Housing Hustle SlidesHousing Hustle Navigating the World of Renting vs. Buying Life Skills 101 The Big Question "Is it better to rent an apartment or buy a house?" Renting Paying someone else to live in their property. Buying Investing in a property you will eventually own. Renting 101 Flexibility Easier to move when your lease ends. Maintenance The landlord fixes the leaky faucet! Lower Entry Cost Usually just a security deposit and first month's rent. The Downside No equity (you're not building wealth) Rent can increase every year Rules (no pets, no painting walls) Buying 101 Equity & Wealth You're paying yourself! The home is an asset. Freedom Paint it pink! Renovate! It's yours. Fixed Payments Fixed-rate mortgages don't change for 30 years. The Reality Huge upfront cost (Down payment) Maintenance is YOUR problem Property taxes and insurance More Than Just the "Price" Insurance Renter's Insurance vs. Homeowner's Insurance Utilities Electricity, Water, Trash, Gas, Internet Maintenance 1% of home value per year for buyers! The 30% Rule Financial experts recommend spending no more than 30% of your gross monthly income on housing. Calculation: Gross Income \(\times\) 0.30 = Max Housing Budget Let's Do the Math The Rental Rent: $1,200 Renter's Ins: $20 Electricity: $80 Internet: $60 Total: $1,360 The Home Purchase Mortgage: $1,100 Property Tax: $150 Home Ins: $100 Maint. Fund: $200 Total: $1,550 Which would you choose? Personal Priority Budget Constraints Location Needs
Housing Hustle Guided NotesHousing Hustle Guided Notes: Renting vs. Buying Name: Date: Basic Definitions Renting: Paying a monthly fee to a ____________________ to live in a property they own. Buying: Taking out a loan (mortgage) to ____________________ a property and build ____________________. Renting 101 Pros Cons Buying 101 Pros Cons The 30% Budgeting Rule Spend no more than 30% of your Gross Monthly Income on housing. Income × 0.30 = Hidden Monthly Costs Utilities Insurance Property Tax Internet Maintenance HOA Fees Final Thought Why is it important to include "hidden" costs in your monthly housing budget?
The Monthly Math WorksheetThe Monthly Math Worksheet: Calculating Housing Costs Life Skills | Budgeting Part 1: The 30% Rule Calculate the maximum monthly housing budget for each person based on their gross monthly income. Alex IT Tech ($3,500/mo) $3,500 × 0.30 = Jordan Retail Manager ($4,200/mo) $4,200 × 0.30 = Part 2: Comparison Challenge Jordan (from Part 1) is choosing between renting and buying. Calculate the totals. Option A: Renting <table class="w-full text-sm"><tbody><tr class="border-b border-slate-100"><td class="py-1">Base Rent</td><td class="text-right font-mono">$1,150</td></tr><tr class="border-b border-slate-100"><td class="py-1">Renter's Insurance</td><td class="text-right font-mono">$18</td></tr><tr class="border-b border-slate-100"><td class="py-1">Utilities (Electric)</td><td class="text-right font-mono">$75</td></tr><tr class="border-b border-slate-100"><td class="py-1">Internet/WiFi</td><td class="text-right font-mono">$60</td></tr><tr><td class="pt-6 font-bold text-base">TOTAL:</td><td class="pt-6 text-right"><div class="inline-block w-36 bg-blue-50 border-2 border-blue-400 h-12 rounded"></div></td></tr></tbody></table> Option B: Buying <table class="w-full text-sm"><tbody><tr class="border-b border-slate-100"><td class="py-1">Mortgage</td><td class="text-right font-mono">$980</td></tr><tr class="border-b border-slate-100"><td class="py-1">Property Taxes</td><td class="text-right font-mono">$145</td></tr><tr class="border-b border-slate-100"><td class="py-1">Home Insurance</td><td class="text-right font-mono">$85</td></tr><tr class="border-b border-slate-100"><td class="py-1">Condo HOA Fee</td><td class="text-right font-mono">$150</td></tr><tr class="border-b border-slate-100"><td class="py-1 font-medium">Maintenance Fund</td><td class="text-right font-mono">$150</td></tr><tr><td class="pt-6 font-bold text-base">TOTAL:</td><td class="pt-6 text-right"><div class="inline-block w-36 bg-emerald-50 border-2 border-emerald-400 h-12 rounded"></div></td></tr></tbody></table> Part 3: Decision 1. Based on Jordan's budget from Part 1 ($1,260), which option(s) can Jordan afford? Explain why. 2. If the HVAC system (heater/AC) breaks in the condo, who is responsible for the $3,000 repair cost?
Housing Hustle AssessmentHousing Hustle Assessment Life Skills: Housing & Finance Score: Student Name: Date: A Multiple Choice 1. Which of the following is typically a benefit of renting an apartment? Building equity in the property Lower maintenance responsibilities Fixed payments for 30 years Total control over renovations 2. What does the "30% Rule" suggest regarding housing costs? You should save 30% for a down payment 30% of income should go toward utilities Spend no more than 30% of gross income on housing Housing costs will increase by 30% each year 3. Which of these is a "hidden cost" specific to home buying (not renting)? Electricity bill Internet service Property taxes Groceries B Calculation Casey earns $4,000 per month before taxes. Casey finds an apartment for $1,350 per month. a. Calculate Casey's maximum recommended housing budget (30% rule): Show Work Here: Final Answer: $________ b. Is the $1,350 apartment within Casey's budget? Why or why not? C Short Response Define Equity and explain why it is considered an advantage for home buyers.
Housing Hustle Teacher GuideTeacher Guide Housing Hustle: Renting vs. Buying Unit Resource Lesson Overview Objectives: Compare renting vs. buying a home. Apply the "30% Rule" to a gross monthly budget. Identify hidden monthly costs (HOA, Taxes, Insurance). Key Vocabulary: Equity, Mortgage, Renter's Insurance, Gross Monthly Income, HOA, Maintenance Fund. The Monthly Math Key Part 1: 30% Rule Alex: $1,050 | Jordan: $1,260 Part 3: Decision 1. Neither. Both options ($1,303 & $1,510) exceed Jordan's budget limit of $1,260. 2. Jordan (The Owner) is responsible for all repairs. Part 2: Option A (Rent) $1,303 Part 2: Option B (Buy) $1,510 Assessment Key MC 1: B (Lower maintenance) MC 2: C (Max 30% gross income) MC 3: C (Property taxes) Calc: $4,000 × 0.30 = $1,200 Budget? No. $1,350 > $1,200. Equity: Home value minus debt; it builds wealth as loan is repaid and value grows. Discussion Starters "Why might someone choose to rent even if they could afford to buy?" "What happens if your rent increases but your salary doesn't?" "How does a down payment change the monthly cost conversation?"
