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2.1 Choosing a Place 2.1 Choosing a Place To LiveTo Live
Unit 2Unit 2
When choosing a place to live When choosing a place to live you should consider the you should consider the
following about the location:following about the location:RegionRegionCommunityCommunityNeighborhoodNeighborhoodSiteSiteSpecific houseSpecific house
The RegionThe RegionSpecific part of the world, Specific part of the world,
country, or state in which you livecountry, or state in which you liveReasons for choosing a region Reasons for choosing a region
include:include:–ClimateClimate–FamilyFamily–JobJob
CommunityCommunity
Region is divided into Region is divided into communitiescommunities
Community may be large Community may be large city, small village, or rural city, small village, or rural areaarea
NeighborhoodNeighborhood
Communities are divided into Communities are divided into neighborhoodsneighborhoods
Neighborhoods are a group of Neighborhoods are a group of houses and peoplehouses and people
Buildings in a neighborhood are Buildings in a neighborhood are usually similar in age, design, usually similar in age, design, and costand cost
SiteSiteA location within a neighborhood A location within a neighborhood
is called a site or lotis called a site or lotA site is the piece of land on A site is the piece of land on
which the dwelling is builtwhich the dwelling is builtEach site has its own size, shape, Each site has its own size, shape,
contour and soil typecontour and soil type
Zones Within The SiteZones Within The Site
Public zonePublic zoneService zoneService zonePrivate zonePrivate zone
Public ZonePublic Zone
Part of the site that can be Part of the site that can be seen from the street or seen from the street or roadroad
Usually in the front of the Usually in the front of the househouse
Service ZoneService ZonePart of the site that is used for Part of the site that is used for
necessary activitiesnecessary activitiesIncludes sidewalks, driveways, and Includes sidewalks, driveways, and
storage areasstorage areasService area should be directly Service area should be directly
connected to the indoor service connected to the indoor service area, which includes the kitchen area, which includes the kitchen and laundry areaand laundry area
Private ZonePrivate Zone
Part of the site hidden Part of the site hidden from public viewfrom public view
Provides space for Provides space for recreation and relaxationrecreation and relaxation
Types of HousingTypes of Housing
House – any building that House – any building that serves as living quarters serves as living quarters for one or more familiesfor one or more families
Home – any place a person Home – any place a person liveslives
Multifamily HousesMultifamily Houses
Structure that provides housing for Structure that provides housing for more than one living unitmore than one living unit
Each living unit has its own distinct Each living unit has its own distinct living quartersliving quarters
Less costly than single-family Less costly than single-family houseshouses
Duplexes are two homes attachedDuplexes are two homes attached
CondominiumCondominium
Buyer owns the living space Buyer owns the living space but shares the parking areas, but shares the parking areas, recreational facilities, recreational facilities, hallways, and lobbies with all hallways, and lobbies with all ownersowners
Single-Family HousesSingle-Family Houses
one living-unitone living-unitRented or ownedRented or ownedAttached and freestandingAttached and freestanding
Attached HousesAttached Houses
Designed for one living unit Designed for one living unit but share a common wall with but share a common wall with the houses on each sidethe houses on each side
Example: townhousesExample: townhouses
Freestanding housesFreestanding houses
Single-family houses that stand Single-family houses that stand alonealone
Factory-built: housing constructed Factory-built: housing constructed in a plant and moved to a site, low in a plant and moved to a site, low cost and faster completion timecost and faster completion time
Site-built house: built on a lot, Site-built house: built on a lot, piece by piece on a foundationpiece by piece on a foundation
Modular HousingModular HousingFactory-builtFactory-builtThe walls, floors, ceilings, and roof The walls, floors, ceilings, and roof
panels are combined in boxespanels are combined in boxesWindows, doors, plumbing, and Windows, doors, plumbing, and
wiring also includedwiring also includedAll pieces put together at building All pieces put together at building
sitesite
Manufactured/MobileManufactured/Mobile
Completely built in factoryCompletely built in factoryBuilt on wheels and rolled Built on wheels and rolled
to the housing siteto the housing site
Kit HouseKit House
Shipped to the site in as a Shipped to the site in as a finished shell from the factory. finished shell from the factory.
Interior is completed according to Interior is completed according to the buyer’s wishes once arrives the buyer’s wishes once arrives at the building siteat the building site
Cheapest of all the factory built Cheapest of all the factory built homeshomes
Housing for Older peopleHousing for Older people
Retirement plans affect Retirement plans affect housing choiceshousing choices
Example: If a couple chooses Example: If a couple chooses to travel when they retire, to travel when they retire, they may want a home with they may want a home with little maintenance and upkeeplittle maintenance and upkeep
As people age and are unable to As people age and are unable to move easily they need housing move easily they need housing that has easy cleanup and that has easy cleanup and requires little maintenancerequires little maintenance
Universal design may be a choice Universal design may be a choice –Making houses easier for Making houses easier for everyone to useeveryone to use
Universal Design ExampleUniversal Design Example
Add a no-step entrance with a Add a no-step entrance with a wider doorway and non-slip wider doorway and non-slip floorsfloors
Universal design can help Universal design can help everybody, not just the everybody, not just the elderlyelderly
Housing for People with DisabilitiesHousing for People with DisabilitiesFair Housing Act – forbids Fair Housing Act – forbids
discrimination in housing and discrimination in housing and requires multi-units to be requires multi-units to be accessible to people with accessible to people with disabilitiesdisabilities
Must have accessible entrances, Must have accessible entrances, wider doors, and easier installation wider doors, and easier installation of grab bars around toilets and of grab bars around toilets and bathtubsbathtubs
2.2 Renting Vs. Buying2.2 Renting Vs. Buying
RentingRenting 1/3 of people rent1/3 of people rent Rent is usually paid monthlyRent is usually paid monthly Before you move into a rental property Before you move into a rental property
you must pay a security deposit – this you must pay a security deposit – this insures the owner against financial loss insures the owner against financial loss caused by the rentercaused by the renter– Usually the amount of 1-months rentUsually the amount of 1-months rent– Returned when you move out if you did Returned when you move out if you did
not cause damage to the rental unitnot cause damage to the rental unit
Advantages of RentingAdvantages of Renting
Free to move when you wantFree to move when you wantDon’t have to worry about Don’t have to worry about
buying or sellingbuying or sellingNo maintenance or home No maintenance or home
improvement costsimprovement costs
Before renting you should check Before renting you should check the following:the following:
Laundry facilitiesLaundry facilities Building lobbyBuilding lobby Entrance, exit, and hallsEntrance, exit, and halls Bathrooms (does plumbing work, hot water)Bathrooms (does plumbing work, hot water) Kitchen (make sure appliances are working)Kitchen (make sure appliances are working) Air conditioning and heating (does it work)Air conditioning and heating (does it work) Wiring (should be 3 outlets per room, Wiring (should be 3 outlets per room,
switches work)switches work)
LightingLightingWindows (broken, drafts around the Windows (broken, drafts around the
windows)windows)Floors (clean and free of nicks)Floors (clean and free of nicks)Ceilings (water stains)Ceilings (water stains)Walls (cracks)Walls (cracks)Soundproofing (can you hear Soundproofing (can you hear
neighbors?)neighbors?)Telephone (phone jacks installed)Telephone (phone jacks installed)
Television (antenna/cable Television (antenna/cable television hookup)television hookup)
Storage space (large enough Storage space (large enough closets/enough cabinets)closets/enough cabinets)
Outdoor play space (is their any Outdoor play space (is their any outdoor areas/decks/etc.)outdoor areas/decks/etc.)
Rental AgreementsRental Agreements
Can rent month-to-month or year by Can rent month-to-month or year by yearyear
Must sign a leaseMust sign a lease– Legal document spelling out the Legal document spelling out the
conditions under which the renter conditions under which the renter rents the propertyrents the property
– Lists rights and responsibilities of the Lists rights and responsibilities of the owner (lessor) and the renter (lessee)owner (lessor) and the renter (lessee)
A Lease should include:A Lease should include:
Address and apartment numberAddress and apartment number Date signedDate signed Signatures of lessee and lessorSignatures of lessee and lessor Date to move in and length of leaseDate to move in and length of lease Cost of rent and when it is dueCost of rent and when it is due When the lease will renew (is it automatic?)When the lease will renew (is it automatic?) Who’s in charge of specific responsibilities Who’s in charge of specific responsibilities
such as cutting grass, shoveling snow, such as cutting grass, shoveling snow, repairingrepairing
““entry” clause which allows the lessor to entry” clause which allows the lessor to enter the apartment with notice or in an enter the apartment with notice or in an emergencyemergency
Who is responsible for water, electricity, gasWho is responsible for water, electricity, gas Security deposit amount and what must be Security deposit amount and what must be
done to receive it back when leavingdone to receive it back when leaving Clause that says the final inspection of the Clause that says the final inspection of the
property will be made in the lessee’s property will be made in the lessee’s presencepresence
Lease can’t be changed without written Lease can’t be changed without written approval by the lessor and lesseeapproval by the lessor and lessee
If the apartment can be subletIf the apartment can be sublet Pet clausePet clause
Assigning/Subletting a LeaseAssigning/Subletting a Lease
If you have signed a lease, but If you have signed a lease, but you want to move out early you you want to move out early you have three options:have three options:– Continue paying rent until the Continue paying rent until the
lease expireslease expires– Assign the leaseAssign the lease– Sublet the leaseSublet the lease
Assigning a LeaseAssigning a Lease
Transfer the entire lease to Transfer the entire lease to someone elsesomeone else
After this is done you are no After this is done you are no longer responsible for the rental longer responsible for the rental property or any damage done to property or any damage done to the propertythe property
Subletting a LeaseSubletting a Lease
Transfer part of the rental property Transfer part of the rental property to someone elseto someone else
Both you and the person you sublet Both you and the person you sublet to are responsible for the property to are responsible for the property and any damage that may occurand any damage that may occur
Both assigning/subletting costs extra Both assigning/subletting costs extra moneymoney
Breach of ContractBreach of Contract
If the lessor or lessee is If the lessor or lessee is unable to fulfill the rental unable to fulfill the rental agreement they are in breach agreement they are in breach of contractof contract
If you are in breach of If you are in breach of contract you may be suedcontract you may be sued
EvictionEviction
If a lessee does not abide by the If a lessee does not abide by the rental agreement they may be rental agreement they may be evictedevicted– This is a legal procedure that forces This is a legal procedure that forces
a lessee to leave the property a lessee to leave the property before the rental agreement before the rental agreement expiresexpires
– You must receive a warning before You must receive a warning before being evictedbeing evicted
Advantages to Buying a HomeAdvantages to Buying a Home
Freedom because know can’t be Freedom because know can’t be evictedevicted
Make own decisions about Make own decisions about maintenance and improvementsmaintenance and improvements
Value of a home tends to increaseValue of a home tends to increaseTax deductions for taxes and interest Tax deductions for taxes and interest
paid on a homepaid on a home
Disadvantages to Buying a Disadvantages to Buying a HomeHome
Strain on finances to make monthly Strain on finances to make monthly paymentspayments
Additional expenses such as property Additional expenses such as property taxes, insurance, utilities, maintenancetaxes, insurance, utilities, maintenance
Possibility of foreclosure (legal process of Possibility of foreclosure (legal process of having home taken away) if can’t make having home taken away) if can’t make monthly paymentsmonthly payments
Can’t move as easilyCan’t move as easily Have to do and pay for maintenanceHave to do and pay for maintenance
How much can I afford to pay?How much can I afford to pay?
Must assess your income, the size of Must assess your income, the size of your savings account, and your debtsyour savings account, and your debts
Estimate what you can affordEstimate what you can afford–Gross income X 2.5Gross income X 2.5–Gross income is your income before Gross income is your income before taxes and deductions are taken outtaxes and deductions are taken out
How big of a loan can I take How big of a loan can I take out?out?
To qualify for a loan must meet to To qualify for a loan must meet to guidelinesguidelines– Housing-to-income ratioHousing-to-income ratio
Housing costsHousing costs = 28% or less = 28% or less
gross incomegross incomeHousing costs include monthly Housing costs include monthly payment, property tax, insurance, payment, property tax, insurance, utilities, repairs, maintenanceutilities, repairs, maintenance
– Debt-to-income ratioDebt-to-income ratioHousing costs + debtsHousing costs + debts = 36% or less = 36% or less
gross incomegross income Remember you must also pay a down Remember you must also pay a down
paymentpayment– This is money paid before taking out a This is money paid before taking out a
loanloan– Usually 5% - 20% of the cost of the Usually 5% - 20% of the cost of the
househouse
What if I choose to build?What if I choose to build?
If you build a home you must do the If you build a home you must do the following:following:– Choose a building siteChoose a building site– Choose a house plan that will fit the Choose a house plan that will fit the
sitesite– Select a contractorSelect a contractor– Obtain money to pay for house (loan)Obtain money to pay for house (loan)
Buying HomesBuying Homes Buying new = move in quickly, no repairs Buying new = move in quickly, no repairs
will be neededwill be needed Buying pre-ownedBuying pre-owned
– Cost lessCost less– May need some work – be sure to May need some work – be sure to
inspect foundation, roof, for insect inspect foundation, roof, for insect damage, etc.damage, etc.
– Have house inspectedHave house inspected– Have house appraised – tells you how Have house appraised – tells you how
much the home/property is worthmuch the home/property is worth
Where can I look for a home?Where can I look for a home?
Real estate firm – they will charge a Real estate firm – they will charge a commissioncommission–5%-10% of selling price5%-10% of selling price
NewspapersNewspapersWord of mouthWord of mouth““for sale” signsfor sale” signsShopping guidesShopping guides
Steps in Buying a HouseSteps in Buying a House
Agreement of Sale: states where Agreement of Sale: states where property is located, purchase price, property is located, purchase price, amount of down payment, when can amount of down payment, when can move inmove in
Earnest money – money paid to show Earnest money – money paid to show you are interested you are interested –When deal goes through this money When deal goes through this money is applied to your loanis applied to your loan
Abstract of title – reveals the true Abstract of title – reveals the true legal owner of propertylegal owner of property
Survey – land will be surveyed so you Survey – land will be surveyed so you know how much is yoursknow how much is yours
Secure a mortgage – take out a loan Secure a mortgage – take out a loan (usually 20-30 years)(usually 20-30 years)
Closing costs – fees/charges for Closing costs – fees/charges for settling the legal/financial matters of settling the legal/financial matters of a home (survey, etc)a home (survey, etc)– Can be thousandsCan be thousands
Title and deed Title and deed –Title – proof of the right to own Title – proof of the right to own the propertythe property
–Deed – legal document showing Deed – legal document showing that the title is transferred from that the title is transferred from one person to anotherone person to another
Insurance – usually required if Insurance – usually required if taking out a loantaking out a loan
What if I took out a 30 year loan, What if I took out a 30 year loan, but now I can pay more each but now I can pay more each
month?month?Refinance – adjust your loan Refinance – adjust your loan
paymentspayments–it may cost money to it may cost money to refinancerefinance
–Good idea of interest rates Good idea of interest rates have droppedhave dropped