1. Module 10.1 Housing Alternatives

2. Apartment: a unit of rooms you rent to live in where there is more than one unit in the building House: a single dwelling that can be rented or purchased VOCABULARY

3. RENTING Reasons to rent:  Less expensive so easy on your budget  Minimum amount on maintenance – owner responsible to fix and replace things that belong to the property  Easy to relocate when lease is finished  May provide extras for your use like swimming pool, exercise room, laundry room, and special parking area  the opportunity cost is a lack of privacy

4. HOUSE  All range of sizes and prices  Privacy To own your home there is:  A down payment to buy  Yard work like mowing the lawn and keeping up the garden  Cost of maintenance – repairs to the inside and outside  If you want to sell the home, you must find a buyer

5. Module 10.2 Renting an Apartment

6. VOCABULARY 1. Landlord: person who owns and rents property to another 2. Lease: a written contract between the landlord and the tenant stating the responsibilities and terms of both parties 3. Rent: the amount you pay to occupy a house or apartment you do not own 4. Tenant: the person who signs the lease and pays the rent 5. Security deposit: an amount of money you put down when renting that is held for purposes such as cleaning and damage repairs when you move out

7. Advantages & Disadvantages to Renting  Smaller living space that is easier to manage  Little to no maintenance costs or work inside and outside  Easier on the budget  Easier to move to a new place once lease is up  Lack of privacy  Lack of control over the property (can’t paint walls or decorate extensively)  No pets allowed in many cases  Noise rules in place  Controls over personal behavior

8. Reading a Lease Things you should find on a lease:  Name of landlord and how to contact them  List of ALL roommates living in the apartment  EXACT address of the apartment you are renting  Exact amount of the rent, how often and the date the rent must be paid  Listing of any additional fees  Listing of any services provided by the landlord  The amount of the security deposit, what will be deducted from it, and how any remaining amount will be returned to you  Any policies and restrictions  Start and ending dates of the lease  Landlords right to enter  EVERYONE listed as a tenant on the lease MUST sign

9. NEVER SIGN A LEASE UNLESS YOU HAVE READ IT COMPLETELY AND Understand aLL OF IT!!!

10. Module 10.3 Buying a House

11. VOCABULARY 1. Down payment: the amount of money you must supply when buying a house 2. Equity: the difference between how much your home is worth and how much you owe on it 3. Mortgage: the amount of money you borrow from a lender to pay for a house or property

12. 4. House poor: when your house payments are too high for you to afford and you are finding it hard to pay your bills 5. Mortgage (or loan) fraud: when you lie on your mortgage application. NEVER LIE ON ANY LOAN APPLICATION – IT IS A CRIME! 6. Mortgage broker: The person who brings together the buyer and the lender 7. Collateral: something of value that is a guarantee you will pay back a loan

13. Advantages & Disadvantages of Owning a Home BUILDS EQUITY Privacy and security Can decorate and remodel as you please Can deduct mortgage interest from income taxes Requires a down payment to buy usually 20% Must secure a mortgage Must purchase insurance Must pay for all living expenses Must do the maintenance and repairs and pay for them Must do the yard work and gardening May not be able to sell it if you have to Housing values could go down causing you to lose money

14. Mortgages  Always shop around for the best interest rate.  If possible, get a preapproved mortgage. This will give you a limit as to how much you can spend.  The bigger your down payment, the smaller your mortgage so the smaller your mortgage payments.  Making extra payments or higher payments to your mortgage will shorten the amount of time you will have to pay on it.  Keep your mortgage payments within your budget. Only borrow what you can afford.

15. Real Fixer Upper Complete with ghosts to scare and delight!