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Renting vs. Owning
Introduction Housing Is the Largest Expenditure ,[object Object],Places to Live ,[object Object], Two Options ,[object Object]
Own,[object Object],[object Object]
Advantages of Renting Less Expensive ,[object Object]
Cheaper monthly paymentFixed monthly expenses Shorter commitment Little maintenance or repair work Extra amenities Utilities may be included
Disadvantages of Renting Subject To Lease Term Rent may change with little notice Less privacy and transient neighbors Restrictions on noise level  Fewer decorating options No equity No tax deductions Property could be sold No Pets
Home Ownership Terminology Home ownership  ,[object Object],Equity ,[object Object],Down payment ,[object Object]
10 – 20% of the purchase price of the homeCollateral ,[object Object]
Usually the home,[object Object]
90% of buyers take out a mortgageLargest financial decision Recommended purchase price ,[object Object],[object Object]
Disadvantages of Ownership Large down payment Move-in costs Insurance costs Commitment—time, money, and energy Repair and maintenance costs Property taxes can raise substantially Money is tied up in the home Relocate—sell time unknown Possible for property to decrease in value
Reasons for Making a Housing Choice $$ Personal and financial goals Personal values, needs, and wants Credit history Real estate prices Location preference Expected length of stay in particular place
Costs of Renting Monthly rent Security deposit ,[object Object],Utilities ,[object Object],Renter’s insurance (optional)

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Renting vs. Owning Show

  • 2.
  • 3.
  • 4.
  • 5. Cheaper monthly paymentFixed monthly expenses Shorter commitment Little maintenance or repair work Extra amenities Utilities may be included
  • 6. Disadvantages of Renting Subject To Lease Term Rent may change with little notice Less privacy and transient neighbors Restrictions on noise level Fewer decorating options No equity No tax deductions Property could be sold No Pets
  • 7.
  • 8.
  • 9.
  • 10.
  • 11. Disadvantages of Ownership Large down payment Move-in costs Insurance costs Commitment—time, money, and energy Repair and maintenance costs Property taxes can raise substantially Money is tied up in the home Relocate—sell time unknown Possible for property to decrease in value
  • 12. Reasons for Making a Housing Choice $$ Personal and financial goals Personal values, needs, and wants Credit history Real estate prices Location preference Expected length of stay in particular place
  • 13.
  • 14.