renting versus buying

Renting Versus Buying

Does renting or buying have less responsibility for maintenance

and upkeep?

Renting

Apartments, Houses, or Condominiums?

Owned by individuals and common parts of the property, such as the

grounds and building structure, are owned jointly by the unit owners?

Condominiums

True or FalseWhen making decisions about a

place to live, you should determine how much you can spend and stay

within your budget.

True

What does the term amenities refer to?

Swimming pools, exercise rooms, etc

What should be a lease before you sign?

Amount of rent and how it must be paid

What is the part of the purchase price paid in cash up front

referred to as?

Down Payment

Where should the rights and responsibilities of the tenant and

landlord be spelled out?

The lease

What should be purchased by anyone who rents a place to live?

Renter’s Insurance

True/FalseEveryone wants to own a home.

False

What is known as the money paid to provide some protection for the landlord for damage you

made to the apartment, cleanings fees, or other costs?

Security Deposit

If you do not want to do yard work, what should you consider

buying?

A condominium

True/FalseRenting an apartment offers a tax advantage over homeownership.

False

True/FalseBuying a house offers a tax

advantage over renting because homeowners can deduct the interest

they pay on a mortgage from their personal income taxes.

True

True/FalseIf you are unsure of your plans after college, you should buy a

house.

False

True/FalseIf you are unsure of your plans after

college, you should rent an apartment, either on a month-to-

month lease or with a lease that she can cancel if relocating.

True

True/FalseRenting an apartment is a

greater financial commitment than owning a house.

False

True/FalseOwning a house is a greater financial commitment than

renting an apartment.

True

What should you do with the inspection form given to you by

the landlord?

Complete the form, make a note of needed repairs, sign the form,

make a copy for yourself, and return it to the landlord

Who can cancel a month-to-month lease?

Tenant or Landlord

What are some of the costs associated with buying a house?

Down payments, points, and homeowner association fees

What is known as the deposit you pay when making an offer to

show you are serious about buying the house?

Earnest Money

True/FalseWhen negotiating an offer on a

house, your top priority is making an offer that you know the seller will

accept without further negotiations.

False

True/FalseWhen negotiating an offer on a

house, your top priority is making an offer that includes the contingencies

and details you want considered.

True

What type of mortgage should you considered?

Fixed rate mortgage

After working on a budget and you are ready to buy a house, how do you know how much

house you can afford?

Which is one of the disadvantages of renting?

Finding an apartment that will allow pets

What are some of the closing costs the buyer must pay?

Title InsuranceAttorney FeesSurvey Costs

PointsInspection Fees

What are homeowners responsible for paying?

UtilitiesProperty Insurance

Maintenance

True/FalseBuying a house is the most

expensive purchase most people make.

True

What is a good piece of advice for anyone considering buying a

house?

Buy a house you can afford

Who pays the utilities when renting an apartment?

Either by tenant or landlord

What percentage of your income is considered good when

purchasing a home?(house expense ratio)

28%

How can you reduce your monthly house payment?

Make a larger down payment

If the down payment on your house is less than 20% of the

house price, you may be required to pay ____ each month

with your mortgage payment.

Private mortgage insurance

Get pre-approved for a mortgage before looking for a place to buy