Personal Finance - Housing Options

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Personal Finance - Housing Options

  1. 1. Chapter 21 - Housing Personal Finance
  2. 2. Introduction <ul><li>What makes people select a certain type of housing? </li></ul><ul><li>Initially, people choose to rent or lease </li></ul><ul><li>Then they may decide to buy </li></ul><ul><li>There are many costs involved </li></ul><ul><ul><li>down payments/security deposits </li></ul></ul><ul><ul><li>moving costs </li></ul></ul><ul><ul><li>deposits to get utilities turned on </li></ul></ul><ul><ul><li>items needed for the new place, etc. </li></ul></ul>
  3. 3. Housing Alternatives <ul><li>On-Campus (Dorms) </li></ul><ul><li>Apartments </li></ul><ul><ul><li>Efficiencies </li></ul></ul><ul><li>Duplexes </li></ul><ul><li>Condominiums </li></ul><ul><li>Houses </li></ul><ul><ul><li>2-story </li></ul></ul><ul><ul><li>Ranch </li></ul></ul><ul><ul><li>Bi-Level </li></ul></ul><ul><ul><li>Split Level </li></ul></ul>
  4. 4. Living Arrangements <ul><li>With whom to live????? </li></ul><ul><ul><li>Roommate (Are you compatible??) </li></ul></ul><ul><li>Where to live???? </li></ul><ul><li>What to take???? </li></ul><ul><li>When to move???? </li></ul><ul><li>Group financial decisions-who will pay?? </li></ul><ul><ul><li>Rent, utilities, groceries, household supplies </li></ul></ul>
  5. 5. Renting <ul><li>Advantages </li></ul><ul><ul><li>Mobility </li></ul></ul><ul><ul><li>Convenience </li></ul></ul><ul><ul><li>Social Life </li></ul></ul><ul><ul><li>Lower Living Expenses (Costs shared) </li></ul></ul><ul><li>Disadvantages </li></ul><ul><ul><li>Noise </li></ul></ul><ul><ul><li>Lack of Privacy </li></ul></ul><ul><ul><li>Small Quarters (lack of space) </li></ul></ul><ul><ul><li>Lack of storage area </li></ul></ul><ul><ul><li>Lack of parking space </li></ul></ul>
  6. 6. Rental Application <ul><li>Example </li></ul><ul><li>http://www.freebies4ya.com/agreements/realestate/Basic_Rental_Agreement_And_Or_Lease.asp </li></ul><ul><li>Leases & Month-to-Month Agreements </li></ul><ul><li>Rental Inventory (condition) </li></ul><ul><ul><li>Damaged? </li></ul></ul><ul><ul><li>Dirty? </li></ul></ul>
  7. 7. Landlord/Tenant Responsibilities <ul><li>Landlords need to provide a dwelling that is livable at all times </li></ul><ul><ul><li>Exterior weatherproof </li></ul></ul><ul><ul><li>Floors, walls, ceilings good </li></ul></ul><ul><ul><li>Elevators & stairwells meet safety regulations </li></ul></ul><ul><ul><li>Adequate locks </li></ul></ul><ul><ul><li>Plumbing complies with local & state laws </li></ul></ul><ul><ul><li>Water supply adequate </li></ul></ul><ul><ul><li>Lighting and appliances in good condition </li></ul></ul><ul><ul><li>Everything clean & sanitary </li></ul></ul><ul><li>Tenant obligations are usually stated in the lease agreement </li></ul><ul><ul><li>Abide by agreement </li></ul></ul><ul><ul><li>Pay rent on or before due date </li></ul></ul><ul><ul><ul><li>EVICTION </li></ul></ul></ul><ul><ul><li>Give 30 to 60 days notice of intent to move </li></ul></ul><ul><ul><li>Keep the premises in good, clean condition </li></ul></ul><ul><ul><li>Allow landlord access to make repairs or improvements </li></ul></ul><ul><ul><li>Obey the rules of the apartment complex </li></ul></ul>
  8. 8. Buying a Residence <ul><li>Advantages of Home Ownership </li></ul><ul><ul><li>Tax Savings </li></ul></ul><ul><ul><li>Build “Equity” </li></ul></ul><ul><ul><li>Privacy& Personal Freedom </li></ul></ul><ul><li>Disadvantages of Home Ownership </li></ul><ul><ul><li>Down Payment ($$$$) </li></ul></ul><ul><ul><li>Mortgage Payments </li></ul></ul><ul><ul><li>Closing Costs </li></ul></ul><ul><ul><li>Property Taxes every year </li></ul></ul><ul><ul><li>Insurance </li></ul></ul><ul><ul><li>Utilities </li></ul></ul><ul><ul><li>Maintenance/Repairs </li></ul></ul>
  9. 9. Making “The Move” <ul><li>Moving Costs </li></ul><ul><ul><li>Packing, storing, transporting, loading, unloading, unpacking </li></ul></ul><ul><li>Installation Charges </li></ul><ul><ul><li>Telephone & cable/satellite </li></ul></ul><ul><ul><li>Electricity, water, gas </li></ul></ul><ul><ul><li>One-time fee may be charged that is non-refundable </li></ul></ul>
  10. 10. Summary <ul><li>When you decide to make your first move from your current residence, you have many choices </li></ul><ul><li>Your choice of roommates is important </li></ul><ul><li>There are many advantages & disadvantages to renting vs. buying </li></ul><ul><ul><li>Landlord/tenant responsibilities-treat the property WITH RESPECT. </li></ul></ul><ul><ul><li>Buying a home costs $$$ </li></ul></ul><ul><ul><li>Moving Expenses & installation of utilities costs $$$ </li></ul></ul>

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