1. Renting Vs. Owning What choice will you make?

2. Show of hands O How many of you plan on owning your own home someday?

3. What would a decision of renting vs. buying be based off of? O Personal and financial goals O Personal values, needs, and wants O Amount of money available for housing O Financial resources O Credit history O Real estate prices O Location O Expected length of stay in a particular area

4. Compare Expenses RentingOwning Monthly RentMonthly mortgage payments Security DepositDown Payment UtilitiesClosing costs Renters InsuranceHomeowners Insurance Pet DepositsReal Estate property taxes Maintenance

5. Renting Terms O Tenant: O Landlord: O Property Manager: O Security Deposit: O Lease:

6. Advantages of Renting O Low move in costs O Fixed monthly expenses O Easy to move O Location choices O Less maintenance and repairs O Fewer responsibilities O Amenities that may be offered (tennis court, pool, fitness area) O Less expensive that owning a home O May be able to save for other wants/needs if renting a less expensive apartment O Sometimes, other expenses are included: electricity, water, sewer, garbage

7. Disadvantages of Renting O Must follow the terms of the lease O Rent may change with little notice O Less privacy O Restrictions on noise level and/or pets O Fewer opportunities to upgrade apartment (new carpet, paint or wall paper) O No equity is returned when leaving a property O No tax deductions O May lose rental if the property is sold

8. Owning O 2 out of 3 American Families own the home they live in. O Some see homeownership as meeting the American Dream O Do you agree?

9. Owning a Home Terms O Mortgage O Collateral O Down payment

10. Advantages of Owning a Home O Build equity which can be borrowed against if necessary O Pride of ownership O Feel more comfortable O More privacy O Stable mortgage payment O More room and storage O Improvement of credit rating O Income tax deductions for property taxes and mortgage interest O Property may increase in value O Home improvements and personalization O Pets

11. Disadvantages of Owning a Home O Large down payment O Move-in costs O Insurance costs O Possible for property to decrease in value O Time, money, energy commitment O Repair and maintenance costs O Property taxes can raise substantially O Money is tied up in home O May take several months/years to sell home if trying to relocate