Chapter 3 - Part 1
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Name 10 types of Housing
- Planned Unit Developments (PUDS)
- Retirement communities
- High rise developments (MUDS)
- Converted use Properties
- Manufactured Housing
- Modular Homes
- Time Shares
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
- Tax Deduction
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.
What would you like to do?
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