The Finances of Housing Business and Personal Finance Chapter 7

Renting an Apartment Advantages Disadvantages Easy to move Low maintenance responsibility Low financial commitment Few Financial Benefits No tax advantage Limitation on activities Less Privacy Legal Concerns Lease Sublet????

Renting a House Advantages Disadvantages Easy to move Low maintenance responsibility Low financial commitment More Space No tax advantage Some limitation on activities Higher utility expenses

Owning a House Advantages Disadvantages Pride of Ownership Plenty of Space Tax benefits Owning a House Disadvantages Financial commitment High living expenses Limited mobility

Owning a Condominium Advantages Disadvantages Pride of Ownership Fewer maintenance costs or responsibilities than a house Tax benefits Access to recreation and businesses Financial commitment Less privacy than in a house Need to get along with others Typically small and limited space May be hard to sell

Owning a Mobile Home Advantages Disadvantages Less expensive than other ownership options. Owning a Mobile Home Disadvantages May be hard to sell Possible poor construction quality

Types of Housing Single Family Dwellings Multiunit Dwellings Duplexes Townhouses Condominiums Cooperative Housing Manufactured Homes Prefabricated Mobile Home A housing cooperative is a legal entity—usually a corporation—that owns real estate, consisting of one or more residential buildings. Each shareholder in the legal entity is granted the right to occupy one housing unit, sometimes subject to an occupancy agreement, which is similar to a lease. The occupancy agreement specifies the co-op's rules. Cooperative is also used to describe a non-share capital co-op model in which fee-paying members obtain the right to occupy a bedroom and share the communal resources of a house that is owned by a cooperative organization.

Housing How much can you afford? Price and Down Payment Financing Points Interest Rate Mortgage PMI (Private Mortgage Insurance) Closing Costs Size and Quality

Your lifestyle will affect the type of housing that you choose!