Unit 3 - Concepts of Home Ownership Flashcards
Define Apartment Complexes
Groups of apartment buildings with any # of units in each building
Define Condominium
A form of residential ownership without the care or maintenance a house demands
Define CoOperative
Similar to condos but the owners don’t own the units, instead they buy stock in to corporation that owns the building
Define Planned Unit Development (PUD)
Merge diverse land uses such as housing, recreational facilities and commercial concerns
Define Mixed Use Developments (MUD)
Combined office spaces, stores, theaters & apartment units
Define Modular Homes
Preassembled at a factory and driven to the building site
What are the financial circumstances to consider when purchasing a property?
How long a person wants to live in that area
Their financial situation
Housing affordability
Mortgage Interests Rates
What are the basic costs of owning a home?
Principle Interest Taxes Insurance (PITI)
Define Gain
A sale that brings more money in than the owner paid
Define Equity
The increase in ownership interest
What are the tax deductions on capital gains?
$250k for singles
$500k for married couples
Define Exchanges
The defer of taxes on capital gains by exchanging properties
Define Boot
The receipt of cash gain or lessening of mortgage debt
When must taxes on a Boot be paid?
At the time of the exchange
Define a Homeowners Insurance Policy
Insurance against destruction of property by fire, windstorm, injury and theft of property
