HOUSINGHousing options

HOUSING OPTIONS

What should you consider when you evaluate available housing alternatives?Your lifestyle and finances

What are some opportunity costs to consider when purchasing a home?Mobility – ability to move easily from place

to placeWhat are you giving up?

Time Effort money

HOUSING OPTIONS

What are some opportunity costs to consider when purchasing a home? Tax advantages Time

When would buying a residence be a better choice than renting one? Buying is better for people who want stability

and more room than an apartment offers, privacy and the freedom to do as they wish, and tax benefits.

HOUSING OPTIONS

Where can you research housing options? Public library Newspaper real estate section Friends and family Real estate agents Government agencies Internet

RENTAL TERMS

Tenant A person who pays for the right to live in a

residence owned by someone else. Landlord

A person who owns the property that is rented

RENTAL TERMS

Lease A legal document that defines the conditions of

the rental agreement between the tenant and the landlord

If you decide to rent you will have to sign a lease

RENTAL TERMS

Security deposit An amount of money paid to the owner of the

property by a tenant to guard against any financial loss or damage that the tenant might cause.

Security deposits usually equal one or two months’ rent.

RENTAL TERMS

Renters insurance A type of insurance that covers the loss of a

tenant’s personal property as a result of damage or theft.

RENTINGAdvantages

Disadvantages

ADVANTAGES OF RENTING

Mobility Many people prefer to rent because of the ease

and speed with which they can move when a good job opportunity comes along elsewhere. If you are unsure about whether or not you will stay in the same location for a long period.

ADVANTAGES OF RENTING

Convenience Rental properties often have laundry and

recreational facilities Rental units are often conveniently located near

major shopping areas, downtown or business centers

ADVANTAGES OF RENTING

Minimal responsibilities The landlord bears most responsibility for repairs,

maintenance of the grounds, and property management.

Social Life Apartments located in multi-unit buildings offer

the opportunity to meet others and socialize informally, especially those that provide recreational facilities.

ADVANTAGES OF RENTING

Lower Living Expenses Apartment rent is usually lower than the cost of

buying a house. Sharing expenses with roommates lowers

individual costs even more.

DISADVANTAGES OF RENTING

Noise Residents of apartments, duplexes, or

condominiums share common walls with neighbors above, below, or beside them.

Music and conversations of neighbors can be overheard.

DISADVANTAGES OF RENTING

Lack of privacy Because conversations can be overheard through

common walls, tenants often feel that their neighbors know too much about their private lives.

Small Quarters A typical apartment is smaller that some other

housing alternatives. Five hundred to 1,000 square feet of living space

is average for an apartment

DISADVANTAGES OF RENTING

Lack of Storage Area Small size of many apartments means less

cabinet and closet space Few rental properties offer more than a small

amount of additional storage space for rarely used items

DISADVANTAGES OF RENTING

Lack of parking Many rental properties do not provide garages or

off-street parking. Visitor parking is often very limited