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Published byLizbeth Small Modified over 9 years ago
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Security deposit – a refundable amount a renter pays in advance to protect the owner against damage or nonpayment. Mortgage – a loan to purchase real estate. Landlord – the owner or owner’s representative of rental property. Tenant – a person who rents property.
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Lease – a written agreement that allows a tenant to use property for a set period of time at a set rent payment. Down payment – the amount paid at purchase to bring down the amount owed. Closing costs – the expenses incurred in transferring ownership from buyer to seller in a real estate transaction.
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Think about the housing choices of your older siblings or friends who recently moved into a place of their own. Share - Where are they living? How do they feel about living in their own home? How does it compare to living with their family?
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Physical needs – shelter from elements, safe place for possessions, space for personal activities Emotional needs – privacy and personal expression Social needs – gather with family and friends
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It all depends on the size and location. You must determine what you can afford. You will need a security deposit and probably first and last month’s rent. Utilities – may be included or separate (make sure you find out up front)
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Furniture and Appliances – you may have to provide them, may not. Insurance – a cost you need to plan in budget Rent or Mortgage – actual monthly payment Being a homeowner adds property taxes to the cost of housing.
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Spend no more than 1/3 of gross pay on housing Renting or Buying – it’s not just finances Shared Housing › You can have roommates › You can stay with family Either way – know what you are getting into
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Cities › Offer great cultural experience, entertainment and shopping › Crowded and noisy Suburban Areas › Access to the city without the drawbacks Rural Areas › Small community away from city life What are some of your opinions about the locations above?
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Familiarity › Friends and family › Security Desire for Change › Challenge for something different Lifestyle Considerations › Live near school or work/commute › Climate, physical features, low cost Practical Considerations › Transportation, shopping
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It is a Landlord and Tenant relationship Advantages › It is fixed expenses › There is greater flexibility › You have more free time – less maintenance › There is a lower insurance cost
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Disadvantages › There are restrictions › There are financial drawbacks › You have limited control Selecting a Rental › Go beyond floor plan and decorations › Consider location – safe and near things › What utilities are included? Signing a lease › It is an agreement › It is a legal and binding document › You will probably need deposits
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Advantages: › There is stability – you won’t get kicked out › There is greater freedom – you can do what you want with the place › The home will have investment value › There are tax advantages
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Disadvantages › There can be unexpected expenses › There will be time spent on maintenance › You have reduced mobility Buying Procedures › Decide: Needs, Wants, Price range › Check on: Safety, convenience & stability › Get agent and shop around › You then make an offer & negotiate
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Financial Considerations › Know the monthly installments › Know the up front & one-time costs Down payment (5-20%) Closing costs › A home is usually the most significant purchase anyone makes - it should be done wisely.
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You can investigate housing prices in different locations that are interesting to you (pick several students) http://www.craigslist.org/about/sites#US http://www.craigslist.org/about/sites#US http://www.zillow.com/ http://www.zillow.com/ http://www.trulia.com/ http://www.trulia.com/
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