Chapter 3Concepts of Home Ownership

A variety of housing types are available under the general heading of home ownership: single family, small multifamily residences, and high-rise condos.

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3 Concepts of Home Ownership

• Learning objectives– Identify the various types of housing choices available to

homebuyers– Describe the issues involved in making a home ownership

decision– Explain the tax benefits of home ownership, and– Distinguish the various types of homeowners’ insurance

policy coverage

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3 Concepts of Home Ownership

• Types of housing– Apartment complex– Condominium– Cooperative– Planned unit development (PUD)– Retirement community

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3 Concepts of Home Ownership

• Types of housing– High-rise development– Converted-use property– Manufactured housing– Modular homes– Time-share

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3 Concepts of Home Ownership

• Housing affordability– Mortgage terms– Ownership expenses and ability to pay– Investment considerations– Tax benefits

6©2013 Kaplan, Inc.

3 Concepts of Home Ownership

• Homeowners’ insurance– Coverage and claims– Basic versus broad-form policies– Liability coverage– Coinsurance clause• Flood Insurance Program