These owners own their own units individually and share ownership of common elements.
Master Planned Community - merges diverse land uses - require special zoning ordinances
Planned Unit Developments (PUDS)
These owners have units that share walls and facilities within a larger building, but do not own their own units. Instead a corporation holds tehy deed and the owners hold shares in the corporation.
Sometimes called a structured PUD
Properties such as factories, warehouses, office buildings, hotels, schools, churches are converted into residential use.
Called a mobile home before 1976
AKA prefabricated homes or "stickbuilt"
Multiple purchasers share ownership of a single property, usually a vacation home.
By the end of 2005, what percentage of households were homeowners?
The decision whether to buy or rent involves:
1. How long a person wants to live in an area
2. A person's financial situation
3. Housing affordability
4. Current mortgage interest rates
5. Tax consequences of owning vs renting
6. What may happen to home prices and tax laws in the future.
Name two organizations which offer low downpayment loans.
FHA - Federal Housing Administration
In the past, the formula for homeowners who could provide at least _______ downpayment was mortgage and PITI could not exceed ______ of gross income and all debts (excluding health ins. utilities, and medical care) could not exceed _________.
Name three financial advantages of Home Ownership
Current market value less debt on home =
For married couples _______________ is now excluded from capital gains tax for profits from sale of a home as long as they have lived there ___________.
For a single person, that amount is ____________.
2 out of 5 years
First time homeowners may make penalty free withdrawals from ______________________ for downpayments.
If a first time homeowner borrows from their IRA for a downpayment on their home, they must pay taxes on the withdrawal. The limit is $10,000 and must be used within ________ days to avoid the _______ withdrawal penalty.