Real Estate Exam - Chapter 3: Concepts Of Home Ownership

Real Estate Exam - Chapter 3: Concepts Of Home Ownership
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Condo - what do you own?
Own the studs in of single. Has shared / common areas.
Do not actually own the unit. Own an Interest / Stock in the unit.
Planned-Unit Developements i.e. Retirement Community
Mixed-Use Development i.e. High rise with stores / cinema in it / combo of things
Converted-Use Properties
Manufactured Housing
Modular Homes
1) Something thats been converted into residential i.e. Warehouse, School, Factory etc
2) = Mobile Home
3) Pre-fabricated. Each room made separate and dropped onto foundation by crane
4) Own time
Basic costs of owning a home: PITI
Mortgage Principle and Interest, Taxes, Insurance.
Remember 28% - Housing allowable
36% - Housing and other Debts allowable
Tax Benefits oh home ownwership:
$500,000 excluded from capital gains tax on proftis of sale by Married taxpayers filing jointly
$250,000 Single filing
Equity is:
Increasing ownership interest and Represents the paid-off share of a property, not mortgaged. i.e. difference between Current Market Value (what you paid) and Property Debt (what you still owe)
Homeowners Insurance:
Basic Form
Broad Form
Basic: Fire, Riots, Smoke etc
Broad: Frozen Pipes, Ice, Snow
Flood: Separate Insurance required by bank based on town maps of flood zones.

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