What is an advantage of renting a place to live?
a) lower up-front costs
b) payments remain the same
c) low down payment
d) increasing equity over time

The answer is "A) lower up-front costs".

Upfront costs refers to the costs that you pay out of pocket when your offer on a home has been acknowledged. Upfront costs incorporate earnest money (regularly paid once you achieve shared acknowledgment with the vender), the inspection charge (paid amid investigation), and the appraisal expense (paid after review and on or before closing).  

Upfront costs are also defined as the costs that are charged toward the start of an agreement, task or business action.

The answer is "A) lower up-front costs".

Upfront costs refers to the costs that you pay out of pocket when your offer on a home has been acknowledged. Upfront costs incorporate earnest money (regularly paid once you achieve shared acknowledgment with the vender), the inspection charge (paid amid investigation), and the appraisal expense (paid after review and on or before closing).  

Upfront costs are also defined as the costs that are charged toward the start of an agreement, task or business action.

The option A is correct. The lower upfront cost is an advantage of renting a place to live.  

Further Explanation:

Renting means to pay the rent for a home to live. Owning means to purchase the home. In case renting, the person who pays the rent is considered as the tenants. The person who receives money is considered as the owner. The owner has the right to sell the property, the owner only gives the right to use to tenants.  

Justification for the correct and incorrect

A.

Lower upfront costs: This option is correct.  

Lower upfront cost means the cost before renting or owning the home. In the case of renting, this cost is very less but in the case of owning, this cost is very high. This is the advantage of renting a place.  

B.

Payment remains the same: This option is incorrect.  

This is not advantaged as the payment may vary according to the rent agreement. It does not remain the same for the whole period of life.  

C.

Low down payment: This option is incorrect.

This option is not correct, there is no need to pay down payment. A down payment is given in case of owning.  

D.

Increasing equity over time: This option is incorrect.

The property is owned by the owner only. The equity will not increase over time. this option is incorrect.  

Learn more:

1.Learn more about rental house agreement

2.Learn more about renting and owning

3.Learn more about depreciation expense

Answer details:

Grade: Middle School

Subject: Business

Chapter: Renting Vs owning

Keywords:

advantage, renting, a place to live, lower upfront costs, payment remains the same, Renting Vs owning, purchase, rent, low down payment, rental house agreement.  

The option A is correct. The lower upfront cost is an advantage of renting a place to live.  

Further Explanation:

Renting means to pay the rent for a home to live. Owning means to purchase the home. In case renting, the person who pays the rent is considered as the tenants. The person who receives money is considered as the owner. The owner has the right to sell the property, the owner only gives the right to use to tenants.  

Justification for the correct and incorrect

A.

Lower upfront costs: This option is correct.  

Lower upfront cost means the cost before renting or owning the home. In the case of renting, this cost is very less but in the case of owning, this cost is very high. This is the advantage of renting a place.  

B.

Payment remains the same: This option is incorrect.  

This is not advantaged as the payment may vary according to the rent agreement. It does not remain the same for the whole period of life.  

C.

Low down payment: This option is incorrect.

This option is not correct, there is no need to pay down payment. A down payment is given in case of owning.  

D.

Increasing equity over time: This option is incorrect.

The property is owned by the owner only. The equity will not increase over time. this option is incorrect.  

Learn more:

1.Learn more about rental house agreement

2.Learn more about renting and owning

3.Learn more about depreciation expense

Answer details:

Grade: Middle School

Subject: Business

Chapter: Renting Vs owning

Keywords:

advantage, renting, a place to live, lower upfront costs, payment remains the same, Renting Vs owning, purchase, rent, low down payment, rental house agreement.  

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