Unit 2 Review - Housing Needs

Question 1

What are the levels of Maslow’s?

Answer 1

Top level - Bottom level
1. Self Actualization
2. Self Esteem
3. Love and Belonging
4. Safety and Security
5. Physiological Needs

Question 2

What are some factors that affect housing choices?

Answer 2

-Values
-Space
-Family and Group Relationships
-Costs
-Lifestyle

Question 3

What is the family life cycle (in order)?

Answer 3

1. Beginning - early period of marriage when couple is without children
2. Childbearing - years of caring for a preschooler
3. Parenting - school-age to teen years
4. Launching - children leave home for college
5. Midyears - children leave home and parents retire
6. Aging - stage begins with retirement

Question 4

What are some location considerations?

Answer 4

-Region: specific part of the world, country, or state
-Community: may be large city, small village or rural area
-Neighborhood: consists of a group of houses

Question 5

What are the types of housing?

Answer 5

1. Multifamily houses
2. Rentals
3. Cooperative Units
4. Condominiums
5. Single Family

Question 6

What is the decision making process?

Answer 6

1. Identify the challenge or problem
2. List the possible alternatives or solutions
3. Make the best decision
4. Take action on the decision
5. Evaluate the results

Question 7

What are the budgeting categories?

Answer 7

Savings - 10%
Housing - 30%
Utilities - 10%
Food - 15%
Transportation - 10%
Insurance - 10%
Personal and Fun - 15%

Question 8

What is the difference between Gross and Net pay?

Answer 8

Gross: pay before taxes and deductions

Net: pay after taxes and deductions

Question 9

What are the steps of budgeting?

Answer 9

1. Know Your Income
2. Fixed Expenses
3. Variable Expenses
4. Prioritize
5. Review Monthly
6. Keep Track

Question 10

What are some pros of renting?

Answer 10

1. Cheaper Payments
2. No property taxes
3. Repairs are paid for
4. Easier to move
5. No down payments required

Question 11

What are some cons of renting?

Answer 11

1. Rent can increase
2. No tax benefits
3. Can’t modify without permission
4. Less ability, more rules

Question 12

What is a lease?

Answer 12

A legal document signed by both parties that spells out the parts of the rental agreement

Question 13

What should be in a lease?

Answer 13

1. Rental Amount
2. Security Deposit
3. Lease period
4. Utilities
5. Upkeep, maintenance, and repairs
6. Signatures

Question 14

What is eviction?

Answer 14

A legal procedure that forces a renter to leave the property before the rental agreement expires

Question 15

What is Renter’s Insurance?

Answer 15

As a renter you need to have insurance to protect against the loss of your personal property due to theft, fire natural disasters, or other causes

Question 16

What are the pros of buying?

Answer 16

1. Payments build equity = investment
2. Might be tax deductible
3. Customizable
4. Stability

Question 17

What are the cons of buying?

Answer 17

1. Risk of decreasing value
2. Pay for maintenance/upkeep
3. More difficulty when moving
4. Property taxes
5. Down payment = cash

Question 18

What is the home buying process?

Answer 18

1. Mortgage Selection and Pre approval
2. Search for a Home
3. Make an Offer
4. Finalize the Financing
5. Obtain Home Insurance
6. Obtain a Home Inspection
7. Schedule a Survey and Appraisal
8. Closing the Sale of a Home

Question 19

What are mortgage terms?

Answer 19

A mortgage is a type of amortized loan from the bank
- The amortization period is the
time to pay for the loan