Transcript lease agreement

Daily Information 5/7
Objectives:
Warm Up:
Agenda:
1. Discuss living
arrangements
with
housemates.
2. Describe
contractual
rights and
responsibilities
for landlords
and tenants.
Log onto your
computer and
check your grade
in infinite campus.
1. Warm Up
2. Roommates (Y/N)
3. Vocab.
4. “Moving Out” P.P.
5. Lease agreement
6. Research project
(Due Friday – 5/10)
The Mint
• http://themint.org/kids/what-is-your-credit-card-iq.html
• What is your credit card I.Q.?
• Take the spending challenge
• I paid how much?
Roommates
• Answer the questions in the handout
provided.
• Be prepared to share your answers
with a partner.
Daily Information 5/7/13
Objectives:
Warm Up:
Agenda:
1. Discuss longterm debt
options for the
purchase of
high-priced
items.
2. Explain the
purpose of a
debt repayment
plan.
Grab a textbook
and log onto your
computer.
1. Warm up
2. Long-term debt
P.P.
Open the “Group
Budget” document
in the webdesign
folder.
Daily Information 5/7/13
Objectives:
Warm Up:
Agenda:
1. Discuss longterm debt
options for the
purchase of
high-priced
items.
2. Explain the
purpose of a
debt repayment
plan.
Grab a textbook.
1. Warm up
2. “Moving Out”
P.P.
3. Lease
agreement
4. Long-term debt
P.P.
5. Research
project – due
Friday (5/10)
What living habits
and areas of
compatibility
should be
discussed before
moving in with a
roommate?
Roommates! Good or Bad?
• Why is it important to pick your
roommates carefully?
– Wrong decisions could lead to much
frustration and wasted money
– Discussing these issues ahead of time
allows you to have an idea of what it will
be like when you do move in therefore
reducing conflict later
After High School: Moving Out
• What responsibilities and obligations will you
have when you move out on your own?
• Financials: rent, security deposit, moving
costs, cost of living
• Daily Living: cooking, cleaning, laundry,
transportation
• Will you have a roommate?
• Shared responsibilities and obligations
Group Budget
Group budgeting allows allocation of expenses
so that each person pays his or her share.
When might it be appropriate for
roommates to pay unequal
amounts of money towards an
expense, such as 70% of the
rent instead of 50%?
Tenants
Rights
• To possess and enjoy the property
• To come and go and have guests
• To use common areas, such as pools
Responsibilities
• To use the property only as intended
• To care for the property and report repairs
• To obey the rules
Landlords
Rights
• To receive rent in a timely manner
• To inspect the property with notice
Responsibilities
• To provide a safe, sanitary, and habitable
living site
• To provide a convenient way to pay rent
• To keep security deposits in a separate
account and refund unused portions
Contracts
• To be legally binding, a contract
requires considerations (something of
value exchanged for something else of
value).
• Why would an oral contract be difficult
to enforce?
– No documentation or proof
• What is a lease agreement? Open your
textbook to page 253
Reading a Lease Agreement
• A lease is a property rental agreement that
lasts a year or longer.
• A month-to-month agreement means you can
leave with a 30-day notice.
• A lease gives you the security of knowing
property is committed for a fixed time period.
• Read a lease agreement carefully before
signing to avoid traps.
Using figure 8-1.2 on page 253, answer the
questions in the handout
Buying a Car
A car loan is usually an installment loan
with monthly payments.
• Make a down payment
(cash deposit) toward
purchase price.
• Can trade-in existing
car as down payment.
• Consider a preapproved loan, dealer
financing, or a lease (less money, limited
mile usage).
Loans
• Longer terms mean lower payments,
but more interest paid and a greater
chance for an upside-down loan (owe
more than it is worth)
• Refinancing: paying off an old loan with
a new loan (lower interest rates)
Auto Depreciation
• Loss of value from original price
• Cars lose value after driven off lot
– Becomes a used car
Buying a House
Advantages:
•
•
•
•
•
•
Build Equity
Appreciation (going up in value)
Tax advantages
Security
Independence
Privacy
Buying a House
A mortgage is a long-term debt
agreement used to purchase real estate.
• A down payment of 10 to 20 percent of the
purchase price is often required.
• Property is used as collateral for the loan.
• A conventional loan lasts up to 30 years.
• Closing costs are expenses paid to get a loan,
such as appraisal fees and credit report fees.
FHA Loans
• First time homebuyers
– Smaller down payment
– 3.5% down
– Average 640 credit score required
What Is a Debt Repayment Plan?
A debt repayment plan is a strategy for
paying off debt to reduce interest paid.
Fixed-rate mortgage vs. Adjustable-rate mortgage
Paying Down Debt
Student Loans:
• Payments can be deferred
– Start 6 months after no longer registered for
class
– Can choose to make payments early but not
required
• Multiple loans can be consolidated
– Lower monthly payment
Paying Your Mortgage
• Choice of 15 year or 30 year
– Affects monthly payment and interest rate
• Balloon Payment
– Final payment is higher
– Could have a lower interest rate
– Lower monthly payments
Rent-to-Own
• Portion of rent is applied to purchase
• Price is locked in
• Used for homes and other items
(furniture, electronics)
• Also known as right of first refusal
• Can be costly
Daily Information 5/8
Objectives:
Warm Up:
Agenda:
1. List ways to
reduce your
credit costs and
lower your
dependence on
credit.
2. Explain how to
avoid deceptive
credit practices.
What are some
of the ways
people can
overextend their
credit?
1. Warm Up
2. Vocab.
3. Credit
management P.P.
4. Credit and debt
management
activity
5. Bottom Line
List three
examples.
Managing Credit Usage
• Establish credit so it will be
available in the future.
• Pay bills on time to build a
solid credit history.
• Pay entire balance monthly
to avoid interest charges.
• Establish a cash fund
(savings account) and have
unused credit.
Saving Your Money
As your pay increases, why should you
plan to save most or all of that increased
income?
Economy and Loans
In a good economy
– People are optimistic about future income and
buy more, interest rates tend to rise
– This is a good time to save money and earn
interest (bank/investments)
In a bad economy
– People are pessimistic about future income and
buy less, interest rates tend to drop
– This is a good time to buy because you can get
better values!
Evaluate Credit Offers
Compare disclosure terms
o
o
o
o
o
o
o
o
Grace period
Annual fees
Minimum finance charge
Interest rates (fixed vs. variable)
Transaction fees (transfer balances)
Cash advance fees (high interest fees)
Late fees (can increase interest rate)
Over-the-limit fees (can increase interest rate)
Debt Load
• The amount of outstanding debt at a
particular time
• Debt represents future earnings already
spent
– How much future income have you already
committed to debt? Keep Track!
Avoid Unnecessary Credit Costs
•
•
•
•
•
Limit the number of credit cards
Comparison shop for credit cards
Consider special deals and financing
Get cash rebates and rewards
Pay bills on time or early
Avoid Unethical Loan Practices
• Loan shark: illegal unsecured loans at high
interest rates
• Advance-fee loan: a large upfront fee, then
loan denied and fee non-refundable
• Equity stripping: issuing a loan to a
homeowner who cannot afford it, then
taking possession of the home
Group Budget Activity
• Open group budget activity in the
webdesign folder, complete, save as
lastnamefirstname in the group budget
activity folder.
Slide 32
Chapter 8 Review Questions
• Part 1 (page: 256)
– Key Terms Review: 2-9
– Check Your Understanding:
12,13,14,16,18,20
– Think Critically: 26,27
Chapter 8 Review Questions
• Part 2 (page: 265)
– Key Terms Review: 1-9
– Check Your Understanding:
10,11,12,13,14,15,16
– Think Critically: 21,22,23,26,27,28
Chapter 8 Review Questions
• Part 3 (page: 273)
– Key Terms Review: 2-8
– Check Your Understanding:
9,10,11,15,16,18
– Think Critically: 22,23,24,28,29