To deliver quality at all times, to satisfy customers forever, to quote realistic prices always. In short, this is what Radiant Structures is all about. A company that’s manned by thorough professionals; people who’ve over two decades of experience in property development. At Radiant, excellence stems from its people – skilled engineers, architects, workers, marketing professionals and customer care personnel. Besides the talented workforce, the company is ably guided by its management team headed by Mr. Raghavendra Reddy. A Civil Engineering graduate from Gulbarga University, he has independently handled huge contracting projects – both residential and commercial. Needless to say, at Radiant everyone shares a common passion to deliver products that’ll not just exceed customer expectations, but remain as benchmarks for the industry itself.

1. Renting vs. Owning

2. 1.9.3.G1
© Family Economics & Financial Education – Revised March 2009 – Housing Unit – Renting vs. Owning a Home
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Introduction
 Housing is the largest personal expenditure.
– About 1/3 of a person’s income.
 Choosing where to live is based upon a person’s goals,
values, needs, and wants.
 Places to live include:
– House, apartment, condo, mobile home, etc.

3. 1.9.3.G1
© Family Economics & Financial Education – Revised March 2009 – Housing Unit – Renting vs. Owning a Home
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Reasons for making a
housing choice
 Personal and financial goals
 Personal values, needs, and wants
 Amount of money available for housing costs
 Financial resources and readiness
 Credit history
 Real estate prices
 Location preference
 Expected length of stay in particular place

4. 1.9.3.G1
© Family Economics & Financial Education – Revised March 2009 – Housing Unit – Renting vs. Owning a Home
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Costs of renting
 Monthly rent
 Security deposit
 Utilities – electricity, water, garbage, etc.
 Renter’s insurance

5. 1.9.3.G1
© Family Economics & Financial Education – Revised March 2009 – Housing Unit – Renting vs. Owning a Home
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Renting
 A lease is a legal contract between the tenant and the landlord, specifying
the responsibilities and rights of both parties.
– Identifies the rent amount, security deposit amount and specifications, payment
for utility bills, late payment penalties, length of lease, eviction terms, etc.
– This is between the landlord and the tenant
 Landlord
– Owner of the rental property.
– May perform management duties or hire a property manager.
 Property manager - may charge a fee to the landlord to perform the management
task
– Duties may include:
– May collect rent and deposits, pay utility bills, complete repairs and maintenance, watch
over the property, respond to tenant complaints, assign new tenants, etc.

6. 1.9.3.G1
© Family Economics & Financial Education – Revised March 2009 – Housing Unit – Renting vs. Owning a Home
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Renting continued
 Tenant (renter)
– The person who rents the property.
 Renters are generally
– People who choose not to own a home.
– People who cannot afford to own a home.
 The tenant pays rent to the landlord which allows them to live in
the rental property.
– Rent
 The cost of using someone else’s property.

7. 1.9.3.G1
© Family Economics & Financial Education – Revised March 2009 – Housing Unit – Renting vs. Owning a Home
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Moving into a rental
 Upon moving into a new place, people are usually
required to pay a security deposit and sign a lease.
 Security deposit
– An advance payment to cover anything beyond normal wear
and tear on the unit.

8. 1.9.3.G1
© Family Economics & Financial Education – Revised March 2009 – Housing Unit – Renting vs. Owning a Home
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Advantages of renting
 Low move-in costs
 Fixed monthly expenses
 Easy to move
 Location choices (may be close to
work or school)
 Less maintenance and repair work
 Fewer responsibilities
 May offer extra amenities such as a
tennis court or pool
 Typically less expensive than home
ownership
 May be able to save for other
wants or needs if renting a less
expensive apartment
 Other expenses may be included in
rent payment such as electricity,
water, sewer, and/or garbage

9. 1.9.3.G1
© Family Economics & Financial Education – Revised March 2009 – Housing Unit – Renting vs. Owning a Home
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Disadvantages of
renting
 Subject to terms of a lease
 Rent may change with little notice
 Less privacy and transient
neighbors.
 Restrictions on noise level, pets,
etc.
 Fewer opportunities to upgrade
apartment such as new carpet,
paint, or wallpaper.
 When leaving a property, no
equity is returned as it would be if
selling a home.
 No tax deductions
 May lose rental if the property is
sold.

10. 1.9.3.G1
© Family Economics & Financial Education – Revised March 2009 – Housing Unit – Renting vs. Owning a Home
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Costs of ownership
 Monthly mortgage payments
 Down payment (one time cost)
 Closing costs (one time cost)
 Utilities – electricity, water, garbage, etc.
 Homeowner’s insurance
 Real estate property taxes
 Maintenance

11. 1.9.3.G1
© Family Economics & Financial Education – Revised March 2009 – Housing Unit – Renting vs. Owning a Home
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Home ownership
 Home ownership - the buyer has purchased a housing unit as
property
– Goal of many Americans
– A large financial decision
 Owning a home is an investment because if a person sells a
home for more than what it was bought for, the person makes
money. This is called equity.
 Financial planning and savings can assist a person in planning
for the benefits of home ownership later in life.

12. 1.9.3.G1
© Family Economics & Financial Education – Revised March 2009 – Housing Unit – Renting vs. Owning a Home
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Purchasing a home
 90% of buyers take out a mortgage
– A home loan in which the real estate is the collateral
– Collateral is an item promised to the lender if the borrower does not
pay back the loan, usually the home.
 Down payment
– Amount of money paid on the home at time of purchase
– Typically 10 – 20% of the purchase price of the home
 Recommended purchase price amount an individual should pay for a home
– 2 ½ times their annual household income

13. 1.9.3.G1
© Family Economics & Financial Education – Revised March 2009 – Housing Unit – Renting vs. Owning a Home
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Advantages of
ownership
 Build equity which can be
borrowed against if
necessary
 Pride of ownership
 Feel more comfortable and
have more privacy
 Stable mortgage payments
 More room and storage
 Improvement of buyer’s
credit rating
 Income tax deductions for
property taxes and mortgage
interest
 Potential for property to
increase in value
 Free to make home
improvements and have pets
(items typically not allowed in
rentals)

14. 1.9.3.G1
© Family Economics & Financial Education – Revised March 2009 – Housing Unit – Renting vs. Owning a Home
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
Disadvantages of
ownership
 Large down payment
 Move-in costs
 Insurance costs
 Possible for property to
decrease in value
 Time, money, and energy
commitment
 Repair and maintenance
costs
 Property taxes can raise
substantially
 Money is tied up in the
home
 May take several months to
sell a home if trying to
relocate