ECONOMICS Housing Basics
Things to consider… Housing is considered a basic human need. Real Estate is also viewed by many as an investment opportunity. A variety of different housing options are available depending on need, personality, and budget. Your short and long terms goals, as well as the decisions you make, can impact your housing situation.
Option #1- College For many young people, college is the first opportunity to live independently. A variety of options are available… Dormitories Students rent from the university Cheap (included in tuition) Very basic Limited responsibility (bills, cooking, cleaning, etc.) Apartment More flexible than dorm More expensive More responsibilities Fraternity/Sorority House Home Depends on proximity to college Can save $$$ on room and board Don’t get the full “college experience”
Option #2- Your Parent’s House Can be a good choice, especially during or immediately after college. Pros: Cheap rent, utilities, food, etc. Familiarity Allows you to save for your own place Cons: Not as independent “Hey girl, wanna watch a movie….in my mom’s basement?”
Option #3- Apartments Come in a variety of shapes and sizes as well as price ranges. Can rent in a free standing building or a large complex. Price increases w/ space and features. Pros: Convenient, less responsibility than owning, cheaper, mobility. Cons: No ownership, less freedom, space shared w/ others, security deposit.
Option #4- Condo An apartment that you own instead of rent. Pros: more freedom, more spacious than a typical rented apartment. Cons: financial and ownership responsibilities, association fee.
Option #5- Your Own Home Owning your own home offers the maximum control and freedom over the property. Pros: Property may increase in value, max. privacy, few restrictions Cons: Property may decrease in value, down payment, more expensive, restricted mobility
Wrap-Up Regardless of the type of housing you choose, you must consider the pros and cons of each and how they fit with your short and long term goals.