H OUSING Housing options

H OUSING OPTIONS What should you consider when you evaluate available housing alternatives? Your lifestyle and finances What are some opportunity costs to consider when purchasing a home? Mobility – ability to move easily from place to place What are you giving up? Time Effort money

H OUSING OPTIONS What are some opportunity costs to consider when purchasing a home? Tax advantages Time When would buying a residence be a better choice than renting one? Buying is better for people who want stability and more room than an apartment offers, privacy and the freedom to do as they wish, and tax benefits.

H OUSING OPTIONS Where can you research housing options? Public library Newspaper real estate section Friends and family Real estate agents Government agencies Internet

R ENTAL TERMS Tenant A person who pays for the right to live in a residence owned by someone else. Landlord A person who owns the property that is rented

R ENTAL TERMS Lease A legal document that defines the conditions of the rental agreement between the tenant and the landlord If you decide to rent you will have to sign a lease

R ENTAL TERMS Security deposit An amount of money paid to the owner of the property by a tenant to guard against any financial loss or damage that the tenant might cause. Security deposits usually equal one or two months’ rent.

R ENTAL TERMS Renters insurance A type of insurance that covers the loss of a tenant’s personal property as a result of damage or theft.

R ENTING Advantages Disadvantages

A DVANTAGES OF R ENTING Mobility Many people prefer to rent because of the ease and speed with which they can move when a good job opportunity comes along elsewhere. If you are unsure about whether or not you will stay in the same location for a long period.

A DVANTAGES OF R ENTING Convenience Rental properties often have laundry and recreational facilities Rental units are often conveniently located near major shopping areas, downtown or business centers

A DVANTAGES OF R ENTING Minimal responsibilities The landlord bears most responsibility for repairs, maintenance of the grounds, and property management. Social Life Apartments located in multi-unit buildings offer the opportunity to meet others and socialize informally, especially those that provide recreational facilities.

A DVANTAGES OF R ENTING Lower Living Expenses Apartment rent is usually lower than the cost of buying a house. Sharing expenses with roommates lowers individual costs even more.

D ISADVANTAGES OF R ENTING Noise Residents of apartments, duplexes, or condominiums share common walls with neighbors above, below, or beside them. Music and conversations of neighbors can be overheard.

D ISADVANTAGES OF R ENTING Lack of privacy Because conversations can be overheard through common walls, tenants often feel that their neighbors know too much about their private lives. Small Quarters A typical apartment is smaller that some other housing alternatives. Five hundred to 1,000 square feet of living space is average for an apartment

D ISADVANTAGES OF R ENTING Lack of Storage Area Small size of many apartments means less cabinet and closet space Few rental properties offer more than a small amount of additional storage space for rarely used items

D ISADVANTAGES OF R ENTING Lack of parking Many rental properties do not provide garages or off- street parking. Visitor parking is often very limited