Chapter 3 - Part 1

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Chapter 3 - Part 1
2010-03-15 18:24:56
Real Estate Practice

Concepts of Ownership
Show Answers:

  1. Name 10 types of Housing
    • Apartments
    • Condominiums
    • Cooperatives
    • Planned Unit Developments (PUDS)
    • Retirement communities
    • High rise developments (MUDS)
    • Converted use Properties
    • Manufactured Housing
    • Modular Homes
    • Time Shares
  2. These owners own their own units individually and share ownership of common elements.
  3. Master Planned Community - merges diverse land uses - require special zoning ordinances
    Planned Unit Developments (PUDS)
  4. 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.
  5. Sometimes called a structured PUD
    Retirement communities
  6. Properties such as factories, warehouses, office buildings, hotels, schools, churches are converted into residential use.
    Converted-use properties
  7. Called a mobile home before 1976
    Manufactured home
  8. AKA prefabricated homes or "stickbuilt"
    Modular homes
  9. Multiple purchasers share ownership of a single property, usually a vacation home.
  10. By the end of 2005, what percentage of households were homeowners?
    68.88% (70%)
  11. 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.
  12. Name two organizations which offer low downpayment loans.
    • FHA - Federal Housing Administration
    • VA
  13. 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 _________.
    • 10%
    • 28%
    • 36%
  14. Name three financial advantages of Home Ownership
    • Appreciation
    • Equity
    • Tax Deduction
  15. Current market value less debt on home =
  16. 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 ____________.
    • 500,000
    • 2 out of 5 years
    • 250,000
  17. First time homeowners may make penalty free withdrawals from ______________________ for downpayments.
    their IRAs
  18. 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.
    • 120
    • 10%