buying vs renting-housing

One of the advantages of renting is that you

• can build equity.

• can remodel or make decorative changes as wanted.

• have less responsibility for maintenance and upkeep.

• have an opportunity to make friends with your neighbors.

When making decisions about a place to live, you should

• determine what you want and figure out a way to pay for it.

• determine how much you can spend and stay within your budget.

• not worry about the cost because it is most important that you feel safe and happy with where you live.

• base your final choice on cost because you can learn to be happy living anywhere you can afford to live.

A lease specifies _______________________________ when renting a place to live.

• what you can and cannot do

• only the rights and responsibilities of the tenant

• only the rights and responsibilities of the landlord

• the rights and responsibilities of the tenant and landlord

A down payment is the

• part of the purchase price paid in cash up front.

• amount that a person must pay when renting an apartment.

• difference between how much a house is worth and how much is owed on it.

• loan to finance the purchase of real estate, usually with specified payment periods and interest rates.

Which of the following should be included in a lease before you sign?

• The amount of the rent and how it must be paid.

• If you have roommate, only one person’s name and signature.

• The hours that the office is open and how to contact the manager.

• The address of the apartment complex, but not the exact apartment number.

Janalee is graduating from college and moving out of the dorm. Her best friend found a job in Dallas and plans to move soon. Janalee is not sure whether to keep her job in Tulsa or move to Dallas with her friend. She needs a place to live until she decides. What do you recommend? Janalee should

• buy a house because she can sell it when she leaves and make some money on it.

• sign a one year lease on an apartment because it will give her time to decide what she wants to do.

• rent an apartment, either on a month-to-month lease or with a lease that she can cancel if relocating out of state.

• buy a house; she can always rent it out to someone else if she cannot sell it when she decides to move.

The purpose for a security deposit is to

• pay for the last month of rent on your lease.

• pay for all maintenance while you live in the apartment.

• allow the owner/landlord draw interest on your money while you live in the apartment.

• provide some protection for the landlord for damage you made to the apartment, cleaning fees, or other costs.

Which of the following statements is TRUE?

• Renting an apartment is a greater financial commitment than owning a house.

• Owning a house is a greater financial commitment than renting an apartment.

• There is little financial difference between owning a house and renting an apartment.

• Owning a house is for wealthy people and renting an apartment is for low income people.

Juan and Rebecca want to buy a house, but they have no idea what price range they can afford. What do you recommend to them?

• Get pre-qualified for a loan before starting their housing search.

• Read through the ads in the newspaper and see what sounds good.

• Get pre-approved for a mortgage before looking for a place to buy.

• Find a real estate agent who can tell them about the best neighborhoods.

“Buying a house is the most expensive purchase most people make.” Is this statement true or false?

• The statement is TRUE because buying a house is a major expenditure for most individuals and families.

• The statement is TRUE because most people spend at least 50 percent of their income on housing.

• The statement is FALSE because most people spend more on cars and clothing than on housing.

• The statement is FALSE because most people rent; only the wealthy can afford to buy a house.