Renting vs. Buying a Home Quiz

What is one financial aspect you should consider before deciding to buy a home?

• The color of the walls

• Your income stability

• The number of bedrooms

• The style of the kitchen

If you plan to stay in a home for less than 3 years, what is a potential financial disadvantage of buying?

• You might not qualify for a mortgage

• You may face tax disadvantages

• You will have to pay higher rent

• You will have to repaint the house

What is the price-to-rent ratio used for?

• To determine the size of a home

• To compare the value of renting versus buying

• To calculate property taxes

• To estimate maintenance costs

Which of the following is a cost associated with homeownership that renters do not typically pay?

• Monthly rent

• Property taxes

• Utility bills

• Internet fees

Why might someone choose to rent instead of buy if the price-to-rent ratio is greater than 20?

• Renting is always cheaper

• Renting is more convenient

• Renting is financially favorable

• Renting offers more space

What is a potential benefit of owning a home if property values increase?

• Increased maintenance costs

• Building equity

• Higher insurance premiums

• More frequent relocations

Which of the following should you consider if your home's value does not rise over time?

• The color of your neighbor's house

• Your satisfaction with the home

• The number of windows in the house

• The type of flooring

What is one reason why someone might prefer buying a home over renting, despite financial considerations?

• To avoid paying property taxes

• To have more control over their living space

• To have a shorter commute

• To have a larger backyard

What is a key question to ask yourself when deciding whether to rent or buy?

• How many pets do I want?

• Am I ready for the responsibility of homeownership?

• What is my favorite color?

• How many friends do I have?

If you have a subpar credit score, what might be a challenge when trying to buy a home?

• Finding a real estate agent

• Qualifying for a favorable mortgage rate

• Choosing a neighborhood

• Deciding on a paint color