Understanding Home Buying Decisions

Understanding Home Buying Decisions

Assessment

Interactive Video

Business, Life Skills

10th - 12th Grade

Medium

Created by

Jackson Turner

Used 9+ times

FREE Resource

The video provides a framework for deciding whether to rent or buy a home. It emphasizes that there is no one-size-fits-all answer, as the decision depends on personal circumstances, economic conditions, and housing market dynamics. The video compares the costs of renting and buying, including mortgage interest, property taxes, and upkeep. It also considers the potential investment returns from money not used for a down payment. Intangible factors like stability, flexibility, and customization are discussed, highlighting that the decision is context-dependent.

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10 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main takeaway from the introduction regarding the rent vs buy decision?

Renting is always better than buying.

There is no simple right answer; it depends on personal and economic factors.

The decision should be based solely on emotional reasons.

Buying is always better than renting.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is NOT a cost associated with buying a home?

Mortgage interest

Property tax

Upkeep costs

Rental deposit

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does an interest-only loan simplify the analysis of buying a home?

It allows for a lower down payment.

It eliminates the need to pay any interest.

It requires only the interest to be paid, simplifying calculations.

It increases the property tax.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What financial benefit might you have if you invest your down payment instead of using it to buy a house?

Reduced rental costs

Investment income

Higher property taxes

Increased mortgage interest

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a psychological benefit of paying a mortgage?

It reduces property taxes.

It forces savings.

It increases rental income.

It eliminates upkeep costs.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is an intangible benefit of buying a home?

Flexibility to move easily

Stability in living situation

No need for a down payment

Lower initial costs

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might renting be a better option in a rapidly appreciating rental market?

You can customize the rental property.

Rents are fixed and predictable.

You have to pay property taxes.

Rents could increase significantly.

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