2.  Average American Family spends ¼ of income on home  60% of housing units are owned by the people living on them

3.  Town Homes: Home with individual front and back yards, but common side walls ◦ Usually cheaper, but size and noise are issues  Single Family Home: House separated by neighboring homes ◦ Most expensive to buy and maintain ◦ Real Estate Taxes: taxes paid on land and buildings ◦ Symbolizes the American Dream

4.  Condominiums: Single unit in a complex that is individually owned ◦ Monthly fees are paid for “common area” upkeep  Mobile Home: least expensive to buy and maintain ◦ Suffer greater damage during storms ◦ Depreciate: Decline in value

5.  Purchase Price/Annual Income=2.0 or Less  Mortgage Payment/Monthly Take-home income=Less than 33%  Loan Amount/Value of the Home=95% or less Using rule 1: Would a person making $45,000 a year be able to afford a $100,000 single family home? Using rule 2: Would a person taking home $1500 a month be able to afford a $600 mortgage?

6.  Down Payment: Money Paid up front  Closing Costs: Fees in buying a new home ◦ Ex. Inspections, Application fees

7.  Lease = long-term agreement describing the terms under which property is rented.  Clauses to avoid in leases ◦ Inability to sue clause ◦ Arbitrary clauses which can have you removed for behavior not outlined in law. Security Deposit – money a renter lets an owner hold, if the rent is not paid or an apartment is damaged, the owner may keep all or part of the deposit.

8.  Tenant Rights: ◦ Privacy  Tenant Responsibilities: ◦ Pay rent on time ◦ Care for property/notification of problems ◦ Follow leasing limits ◦ Give notice  Landlord Responsibilities: ◦ minimum services required ◦ Safety laws followed