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 24Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Rent vs. LeaseBrainstorm: Why do some people
buy while others lease?
List advantages of renting……..disadvantages
List advanatages of buying……..disadvantages
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 25Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Rent Advantages & Disadvantages Rent: Advantages
Mobility Maintenance by
landlord Less commitment Usually costs less Less risk More time for
recreation, etc since landlord maintains property
Rent: Disadvantages Build no equity Remodel/decorating
limitations Rent increases
possible Lease non-renewals No pets Limited space No tax breaks
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 26Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Purchase Advantages & Disadvantages Ownership:
Advantages Build Equity Can
remodel/decorating No worry of lease
non-renewal Pride in ownership Less limitations –
pets
Ownership: Disadvantages Less mobility Payments higher than
rent; Less money for other expenses
Budget strained Maintenance required Long term commitment Projects cost
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 27Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Reading an Advertisement For
a living Space Abbreviations are often used in
advertisements for living spaces BR-Bedroom BA-Bathroom W/D-Washer/Dryer (may be hookups or
machines) DW-Dishwasher FROG-Finished Room over Garage
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 28Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Reading an Advertisement
NS- No smoking NP- No pets (may be negotiable-you
may pay more if you have pets) F/P-Fireplace AC- Air conditioner W/S/G-Water, Sewer, and Garbage
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 29Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Brainstorm Search Check List
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 30Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Rental Search Checklist
Helpful to take a checklist of desired features while walking through rental units
Makes it easy to remember what was liked and disliked from place to place
May be difficult if one is not able to take a walk through
A person may be able to take a virtual tour or model and use the checklist
Sample Check List: Number of rooms Windows in BR, BA Overall space
(square footage) Closets Appliances Air conditioning Pets restrictions
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 31Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Completing an Application Form
If an individual locates a living space they would like to rent, they should complete an application form
An application form is a document used to determine if a person’s credit history, financial stability, and references make them a worthy candidate
All information on this form should be truthful, factual, and answered completely
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 32Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Application Form Before returning the application, a
person should ask some questions: Is there an application fee? If there is a fee, how much is it? Will this fee be returned if the application is
denied? Is there a waiting list? If there is a list, what is the estimated time
wait?
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© Family Economics & Financial Education – Revised November 2004 – Housing Unit – Renting vs. Owning a Home – Slide 33Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Conclusion Prioritize needs and wants Determine housing costs Locate a living space Get ready to move in!