Housing Alternatives

Module 10.1

Housing Alternatives Apartment: a unit of rooms you rent to live in where there is more than one unit in the building

House: a single dwelling that can be rented or purchasedVOCABULARY

RENTINGReasons to rent:Less expensive so easy on your budgetMinimum amount on maintenance owner responsible to fix and replace things that belong to the propertyEasy to relocate when lease is finishedMay provide extras for your use like swimming pool, exercise room, laundry room, and special parking areathe opportunity cost is a lack of privacy

HOUSEAll range of sizes and pricesPrivacy

To own your home there is:A down payment to buyYard work like mowing the lawn and keeping up the gardenCost of maintenance repairs to the inside and outsideIf you want to sell the home, you must find a buyer

Module 10.2

Renting an Apartment

VOCABULARYLandlord: person who owns and rents property to anotherLease: a written contract between the landlord and the tenant stating the responsibilities and terms of both parties Rent: the amount you pay to occupy a house or apartment you do not ownTenant: the person who signs the lease and pays the rentSecurity deposit: an amount of money you put down when renting that is held for purposes such as cleaning and damage repairs when you move out

Advantages & Disadvantages to RentingSmaller living space that is easier to manageLittle to no maintenance costs or work inside and outsideEasier on the budgetEasier to move to a new place once lease is upLack of privacyLack of control over the property (cant paint walls or decorate extensively)No pets allowed in many casesNoise rules in placeControls over personal behavior

Reading a LeaseThings you should find on a lease:Name of landlord and how to contact themList of ALL roommates living in the apartmentEXACT address of the apartment you are rentingExact amount of the rent, how often and the date the rent must be paidListing of any additional feesListing of any services provided by the landlordThe amount of the security deposit, what will be deducted from it, and how any remaining amount will be returned to youAny policies and restrictionsStart and ending dates of the leaseLandlords right to enterEVERYONE listed as a tenant on the lease MUST sign

NEVER SIGN A LEASE UNLESS YOU HAVE READ IT COMPLETELY AND Understand aLL OF IT!!! Module 10.3Buying a House

VOCABULARYDown payment: the amount of money you must supply when buying a houseEquity: the difference between how much your home is worth and how much you owe on itMortgage: the amount of money you borrow from a lender to pay for a house or propertyHouse poor: when your house payments are too high for you to afford and you are finding it hard to pay your billsMortgage (or loan) fraud: when you lie on your mortgage application. NEVER LIE ON ANY LOAN APPLICATION IT IS A CRIME!Mortgage broker: The person who brings together the buyer and the lenderCollateral: something of value that is a guarantee you will pay back a loan

Advantages & Disadvantages of Owning a HomeBUILDS EQUITYPrivacy and securityCan decorate and remodel as you pleaseCan deduct mortgage interest from income taxes Requires a down payment to buy usually 20%Must secure a mortgageMust purchase insuranceMust pay for all living expenses Must do the maintenance and repairs and pay for themMust do the yard work and gardeningMay not be able to sell it if you have toHousing values could go down causing you to lose money

MortgagesAlways shop around for the best interest rate.If possible, get a preapproved mortgage. This will give you a limit as to how much you can spend.The bigger your down payment, the smaller your mortgage so the smaller your mortgage payments.Making extra payments or higher payments to your mortgage will shorten the amount of time you will have to pay on it.Keep your mortgage payments within your budget. Only borrow what you can afford.

Real Fixer Upper

Complete with ghosts to scare and delight!