BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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if you want to benefit from increase in property value
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if you want to stay in the house for a few months
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if you want to save on upfront costs
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Detailed explanation-1: -No landlord issues: You don’t have to suffer the landlord’s whims when it comes to maintaining the house or argue over who will pay for repairs, painting and other maintenance jobs. Emotional security: Having one’s own house provides peace and mental stability and the freedom to keep it as per one’s wish.
Detailed explanation-2: -Advantages of owning a home over rental accommodations: # It gives a sense of security and pride of home ownership. # Rent is an expense that is incurred every month without creating any physical asset.
Detailed explanation-3: -More expensive: Buying a house is more costly than renting. besides the upfront cost of purchase, you have to pay charges for maintenance, property tax, renovation and repairs. Illiquid asset: Real estate has much lower liquidity, which means that if you need the money, you cannot sell a house immediately.
Detailed explanation-4: -In conclusion The opportunity cost of buying a home is much higher than renting one. However, if you are at a stage where you are stable in life and with your finances, this can be the correct next step for you. Ensure that you consider all costs and choose a home that fulfils all your supplementary needs.