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Lesson 7 - Overview

Lesson 7 -   Selecting and Financing Housing

 Objectives

Upon successful completion of this lesson, students will be able to:

LO7.1

 Assess costs and benefits of renting.

LO7.2

 Implement the home-buying process.

LO7.3

 Determine costs associated with purchasing a home.

LO7.4

Develop a strategy for selling a home.

 

Overview

Although the concept of  lifestyle —how you spend your time and money—may seem intangible, it materializes in consumer purchases. Every buying decision is a statement about your lifestyle. Personal preferences are the foundation of a housing decision, but financial factors may modify the final choice.

Traditional financial guidelines suggest that “you should spend no more than 25 or 30 percent of your take-home pay on housing” or “your home should cost about 2½ times your annual income.” Changes in various economic and social conditions have resulted in revised guidelines. Your budgeting activities and other financial records will provide information to determine an appropriate amount for your housing expenses.

Read:

Chapter 7 (LearnSmart)

 

View:

Chapter 7 Narrated Slides Links to an external site.

Download Chapter 7 PowerPoint

Chapter 7 Videos

Closing Costs (Links to an external site.)

Housing Affordability Calculation (Links to an external site.)

Comparing the Cost of Renting and Buying (Links to an external site.)

Types of Mortgages (Links to an external site.)

 

Discuss:

Download PF Ch 7 Discussion Outline.docx

 

Project:

Scenarios:

Home:

  • Family of 5
  • You need a home with 3 bedrooms and 2 bathrooms
  • Family income 60,000 a year.
  • Other debt is $700
  • Use 38 percent of monthly gross income as a guideline for what you can afford).  (See p. 230, Exhibit 7-6, Example A)

Car:

  • Family of 5
  • Want a car that is less than 4 years old
  • Can afford a maximum monthly payment of $300

Helpful file(s) and information:

 

Submit:

Connect and LearnSmart (Links to an external site.)

  • LearnSmart (estimated 45 minutes, but will vary by user)
  • Chapter 7 Homework (5 questions, You may want to wait until after math lesson in class.)