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Buying/Renting A Home

Buying/Renting A Home. Advantages of Owning a Home. Freedom of use With restrictions Greater privacy Good Investment Tax benefits Use as collateral. Disadvantages of Owning a Home. Less Mobility Maintenance costs High risk of bankruptcy . Advantages of Renting. Greater mobility

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Buying/Renting A Home

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  1. Buying/Renting A Home

  2. Advantages of Owning a Home • Freedom of use • With restrictions • Greater privacy • Good Investment • Tax benefits • Use as collateral

  3. Disadvantages of Owning a Home • Less Mobility • Maintenance costs • High risk of bankruptcy

  4. Advantages of Renting • Greater mobility • No maintenance costs • Build credit • Pay rent on time • More money

  5. Disadvantages of Renting • No freedoms • No return on money • Few tax benefits • Less privacy • No collateral • Need to wait for maintenance work

  6. Buying a House • Closing costs - $2000 - $4000 • Lawyers • Inspectors • Credit reports • Loan applications • Taxes • Title search • Payment Mortgage Insurance • Fee if 20% of the mortgage is not paid at closing

  7. Types of Mortgages • 30 Fix Rate • Same interest rate for 30 years • Generally higher interest rate • Adjustable Rate Mortgage (ARM) • Rate will adjust after period of time • Generally lower rates at first, but will increase • Monthly payments will increase

  8. Renting a Home • Lease • Contract that protects tenant and landlord • 1 to 3 years on average • Pay more for shorter leases (6months or 9 months) • Tenant rights • Use the property as stated in the lease • Privacy based on the lease

  9. Tenant Responsibilities • Paying the rent on time • Affects your credit • Taking care of the property • Notify the landlord of repairs needed • Security Deposit • Money held by landlord • Used if damage or unpaid rent • If all is well, tenant receives the money back

  10. Landlord Responsibilities • Must make sure of the basic needs • Heat • Livable • Safety laws • Smoke detectors • Fire escapes • Repairs • Completed in a reasonable amount of time • Can pay for repairs yourself

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