Business and Personal Finance © 2007Chapter 7:
The Finances of HousingChapter Summaries- Renting tends to be less expensive than buying and offers more flexibility. Home ownership offers stability, financial benefits, and increased value over time.
- Renting a residence has the advantages of mobility, few maintenance responsibilities, and relatively low initial costs. Disadvantages include rent increases, few tax benefits, and restricted activities.
- The cost of renting is affected by the neighborhood, space, monthly rent, security deposit, and renters insurance.
- Advantages of owning a residence include stability, individual expression, tax benefits, and increased value. Disadvantages include financial risk, the possibility of value not increasing, limited mobility, and high expenses.
- When evaluating property, walk through the neighborhood, check the home exterior and interior, and get a home inspection.
- A down payment is needed to purchase a home. Then a buyer must get a long-term loan, or mortgage, to pay for the remaining purchase price. Closing costs must also be paid.
- To sell a home, decide whether to use a real estate agent, prepare the home, set a fair price, and keep the home neat and clean.
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