Personal Finance Chap 7

Previously owned houses, new houses and custom-built houses are often referred to as.

single-family dwellings

Which of the following are disadvantages of buying housing?

-Limited mobility (difficult to move) -Significant financial commitment

Tenants are often subjected to restrictions regarding ______ and remodeling.

pets

The tenant is protected from rental increases during the lease term unless the lease contains a(n) ______ allowing for increases.

provision

Which of the following are the advantages associated with renting an apartment?

-Easy to move (mobility) -Less maintenance than owning -Minimal financial commitment

What are some of the expenses (other than the rent payment) that you would incur if you were to rent a unit?

-Electricity -Heat -Cable television

Which of the following are disadvantages associated with renting?

-Limitations on remodeling -No federal tax benefits -Restrictions on pets (no pets) and certain activities

Which of the following are advantages of buying housing?

-Many remodeling or customization possibilities -Significant tax benefits

What are some of the disadvantages of home ownership?

-Significant financial commitment -Limited mobility when compared to renting -Higher living expenses than renting

The financial variables to consider when determining an appropriate amount for your housing expenses include which of the following?

-home cost -Income -take-home pay

The advantages of owning a home include:

-tax benefits -personalized living location -stability of residence

Traditional guidelines suggest spending no more than ___ times your annual income on housing.

2 1/2

Traditional guidelines suggest that you should spend no more than _____ percent of your take-home pay on housing.

25-30

What are the advantages of owning a condominium?

Fewer maintenance responsibilities when compared to a house

Restrictions regarding pets and _____ are often enforced on tenants by landlords.

decorating

When renting, it is not recommended that one should get insurance coverage on personal property.

false

Tenants are protected from a rent _____ during the term of the lease unless the lease contains a provision allowing it.

increases

Your ______, needs, desires, and attitudes are reflected in your choice of a home.

lifestyle

Renters have a financial disadvantage because they cannot take tax deductions for ____interest.

mortgage

A ____ deposit is usually one month's rent that is held by the landlord to cover the cost of any damages to the rented property.

security

Renters have fewer responsibilities than home owners because:

tenants are not responsible for maintenance or repairs

A security deposit covers the cost of damages that may be done to a rental unit.

true

Every buying decision is a statement about your lifestyle.

true

One of the reasons why renting offers fewer financial benefits than home ownership is that rent is not tax deductible while the interest on mortgage payments is.

true