Real Estate Quiz

What is an advantage of renting?

• It can be less costly than buying

• It requires a large down payment

• It offers no flexibility in moving

• It has high maintenance costs

What is one big drawback to renting?

• Inflation

• High initial costs

• Long-term commitment

• High maintenance costs

What are some typical transaction costs when buying real estate?

• Inspection Fees

• Advertising Costs

• Marketing Fees

• Renovation Costs

How does having consumer debt affect your ability to purchase real estate?

• It impacts the amount of interest you will pay

• It reduces the property value

• It increases the down payment required

• It eliminates the need for insurance

How much should you put down on a real estate purchase?

• A minimum of 20 percent of the purchase price

• 5 percent of the purchase price

• 50 percent of the purchase price

• No down payment is needed

What are the two ways that you can make money on a real estate investment?

• Appreciation and rental Income

• Depreciation and Loss

• Rent and Maintenance

• Taxes and Fees

How can you add value to your real estate investment?

• By fixing it up

• By ignoring it

• By selling it immediately

• By renting it out

Who should avoid real estate investing?

• People who are time-starved and anxious

• People who love real estate

• People who have a lot of free time

• People who are financially stable

Why should you think carefully before converting your home into a rental?

• You may not want the responsibilities of being a landlord

• It will always increase in value

• It requires no maintenance

• It is tax-free income

What are REITs?

• Real estate investment trusts that invest in different types of properties

• Real estate insurance taxes

• Residential estate income taxes

• Real estate interest transactions