Security deposit – a refundable amount a renter pays in advance to protect the owner against damage or nonpayment.

Mortgage – a loan to purchase real estate.

Landlord – the owner or owner’s representative of rental property.

Tenant – a person who rents property.

Lease – a written agreement that allows a tenant to use property for a set period of time at a set rent payment.

Down payment – the amount paid at purchase to bring down the amount owed.

Closing costs – the expenses incurred in transferring ownership from buyer to seller in a real estate transaction.

Think about the housing choices of your older siblings or friends who recently moved into a place of their own.

Share - Where are they living? How do they feel about living in their own home? How does it compare to living with their family?

Physical needs – shelter from elements, safe place for possessions, space for personal activities

Emotional needs – privacy and personal expression

Social needs – gather with family and friends

It all depends on the size and location.

You must determine what you can afford.

You will need a security deposit and probably first and last month’s rent.

Utilities – may be included or separate (make sure you find out up front)

Furniture and Appliances – you may have to provide them, may not.

Insurance – a cost you need to plan in budget

Rent or Mortgage – actual monthly payment

Being a homeowner adds property taxes to the cost of housing.

Spend no more than 1/3 of gross pay on housing

Renting or Buying – it’s not just finances

Shared Housing › You can have roommates › You can stay with family

Either way – know what you are getting into

Cities› Offer great cultural experience,

entertainment and shopping › Crowded and noisy

Suburban Areas› Access to the city without the drawbacks

Rural Areas› Small community away from city life

What are some of your opinions about the locations above?

Familiarity› Friends and family› Security

Desire for Change› Challenge for something different

Lifestyle Considerations› Live near school or work/commute› Climate, physical features, low cost

Practical Considerations› Transportation, shopping

It is a Landlord and Tenant relationship Advantages

› It is fixed expenses› There is greater flexibility› You have more free time – less

maintenance› There is a lower insurance cost

Disadvantages› There are restrictions› There are financial drawbacks› You have limited control

Selecting a Rental› Go beyond floor plan and decorations› Consider location – safe and near things› What utilities are included?

Signing a lease› It is an agreement› It is a legal and binding document› You will probably need deposits

Advantages:› There is stability – you won’t get kicked out› There is greater freedom – you can do

what you want with the place› The home will have investment value› There are tax advantages

Disadvantages› There can be unexpected expenses› There will be time spent on maintenance› You have reduced mobility

Buying Procedures› Decide: Needs, Wants, Price range› Check on: Safety, convenience & stability› Get agent and shop around› You then make an offer & negotiate

Financial Considerations› Know the monthly installments› Know the up front & one-time costs

Down payment (5-20%) Closing costs

› A home is usually the most significant purchase anyone makes - it should be done wisely.

You can investigate housing prices in different locations that are interesting to you (pick several students)

http://www.craigslist.org/about/sites#US

http://www.zillow.com/

http://www.trulia.com/