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buying vs renting-housing

Total questions: 46

Worksheet time: 3hrs 3mins

Name
Class
Date
1.

One of the advantages of renting is that you

a)

can build equity.

b)

can remodel or make decorative changes as wanted.

c)

have less responsibility for maintenance and upkeep.

d)

have an opportunity to make friends with your neighbors.

2.

When making decisions about a place to live, you should

a)

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

b)

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

c)

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

d)

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

3.

A lease specifies _______________________________ when renting a place to live.

a)

what you can and cannot do

b)

only the rights and responsibilities of the tenant

c)

only the rights and responsibilities of the landlord

d)

the rights and responsibilities of the tenant and landlord

4.

A down payment is the

a)

part of the purchase price paid in cash up front.

b)

amount that a person must pay when renting an apartment.

c)

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

d)

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

5.

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

a)

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

b)

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

c)

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

d)

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

6.

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

a)

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

b)

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

c)

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

d)

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

7.

The purpose for a security deposit is to

a)

pay for the last month of rent on your lease.

b)

pay for all maintenance while you live in the apartment.

c)

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

d)

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

8.

Which of the following statements is TRUE?

a)

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

b)

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

c)

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

d)

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

9.

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?

a)

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

b)

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

c)

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

d)

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

10.

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

a)

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

b)

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

c)

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

d)

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

11.

When renting an place to live, utilities are

a)

always included in the monthly rent.

b)

always paid the tenant.

c)

paid either by the tenant or landlord.

d)

not required when renting.

12.
Which of the following is not a basic need? 
a)
Pool
b)
Roof
c)
Bathroom
d)
Kitchen
13.
Fee that covers the cost of any future damage the renter might cause to the unit. 
a)
Material Resources
b)
Renter's Insurance
c)
Security Deposit
d)
Interest
14.
People who desire a one of a kind home may choose to have this type of home designed. 
a)
Custom-Built Homes
b)
Stock Home Plans
c)
Development Homes 
d)
Homes Built on Spec
15.
A _____________ is one building that contains two separate living units. The units may be attached side by side. 
a)
Duplex
b)
Efficiency apartment
c)
High-Rise apartment
d)
Triplex
16.

One benefit to buying a house is being able to customize it whereas you may not have that flexibility in an apartment or rental.

a)

True

b)

False

17.

One benefit to renting is usually maintenance is not your responsibility

a)

True

b)

False

18.

The formal process where your landlord terminates your lease and asks you to vacate your apartment in a period of time decided by local laws and statutes.

a)

Eviction

b)

Deed

c)

Lease

d)

Principal

19.

The owner of your property, or an agent of the owner, who leases out the apartment.

a)

Tenant

b)

Renter

c)

Owner

d)

Landlord

20.

What is a disadvantage of renting a home.

a)

the money you pay isn't going towards owning the house

b)

renting is way more expensive than buying

c)

renting makes you look irresponsible

d)

when renting you are stuck in the home for a very long time

21.

Brianna is reading over the ___ for renting a house. The ___ reads that she must pay rent for 12 months. If Brianna moves in, she will be the ___. Fill in the blanks in the correct order.

a)

term, lease, lanlord

b)

lease, deposit, landlord

c)

lease, term, tenant

d)

term, lease, tenant

22.

Mercedes owns a house but she has moved out. To make extra money over the years she decides to ___ the house out. Emily moves in the house and pays $650 a month. After a couple months Emily has wild house parties and gets 3 dogs. Mercedes clearly stated in the ___, "no pets or wild parties." As the ___, Mercedes threatens to ___ Emily if she keeps ignoring these rules. Fill in the blanks.

a)

lend, lease, landlord, evict

b)

rent, lease, tenant, evict

c)

rent, term, landlord, exit

d)

rent, lease, landlord, evict

23.

An advantage of renting is that you do not have the costs associated with owning a home such as property taxes.

a)

True

b)

False

24.

1. A(n) _________________ is a loan to purchase a home or property.

a)

lease

b)

mortgage

c)

rental agreement

d)

insurance policy

25.

As a homeowner, you can lose your home, and your investment in it, if you do not make timely mortgage payments.

a)

True

b)

False

26.

A(n) _________________________is a legal document that protects you and the landlord by clearly stating the arrangement between the two of you for a property agreement.

a)

rental paperwork

b)

insurance policy

c)

mortgage

d)

lease

27.

A landlord is allowed to raise rent at any given time whenever he/she chooses without the consent of the renter.

a)

True

b)

False

28.

A(n) _________________is money you give to the landlord when you sign the lease. The lease must state what it will be used for, and whether or not it is given back to the renter when he or she moves out.

a)

mortgage

b)

security deposit

c)

interest payment

d)

down payment

29.

The fees associated with buying and settling, or finalizing the sale of a home are called _________________________.

a)

closing costs

b)

termination fees

c)

settlement costs

d)

inspection fees

30.

In most instances, the ____________ pays the closing costs.

a)

buyer

b)

selller

c)

attorney

d)

insurance company

31.

What is a mortgage?

a)

A loan borrowed to buy a house (if you don't pay the loan the bank takes your house)

b)

A loan borrowed with your house as collateral (if you don't pay the loan the bank takes your house)

c)

Both of these are true

32.

After moving out of their family home, how do most people pay for housing?

a)

Buy a home

b)

Rent a home

33.

Which of these is NOT a valid option for a property you can rent to live in?

a)

The ORHS Gym

b)

An apartment

c)

A condo

d)

A house

34.

What term is used to describe money paid to the owner of a home?

a)

Euros

b)

Rent

c)

Mortgage

d)

Interest Payments

35.

When paying rent to a landlord, is your money ever returned to you?

a)

Yes

b)

No

36.

When renting a home, what term refers to the owner of the home?

a)

Boss

b)

Coach

c)

Tenant

d)

Landlord

37.

Which of these is not a term for someone living in a rented space?

a)

Renter

b)

Tenant

c)

Homeowner

38.

Which type of setting would have the highest rent?

a)

Rural Area

b)

Suburb

c)

Urban/Downtown Area

39.

Which type of area would have the lowest rent?

a)

Urban

b)

Suburban

c)

Rural

40.

Which of these is a positive aspect of renting?

a)

Mobility

b)

Payments made are never seen again

c)

Gaining property

d)

Inability to remodel rooms

41.

Which of these is a negative aspect of renting?

a)

Mobiity

b)

Landlord responsible for maintenance

c)

Amenities

d)

No ownership over property

42.

How do most people purchase a home?

a)

In cash

b)

Through a lease

c)

With a down payment and a mortgage loan

d)

Building their own

43.

Which of the following would a landlord be responsible for?

a)

Cleaning your bathroom

b)

Fixing a leaky sink

c)

Doing laundry

d)

Adding art to the walls

44.

When renting, who is responsible for general maintenance issues?

a)

Renter

b)

Landlord

45.

In which situation would renting a home be better than purchasing a home?

a)

When you need the flexibility to move

b)

If you believe you will not move for ten yeats

c)

If you wish to remodel a space

d)

When you have enough for a 40% down payment

46.

What is a home loan called?

a)

Mortgage

b)

Personal Loan

c)

Car Loan

d)

Above Rent Payments