After a few days, read what your fellow students have posted. Reply to one or more of your classmates with a question or comment. Answer Key Exercises 1. Opportunity costs include lost interest on a down payment or security deposit and travel time to work when living in the suburbs or country. The advantages of owning a home are pride of ownership, financial benefits, and lifestyle flexibility.
Disadvantages are financial risks, limited mobility, and higher living costs.
The amount you can afford to pay for a house is affected by your income, the amount of down payment money available, current interest rates, and other debts. Since renting gives you more flexibility, renting may be used to meet housing needs at various stages of life, such as starting a career, moving to a new area, divorce, or death of a spouse. Location is the major factor of housing value and demand due to proximity to work, stores, quality schools, transportation, and other community services. When planning to sell your home, make needed repairs, consider new paint, clear out living and storage areas, and remove unnecessary furniture and other items.