Unit 3 Summary Flashcards
(9 cards)
Cooperatives, apartment complexes, condominiums, planned unit developments (PUDs), retirement communities, highrise developments, converted-use properties, modular homes, mobile homes, time-shares/time-uses, residential housing
These trends reflect diverse living arrangements and ownership structures.
What are some current trends in home ownership?
Financial security, pride of ownership
Home ownership can provide stability and a sense of accomplishment.
What are some advantages of home ownership?
Initial price, continuing expenses, risks
These factors can affect the overall financial sustainability of owning a home.
What are some disadvantages of home ownership?
Deduct mortgage interest payments, property taxes from federal income taxes, exclude up to $250,000 (single) or $500,000 (married) in profit from capital gains tax
These benefits can significantly reduce the financial burden of home ownership.
What tax benefits are available to homeowners?
Homeowners must have occupied the property as their principal residence for at least two years out of the last five
This residency requirement ensures the exemption is applied fairly.
What is required to claim the capital gains tax exemption?
Fire, theft, liability
Homeowners can extend coverage to protect against additional risks.
What does a basic homeowners insurance policy typically cover?
Policyholder must maintain insurance equal to 80% of the replacement cost of the home
Failing to meet this requirement can result in partial compensation for losses.
What is a coinsurance clause in homeowners insurance?
Guaranteed replacement cost policies with coinsurance met
These policies provide full replacement coverage for the home.
What type of policies offer the most security for homeowners?
Flood insurance for properties in special flood hazard areas (SFHAs)
This requirement helps to mitigate risks associated with flooding.
What does the federal government require for certain mortgage loans?
