Lesson 11.5 True Cost of Owning a Home July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved1 Introduction Many first-time buyers make a

Lesson 11.5True Cost of Owning a Home

July 2011 Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved 1

Introduction

Many first-time buyers make a serious financial mistake

They earn enough to pay the Monthly Payment --

But they don’t earn enough to pay the other costs associated with owning!

These additional costs are an integral part of homeownership.

Being unable to pay your property taxes is just as bad as not being able to pay the monthly payment – maybe

worse!



ObjectivesYou should be able to do the following after completing this

lesson.

• List common expenses included in owning a home• Discuss the advantages of being a homeowner

• Explain why home equity so important

• Identify what home equity should be used for

• Review what is included in home maintenance

• Summarize why a maintenance fund is essential• Describe the “forgotten” expenses of owning a

home• Define the key terms introduced in this lesson



11.5.1 – Total Cost of Owning

• What is included in the total cost of owning a home

• What the typical re-occurring monthly expenses are

• Why you should be prepared for both expected and unexpected expenses

• What expenses you will pay at closing

• When to expect expenses to happen

• What advantages come from owning a home

In this section, you will learn



11.5.2 – Home Equity

• Why a home is typically the largest investment for many people

• Why home equity is critically important


• What has happened to home equity in recent years

• What factors increase your home equity

• What are some acceptable uses of home equity

• Home Equity Example

You will run the following Interactive Example



11.5.3 – Tax Advantages

• What advantages owning provides that renting doesn’t• How owning can reduce the income taxes you must pay

• What one-time tax deductions come from owning• What you can do with the mortgage interest

and property taxes every year

• Why homeownership provides other types of advantages




11.5.4 – Home Maintenance and Repairs

• Why it is importance to do home maintenance and repairs• What is included in home maintenance

• What common home repairs are


• What determines the cost of home maintenance and repairs• Why you should not ignore home maintenance

• Why you should create a home maintenance fund



11.5.5 – Miscellaneous Costs

• Why the miscellaneous costs are different for new homes and existing homes

• What it costs to move into your new home


• What miscellaneous costs you can expect after moving in

• Total Cost of Homeownership Exercise

You will run the following Interactive Exercise



Discussion Questions

If you had lots of money, would you rent an apartment or buy a home?

Is it realistic for some people to never buy a home?

Documents

Lesson 11.5 True Cost of Owning a Home July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved1 Introduction Many first-time buyers make a