Housing S10

Requirements before moving into a property

• Pay a security deposit and sign a lease agreement.

• Provide a reference from a previous landlord.

• Submit a credit report and background check.

• Obtain renter's insurance before moving in.

Purpose of a lease

• A lease is a contract outlining the terms under which one party agrees to rent property owned by another party.

• A lease is a document that allows a tenant to purchase property outright.

• A lease is a verbal agreement that does not require any written documentation.

• A lease is a type of insurance policy for property owners.

How most people pay for a home

• Through cash payment

• Through a mortgage

• Through a personal loan

• Through a lease agreement

Coverage of an escrow account

• An escrow account holds funds for property taxes and insurance.

• An escrow account is used for storing personal belongings.

• An escrow account is a type of savings account with high interest rates.

• An escrow account is a legal document for property transfer.

Maximum amount to pay for a home vs how much of your budget should go to housing.

• The maximum amount should be 3 times your annual household income.

• Your monthly housing budget should be 25% of your net monthly income.

• The maximum amount should be 2 1/2 times your annual household income.

• Your monthly housing budget should be 40% of your net monthly income.

Largest expenditure of one’s income

• Housing is typically the largest expenditure of one's income.

• Transportation costs are usually the largest expenditure of one's income.

• Food expenses are generally the largest expenditure of one's income.

• Entertainment is often the largest expenditure of one's income.

Definitions: tenant, landlord, property manager

• Tenant: Owner of rental property.

• Landlord: Renter of property.

• Property Manager: Oversees rental operations.

• Tenant: Renter of property.

Factors to consider on whether to rent or own

• Financial stability, long-term plans, and market conditions.

• Personal preferences and lifestyle choices.

• Availability of rental properties in the area.

• The color of the house and its aesthetic appeal.

Definitions: rent, eviction, equity, subleasing

• Rent: Payment for property use.

• Eviction: Removal from property.

• Equity: Ownership value.

• Subleasing: Renting to another tenant.

Benefits and Costs of Home Ownership

• Building equity and stability

• High rental costs

• Increased mobility

• Lower maintenance requirements