The Finances of Housing Business and Personal Finance Chapter 7 Renting an Apartment Advantages Disadvantages • Easy to move • Low maintenance responsibility • Low financial commitment • Few Financial.

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Transcript The Finances of Housing Business and Personal Finance Chapter 7 Renting an Apartment Advantages Disadvantages • Easy to move • Low maintenance responsibility • Low financial commitment • Few Financial.

The Finances of Housing
Business and Personal Finance
Chapter 7
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????
Renting a House
Advantages
Disadvantages
• Easy to move
• No tax advantage
• Low maintenance
responsibility
• Some limitation on
activities
• Low financial
commitment
• Higher utility
expenses
• More Space
Advantages
• Pride of Ownership
Owning
a
House
• Plenty of Space
• Tax benefits
Disadvantages
• Financial
commitment
• High living expenses
• Limited mobility
Owning a Condominium
• Advantages
• Disadvantages
• Pride of Ownership
• Financial commitment
• Fewer maintenance
costs or responsibilities
than a house
• Less privacy than in a
house
• Tax benefits
• Need to get along with
others
• Access to recreation
and businesses
• Typically small and
limited space
• May be hard to sell
• Advantages
Owning a
Mobile
Home
• Less expensive than
other ownership
options.
• Disadvantages
• May be hard to sell
• Possible poor
construction quality
Types of Housing
• Single Family Dwellings
• Multiunit Dwellings
– Duplexes
– Townhouses
• Condominiums
• Cooperative Housing
• Manufactured Homes
– Prefabricated
– Mobile Home
Housing
How much can you afford?
•
Price and Down Payment
– Financing
•
•
Points
Interest Rate
– Mortgage
– PMI (Private Mortgage Insurance)
– Closing Costs
•
Size and Quality
Your lifestyle will
affect the type of
housing that you
choose!