1 / 0

Renting Vs. Owning

Renting Vs. Owning. The right to use something someone else owns. Renting. You have exclusive rights to some type of property. Owning. A rental agreement It lays out the terms of your agreement How much you owe every month How long you will stay The two most familiar types of leases are:

field
Download Presentation

Renting Vs. Owning

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Renting Vs. Owning

  2. The right to use something someone else owns Renting
  3. You have exclusive rights to some type of property Owning
  4. A rental agreement It lays out the terms of your agreement How much you owe every month How long you will stay The two most familiar types of leases are: Renting a house or apartment Leasing a car Lease
  5. A type of loan use to finance the purchase of real estate. Mortgage
  6. Depreciating Assets: Something you own that decreases in value over time Appreciating Assets: Something you own that increases in value over time. Depreciate and Appreciate
  7. If you buy something you have ____________________ over it and ___________________ for it. Control Responsibility Buying vs. renting
  8. If you rent, maintenance usually is not your ______________________. You sign a __________ with the landlord that specifies the terms. You are the _________________ and the landlord is the __________________________. Responsibility Lease Lessee Leaser Renting
  9. How long do I plan to live in the area Can I afford a mortgage right now What are housing prices like When buying a house Ask yourself
  10. How far do I need to travel How long do I plan to keep the car Will it be easy to sell Do I even need a car How much money would I save without one. Questions to Ask yourself about Transportation
  11. A __________________ is just a fancy term for a loan. A loan that is used to finance the purchase of real estate is called a ________________________. Mortgage Mortgages
  12. When you go to get a mortgage, shop around to get the best ___________ you possibly can. Terms Mortgages cont.
  13. Interest is fixed for the period of the loan. It is usually for 15 or 30 years Fixed Rate Mortgage
  14. Interest rate can vary from month to month Adjustable Rate Mortage Rates can go down, but mostly go up. 
  15. Usually has a lower interest rate to start, but has a big payment at the end. Balloon Payment Loan
  16. You will default on your mortgage The bank can foreclose on your property and take your house It will ruin your credit rating. What happens when you don’t pay your mortgage?
  17. Full ownership You can sell it and try to make some money back It is a depreciating asset, you will get back less than you paid Advantages and disadvantages of buying a car
  18. Monthly lease payments tend to be lower than car payments. You don’t have to worry about selling the car when you are done with it. Advantages of Leasing a car
  19. A long time rental agreement for a car or other type of vehicle A lease is…
  20. Does the dealer set maximum mileage per year and charge you if you go over the maximum mileage limit? YES Is there a wear and tear requirement? If you let the car get to banged up, do you get charged? YES Leasing cont.
  21. Gas Insurance Maintenance Leasing Expenses
  22. What option do you have if you don’t own a car? Public transportation Bicycle Transportation options
  23. When you apply for a mortgage, the bank will look at your credit rating to see what mortgage terms you qualify for. Buying Basics
  24. When you own a house you are responsible for all _____________ and __________ ______________. Maintenance Utility Bills Buying basics cont.
  25. To make sure you pay your mortgage, the bank has a ______________ on the property. Lien This means : If you don’t pay your mortgage, the bank has a right to take your house Buying Basics cont.
  26. Advantages: Full ownership, you can do what you want with the property No landlord raising the rent It will increase in value over time Disadvantage You will need lots of money for a down payment Advantages and Disadvantages of owning a house
  27. ____________ is usually what people do when they are just starting out. The landlord takes care of _______ ________. Renting Building maintenance Sometimes Utilities ( ___________ and __________) are included in your rent. Electric and water Renting
  28. Advantages More flexibility, you do not have to worry about selling Disadvantages Have to follow landlord rules, NO pets Increase in rent due to increase in utility cost If you break the lease, you may have to pay a penalty. Advantages and Disadvantages to renting
  29. Full ownership (own your own house) Rent Live with mom and dad Housing options
  30. Are renting and leasing basically the same thing? Yes Renting vs leasing
  31. Appreciating assets ___________________ over time. Increase Depreciating assets ____________________ over time. Decrease
More Related