TYPES OF HOUSING

THE SINGLE FAMILY RESIDENCE

This is a structure that is usually detached from any other house and has a yard.  It symbolizes the American dream of owning your own house.  You are responsible for the maintenance and taxes on the property, as well as payment for your electricity, gas and water. 

CONDOMINIUMS AND TOWNHOUSES

These are usually dwellings that are attached to other dwellings.  They may be in the form of high-rise buildings or single story structures.  There are those areas of the residence which belong exclusively to the owner and those areas that are owned in common with other condominium owners.  There may be a tennis court, swimming pool, parking areas, a club house, and/or a golf course, where the cost of maintaining the facilities are shared by all the condominium or townhouse owners.  Keep in mind that while a condominium may be less expensive than a house, the monthly Home Owners Association (HOA) fees you will have to pay for a condo may make your total monthly payments as high as the payments on a house.  Check to find out the HOA fees, as they vary for each condominium association.

These, too, may be owned, usually with the obligation to maintain the common areas.  (Elevators, staircases, and landscaping.) 

These are easily moved from one location to another.  The ground where the home is parked may be owned by the owner of the mobile home or leased. 

To compare the cost of living between U.S. cities go to www.bankrate.com/brm/movecalc.asp.

Location is important with regard to the amenities.  How close is it to the shopping centers?  Which school district does the house fall into?  What is the reputation of those schools?  A new house in a desirable area may, in fact, fall into a school district that is not very reputable

The United States is the land of the car.  On the island of Manhattan a car can present problems.  It needs to be garaged and parking facilities are inadequate and expensive.  Many residents do not own cars, but use subways, the bus service, and taxis.  On the West Coast a car essential.  The public transportation facilities are often inadequate. 

Distance in terms of mileage is often irrelevant.  It is more common to state distance in terms of time it takes to travel the distance.  Time yourself in peak hour traffic conditions from your home to your place of work before buying or renting a home. 

There are certain states in the United States that require the seller to disclose defects and problems in the house that is being sold.  Consider using the services of a building expert in evaluating the condition of the home you intend buying.

There are different types of insurance.  Choose that which is most suitable for you and acceptable to the lender.  In California, many homeowners do not purchase earthquake insurance and prefer to take the risk rather than pay the high cost for that protection.  If you buy a condominium, the Homeowner’s Association fees will often cover the building insurance.  This will not include the insurance for the contents of your home. 

See the section on Insurance in EasywayUSA.  

LIFE INSURANCE POLICIES

Many companies will offer you life insurance policies that will pay off the balance owing on your mortgage in the event of your death.  This is not a requirement by the lender for providing the loan, and if you have other adequate insurance you should ignore such insurance offers.

As a homeowner you will be required to pay property taxes.  Different states have different laws relating to how your property will be valued and how often such valuation may be increased.  Check out your tax obligation before you purchase your home. 

You may live in a city, which has moderate temperatures, but your utility bill for gas and heating may be as much as that of a heavy user in a cold or hot region.  The price of water will also vary in different cities. 

There are many laws in the United States that protect people from discrimination in purchasing a home or borrowing money.  These include discrimination based on race, sex, and national origin. 

CALCULATORS

For a useful tool in calculating various financial aspects of buying a house (what can you afford, what loans are available), visit www.realtor.com