the finances of housing business and personal finance chapter 7
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The Finances of Housing
Business and Personal FinanceChapter 7
Advantages• Easy to move• Low maintenance
responsibility• Low financial
commitment
Disadvantages• Few Financial Benefits
– No tax advantage• Limitation on activities
– Less Privacy• Legal Concerns
– Lease• Sublet????
Renting an Apartment
Advantages Disadvantages
• Easy to move
• Low maintenance responsibility
• Low financial commitment
• More Space
• No tax advantage
• Some limitation on activities
• Higher utility expenses
Renting a House
Advantages
Disadvantages
• Pride of Ownership
• Plenty of Space
• Tax benefits
• Financial commitment
• High living expenses
• Limited mobility
Owning a
House
• Advantages • Disadvantages• Pride of Ownership
• Fewer maintenance costs or responsibilities than a house
• Tax benefits
• Access to recreation and businesses
• Financial commitment
• Less privacy than in a house
• Need to get along with others
• Typically small and limited space
• May be hard to sell
Owning a Condominium
• Advantages
• Disadvantages
• Less expensive than other ownership options.
• May be hard to sell
• Possible poor construction quality
Owning a Mobile Home
Types of Housing
• Single Family Dwellings• Multiunit Dwellings
– Duplexes– Townhouses
• Condominiums• Cooperative Housing• Manufactured Homes
– Prefabricated– Mobile Home
HousingHow much can you afford?
• Price and Down Payment– Financing
• Points• Interest Rate
– Mortgage– PMI (Private Mortgage Insurance)– Closing Costs
• Size and Quality
Your lifestyle will affect the type of housing that you
choose!
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