Question

on your own piece of paper/notecard complete the questions and action activity
practice quiz 8 - 1

1. what are the main benefits and drawbacks of renting a place of residence?
2. which components of a lease are likely to be most negotiable?
3. for the following situations, would you recommend that the person rent or buy housing? (circle your answer:)

a. a person who desires to reduce income taxes paid rent buy
b. a person who expects to be transferred for work soon rent buy
c. a person with few assets for housing expenses rent buy
action activity: compare two comparable houses, one for rent and one to buy in your neighborhood. use pfp & 28, renting versus buying housing to complete your comparison. research the prevailing rates in your area for rents. be sure to compare similar size apartments, locations, and amenities. use pfp sheet 28, apartment rental comparison for your research.

Explanation:

1. Benefits of renting: Lower upfront costs, flexibility to move, less maintenance responsibility. Drawbacks: No equity building, rent may increase over time.
2. Negotiable lease components: Rent amount, lease - term length, security deposit amount, pet - related clauses.
3. a: Buying can offer tax deductions like mortgage interest and property tax deductions, so buy. b: Since the person may need to move soon, renting provides more flexibility, so rent. c: With few assets for housing expenses, renting requires less upfront capital, so rent.

Answer:

1. Benefits: Low upfront cost, flexibility, less maintenance. Drawbacks: No equity, rent hikes.
2. Rent amount, lease - term, security deposit, pet clauses.
3. a. buy

b. rent
c. rent