Finance Chapter 7

Which of the following is an advantage of renting?

Renters have fewer responsibilities for maintenance than homeowners

The opportunity to have another person take over rent payments and live in the rental unit is called (a)

Subletting

Which of the following is a disadvantage of renting?

Tenants cannot take tax deductions for mortgage interest and property taxes

Which of the following is NOT a benefit of home ownership?

Maintenance and costs of repairs and home improvements

Which of the following expenses is NOT usually incurred by a tenant?

Property taxes

What should a home buyer consider when evaluating a house?

All of these should be evaluated

Donald wanted to buy a house in the country, so he sought advice from his cousin Evan. Evan explained the advantages and disadvantages of home ownership; however, he had some information incorrect. Which of the following is incorrect?

An advantage is that the down payment required is less than the security deposit for a rental

Which of the following is a form of housing in which shareholders purchase stock to obtain the right to live in a unit of the building?

Cooperative housing

Frank and Diane want to buy a house. Which of the following do they need before they purchase a house?

Down Payment

Which of the following is NOT correct?

Traditional financial guidelines suggest that your home should cost about five times your annual income