1. HOUSING: TO RENT OR BUY? RENTING AN APARTMENT 1. LEASE- the contract created by the property owner stating rules and expectations of the renter for the use of the rented property. 2. Security Deposit- used for rent not paid, property damage, etc. - usually one months rent 3. Tenant rights and responsibilities 4. Landlord responsibilities

2. Landlord and Tenant Responsibilities Landlord Must abide by lease terms Tenants must have “quiet enjoyment.” –Must give notice before showing up except for emergency repairs are needed –May not harass or intimidate House must be in “habitable condition” –Cold Water –Electricity –Heating –Good repair –Pest free Must return security deposit or provide written notice as to why part or all has not been returned Tenant Must abide by the lease terms provided that the terms are in compliance with PA Landlord Laws Must pay rent on time Responsible to and pay for major damage not normal “wear and tear” A couple of points: –If there is major damage caused by the tenant, the landlord has the right to begin Eviction Proceedings –Evictions: Must be done through courts (lawful eviction order) Tenant may be able to sue the landlord if he landlord: –Moves belongings –Shuts down utilities –Changes locks

3. APPLICATION AND LEASING CLAUSES 1.Confession-of-Judgment clause 2.Inability-to-Sue clause 3.Arbitrary clauses (wishes of the owner) *hanging pictures, guests, parties, sub-leasing, repairs, sidewalks, noise, etc. 4. Appliances, adaptations, facilities, your right to things that you install, etc., ??????

4. Renting and Apartment Tips https://www.youtube.com/watch?v=KcLAq_cNYX4

5. ADVANTAGES AND DISADVANTAGES OF RENTING ADVANTAGES large down-payment not needed major repairs free of home owner responsibilities ??????? DISADVANTAGES no equity can’t make major changes pets? rules/lease ????????

6. BUYING A HOUSE 1.HOW MUCH SHOULD I SPEND? a. rule one: Purchase price divided by annual income = 2.0 or less b. rule two: mortgage payment divided by monthly take home income = 33 % or less. c. rule three: loan amount divided by appraised value of home = 95% or less 2. MORTGAGE- a specific loan for property, houses, buildings and land. 3. Advantages and Disadvantages of owning a home.

7. THE STEPS OF BUYING A HOUSE OFFER/COUNTER-OFFER CONTRACT INSPECTION DEPOSIT/EARNEST MONEY ATTORNEY OBTAINING A LOAN POINTS ESCROW CLOSING COSTS TAXES INSURANCE

8. A HOME IS EQUITY A HOME IS AN INVESTMENT. YOU CAN MAKE MONEY FROM IT WHEN YOU SELL IT! EQUITY: monetary value of a home beyond what is owed to the creditor. EXAMPLE: You buy a home in 2008 for $125,000. You live in it for 10 years. Your family grows and you need a bigger house. You have made some improvements to your house and have paid off $50,000 towards the home. You have it appraised and it sells for $175,000. $175,000 - $75,000 = $100,000 (equity) You now have $100,000 towards your new home.