1. The Finances of Housing
Business and Personal Finance
Chapter 7

2. 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????

3. 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

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

5. 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

6. 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

7. 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.

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

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