| Apartment complexes | groups of apartment buildings with any number of units in each building |
| Condominium | owners own their units individually and share ownership of common facilities (common elements) such as halls, elevators, swimming pools, clubhouses, tennis courts... |
| Cooperative | The owners do not actually own the units. A corporation hold title to the real estate. The unit owners purchase shares of stock in the corporation. Owners receive proprietary leases, not conventional deeds. |
| Planned unit development (UUDs) (master planned communities) | Merge diverse land uses - housing, recreation and commercial units in one self-contained development. Owners do not have direct ownership interest in the common areas. |
| Retirement Communities | Often structured as PUDs. |
| Highrise developments (mixed-use developments) MUDs | Combine office space, stores, theaters, and apartment units in a single vertical community. MUDs are usually self-contained and offer laundry facilities, restaurants, shops, etc.. |
| Converted-use properties | Factories, warehouses, office buildings, hotels, schools, barns, churches, and other structures that have been converted to residential use. |
| Manufactured housing ( mobile homes) | Can be located in "housing parks" in some communities providing hookups for gas, water, and electricity. |
| Modular homes (prefabricated homes) | Each room is pre assembled at a factory, driven to the building on a truck, then lowered onto its foundation by a crane. Later the structure is finished, plumbing and wiring is connected. |
| Time-shares | Multiple purchasers share ownership of a single property, usually a vacation home. |
| | Housing Affordability |
| Factors to buy or rent a property | - how long a person wants to live there
- financial situation
- housing affordability
- current mortgage interest rates
- tax consequences of owning versus renting
- what may happen to home prices and tax laws in the future
|
| Low down-payment mortgage loans | Available under programs sponsored by the Federal Housing Administration (FHA) and the Department of Veteran Affairs (VA) |
| Ownership expenses | Utilities, trash removal, sewer charges, maintenance repairs, real estate taxes, property insurance and mortgage loan with interest. |
| PITI | mortgage Principal and Interest, Taxes and Insurance |
| To determine if a buyer can afford a purchase | The monthly cost of buying and maintaining a home (mortgage payments, taxes and insurance) should not exceed 28% of gross (pretax) monthly income. The payments on all debts should not exceed 36% of gross monthly income. |
| Equity | The paid-off share of the property. Equity = Current Market Value - Property Debt |
| Tax Benefits | The property must be occupied at least two of the last five years. $500,000 is excluded from capital gains tax for profits by married taxpayers who file jointly. $250,000 - who file singly. |
| Tax Deductions | - mortgage interest on first and second homes (for mortgage balances below $1 mln or $500K if married filing separately.
- real estate taxes
- certain loan origination fees
- loan discount points
- loan prepayment penalties
|
| | Homeowner's Insurance |
| Basic form | Property coverage against: - fire and lighting
- glass breakage
- windstorm and hail
- explosion
- riot and civil commotion
- damage by aircraft, vehicles, smoke
- vandalism and malicious mischief
- theft
- loss of property removed from the premises when it is endangered by fire or other perils
|
| Broad form policy | - falling objects
- damage due to the weight of ice, snow, or sleet
- collapse of all or part of the building
- bursting, cracking, or bulging of a steam or hot water heating system
- accidental discharge, leakage, or overflow of water or steam
- freezing of plumbing, heating... domestic appliances
- injury to electrical appliances, devices, fixtures, and wiring
|
| Pubic liability coverage | For injuries or losses sustained within a unit of apartments or condominiums |
| Coinsurance clause | Requires that the owner maintains insurance equal to at least 80 percent of the replacement cost of the dwelling |
| Flood Insurance | Required in designated areas on all types of building. If the lowest part of the building is located above 100-year flood mark, the borrower may be exempted from the flood insurance requirement. |
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