1. Evaluating Housing Alternatives  Your lifestyle, needs, desires and attitudes are reflected in your choice of a place to live  Personal preferences are modified by financial factors  Traditional financial guidelines suggest you spend no more than 25-30% of take-home pay on housing, or no more than 2 1/2 times your annual income.  Changes in economy and society no longer make these guidelines valid  Still need some financial guidelines LO#1

2. Opportunity Costs of Housing Choices  While the opportunity costs of your housing decision will vary, some common trade-offs include:  Interest earnings lost on money used for a down payment or the interest on a security deposit for an apartment.  Time and cost of commuting to live in an area that offer less costly housing or more space.  Loss of equity growth when you rent.  Time and money to repair and improve a lower-priced home.  Time and effort when you have a home built to your personal specifications. LO#1

3. Housing Information  Information on housing is available and you should research your purchase in advance  Books like this one and other in the library  Real estate section of the newspaper  Friends, real estate agents and government agencies  Canada Housing and Mortgage Corporation Canada Housing and Mortgage Corporation  Financial Consumer Agency of Canada Financial Consumer Agency of Canada LO#1