Buying and Renting Homes

Document Sample
Buying and Renting Homes Powered By Docstoc
					Buying and Renting Homes
          Types of Homes
 Single-family
 Custom-built
 Systems-built (modular)
 Manufactured (mobile)
 Apartment
 Condominium
 Townhouse
 Duplex
        I. Single- family homes
   A. Custom-built: A custom home is one that is
    especially designed to meet the specifications of
    the person who commissioned it
Developmental home…not to be
confused with a custom-built home

A limited number of homes to choose from and limited
adjustments to the interior layout
   B. Systems-built (modular): Modular
    homes are homes built in modules at a
    factory. Modules are transported to the
    home site on flat bed trucks.
   C. Manufactured home (mobile): a large
    house trailer that can be connected to
    utilities and can be parked in one place
    and used as permanent housing
        II. Multiple family homes
   A. Apartment: a dwelling unit within a multifamily
    structure, generally provided as rental housing;
    individual apartment units but a common
    entrance and hallway.
   B. Condominium: A building or complex in
    which units of property, such as
    apartments, are owned by individuals and
    common parts of the property.
   C. Townhome: A townhouse is one of a row of
    homes sharing common walls. Differing from
    condominiums, townhouse ownership does
    include individual ownership of the land
   D. Duplex: a house with two units sharing
    a common wall.
Studio Apartment…a unit with one
 main room, a small kitchen area,
and a bathroom…a.k.a. efficiency
                      III. Renting
   Calculating the amount that you can afford
    for rent per month:
     Gross monthly income X 28%(.28)
     Example:
         $2200 X   .28 =$616
    Fees associated with renting

 Application fee…helps to insure that the
  renter is seriously interested in taking the
  unit
 Security deposit…covers the cost of any
  future damage the renter might cause to
  the unit
 Advance on rent…a renter may have to
  pay 1 months (or more) rent before
  moving in
Lease: the legal document that
tenants and landlords sign when
agreeing to rent housing for a
specific period of time

Should contain: Cost, late penalty,
date of monthly payment, amount
of security deposit, length of time,
restrictions, etc.
Landlord: an owner of rental
property; makes repairs to the
property and expect tenants to pay
rent on time
    Breach of Contract : if either
    party fails to fulfill his or her
           responsibilities

 Tenants rights…to have a safe, habitable
  rental unit
 Tenants responsibilities…pay rent on time
  and take proper care of rental space
Evict: legally require the tenant
to move out before the lease
expires
        Ways out of a lease
 Assigning a lease…to transfer the lease to
  someone else; the new tenant will then
  appear on the lease
 Sublet…original tenant rents to someone
  else; original tenant’s name remains on
  the lease and still keeps responsibility
 Pay the rent for the duration of the lease
           Renter’s insurance
   A policy that covers the personal
    belongings of the tenant in case of theft,
    fire, or other hazards



   The landlord’s insurance does not cover
    the personal belongings of the tenant
    Other items rent may cover


 Water
 Sewer
 Trash collection
IV. Buying a Home
Calculation for affording a
          home

  annual income X 2.5

          Example:
    30,000 X 2.5 = $75,000
Earnest money: a deposit that a
potential buyer pays to show that
he or she is serious about buying a
home
     Title search fee: for an
investigation to make sure that no
 one else has any claims against
            the property
    General Home Inspection:
 Structural soundness
 Plumbing
 Electrical
 Heating
Termite inspection…most states
            require
  Origination fee: a fee paid to
lender to process the mortgage
           application
Appraisal fee: for an estimate
 of the value of the property
Equity: the difference between the
market value, the price it might sell
for, and the principal still owed on
           the mortgage
    2 possible loans for home buyers


 FHA (Farmers Home Administration)
  …guarantees mortgages for low to
  moderate credit ratings
 VA (Veteran’s Affairs)…gives loans to
  people in the military

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:3
posted:6/23/2011
language:English
pages:30