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I. Buying a Home
The American Dream in Decline. This chapter continues with the theme of building wealth . Historically in the U.S., owning a home has always been one of the best ways to build personal wealth and financial security. But times are changing and homeownership, once a staple of The American Dream, is on the decline. The U.S. Census Bureau tracks homeownership rates by region, age, race, and household income. According to the Census Bureau, homeownership rates are the lowest since 1965 with just 62.9% of Americans now owning their home . In fact, the U.S. ranks a sad 41st in the world in rates of homeownership. This is an unfortunate trend because, while buying a home can be an ambitious and difficult financial goal to reach, the long term benefits of homeownership can be substantial. Let's explore some of the benefits and challenges of homeownership. Types of Homes. Before getting into the particulars of buying and paying for a home and the benefits of owning a home, let’s look at some common types of residential properties that make up a home. Let’s House Hunt and Hunt and Hunt… It is estimated that homebuyers look at 15 houses on average, before buying one. Source: U.S. Dept of Housing and Urban Development Fin Lit Trivia Fin Lit Trivia Fin Lit PRODUCT PREVIEW Type of Housing Details Single family home • free standing building intended as a dwelling for one family which sits on its own lot • the owner of the home owns the structure and the land • also called a Single Family Residence or “SFR” Condominium • also called a “condo” • a single unit within a larger building of multiple units, each of which is separately owned • common areas of the condominium property, such as the grounds and building structure, are owned jointly by all of the unit owners Cooperative (co-op) • similar to a condo in terms of the living arrangement
• each homeowner is a partial owner of the entire building , along with the other owners but with a right to occupy their designated unit • individual houses that are placed side-by-side • one or two walls of each house are shared between adjacent homes
Townhouses
THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY 153
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