Concepts of Home Ownership

Types of Housing Apartments Apartments Condominiums Condominiums Cooperative Cooperative PUD’s – Planned Unit Developments PUD’s – Planned Unit Developments Also called Master Planned Community Also called Master Planned Community Retirement Communities Retirement Communities High-rise or Mixed-Use Developments High-rise or Mixed-Use Developments Manufactured Homes Manufactured Homes Modular Homes Modular Homes Time Shares Time Shares

Housing Affordability General guidelines: General guidelines: PITI payments should not exceed 28% of gross income PITI payments should not exceed 28% of gross income All payments should not exceed 36% of gross income. All payments should not exceed 36% of gross income. How can you know how much you can afford? How can you know how much you can afford? Financial calculators are good! Financial calculators are good! Examples Examples

Real Estate as an Investment Advantages Advantages Disadvantages Disadvantages Taxation on real estate Taxation on real estate property taxes property taxes interest deduction interest deduction loss limitations on investment property loss limitations on investment property

Homeowner’s Insurance See book for coverage and claims See book for coverage and claims Coinsurance clause Coinsurance clause EFIS – exterior insulating finishing system EFIS – exterior insulating finishing system

Flood Insurance How it works How it works Is your house in a flood zone? Is your house in a flood zone? How can you get around flood insurance? How can you get around flood insurance? How does a flood zone affect property values? How does a flood zone affect property values? Would you ever buy a house in a flood zone? Would you ever buy a house in a flood zone?