【正文】 generally, owneroccupied units are better maintained. ? Determine if there is sufficient parking space. Chapter 5 36 ? Watch for unusually low maintenance fees that may have to be increased soon. ? Consider the resale value. For new developments, pare the projected monthly homeowner’s fees with those of similar buildings already in operation. For older developments, check to see when capital improvements such as exterior painting and roof replacement were last made. Special assessments are usually levied on all unit owners for major costly improvements. Chapter 5 37 ? Cooperative apartments: In a cooperative apartment, or coop, building, each tenant owns a share of the nonprofit corporation that owns the building. Residents lease their units from the corporation and pay a monthly assessment in proportion to ownership shares, based on the space they occupy. These assessments cover the cost of services, maintenance, taxes, and the mortgage on the entire building and are subject to change, depending on the actual costs of operating the building and the actions of the board of directors, which determines the corporation’s policies. Chapter 5 38 The cooperative owner receives the tax benefits resulting from interest and property taxes attributable to his or her proportionate ownership interest. Drawbacks of coop ownership include difficulty in obtaining a mortgage (because many financial institutions don’t like taking shares of a corporation rather than property as collateral), rent increases to cover maintenance costs of vacant units, and the need to abide by the capital improvement decisions of the coop board of directors, which can increase the monthly assessment. abide [??baid] Chapter 5 39 ? Rental units: Some individuals and families choose to rent or lease their place of residence rather than own it. They may be just starting out and have limited funds for housing, or they may be uncertain where they want to live. Perhaps they like the shortterm mitment and limited maintenance. The cost and availability of rental units varies from one geographic area to another. Chapter 5 40 Rental units range from duplexes, fourplexes, and even singlefamily homes to large, highrise apartment plexes containing several hundred units. Renting does e with restrictions, however. For example, you may not be allowed to have a pet or make changes to the unit’s appearance. Chapter 5 41 The Rental Option Many people choose to rent rather than buy their home. For example, young adults usually rent for one or more of the following reasons: (1)they don’t have the funds for a down payment and closing costs, (2) they’re unsettled in their jobs and family status, (3) they don’t want the additional responsibilities associated with homeownership, Chapter 5 42 or (4) they believe they can afford a nicer home later by renting now because housing market conditions or mortgage rates are currently unattractive. A big drawback of renting is that the payments are not tax deductible. Chapter 5 43 The RentorBuy Decision Owning a home is not always more costly on a monthly basis than renting, although there are many other factors to consider before making this important decision. The economics of renting or buying a place to live depends on three main factors: (1)housing prices and mortgage interest rates, (2) tax writeoffs for homeowners, and (3) the expected increase or decrease in home values over time. Chapter 5 44 LG4 HOW MUCH HOUSING CAN YOU AFFORD? Buying a home obviously involves lots of careful planning and analysis. Not only must you decide on the kind of home you want (its location, number of bedrooms, and other features), you must also consider its cost, what kind of mortgage to get, how large a monthly payment you can afford, what kind of homeowner’s insurance coverage to have, and so forth. Chapter 5 45 Benefits of Owning a Home Homeownership is important to most people, whether they own a detached home or a condominium. It offers the security and peace of mind derived from living in one’s own home and the feeling of permanence and sense of stability that ownership brings. This socalled psychological reward is not the only reason people enjoy owning their home. There are also financial payoffs from homeownership. Chapter 5 46 ? Tax shelter: As noted in Chapter 3, you can deduct both mortgage interest and property taxes when calculating your federal and, in most states, state ine taxes, reducing your taxable ine and thus your tax liability. The only requirement is that you itemize your deductions. This tax break is so good that people who have never itemized usually begin doing so after they buy their first house. Chapter 5 47 Also keep in mind that, for the first 15 to 20 years of ownership (assuming a 30year mortgage), most of your monthly mortgage payment is made up of interest and property taxes—in fact, during the first 5 to 10 years or so, these could well account for 85% to 90% of your total payment. This allows you to write off nearly all of your monthly mortgage payment. Chapter 5 48 ? Inflation hedge: Homeownership usually provides an inflation hedge because your home appreciates in value at a rate equal to or greater than the rate of inflation. For example, from 2022 through 2022, a home became one of the best investments you could make, generating a far better return than stocks, bonds, or mutual funds. Many people bought homes simply for their investment value. Chapter 5 49 The low inflation coupled with low mortgage rates resulted in rapid appreciation in home prices during that perio