Renting vs Buying

What analogy does the reading use to compare term and whole life insurance?

• Renting (term) vs. buying (whole)

• Short-term loans (term) vs. long-term loans (whole)

• Leasing a car (term) vs. owning a car (whole)

• Temporary jobs (term) vs. permanent jobs (whole)

What is a common financial advantage of renting a home compared to buying?

• Lower upfront costs

• Building equity

• Property appreciation

• Tax benefits

Which of the following is a potential disadvantage of buying a home?

• Lack of stability

• No tax benefits

• High maintenance costs

• Limited customization

In terms of mobility, what is a benefit of renting over buying?

• Easier to relocate

• Higher resale value

• More tax deductions

• Increased property value

What is a typical long-term benefit of buying a home?

• Building equity

• Lower monthly payments

• No maintenance responsibilities

• Flexibility to move

Which of the following is a common reason people choose to rent rather than buy?

• Desire for stability

• Lower initial costs

• Investment potential

• Pride of ownership

What is a potential risk of buying a home?

• Rent increases

• Property depreciation

• Lack of flexibility

• No equity building

Which of the following is often a benefit of renting a home?

• No property taxes

• Building equity

• Appreciation of property

• Tax deductions

What is a common misconception about renting?

• It is always cheaper than buying

• It offers more stability

• It builds equity

• It provides tax benefits

Which of the following is a financial benefit of buying a home?

• Tax deductions

• No maintenance costs

• Lower insurance costs

• No property taxes