Question

John would like to move from the city into the suburbs and has been saving up a large down payment for a home. Which is the most cost effective way for John to buy a house in the suburbs?
a.Move to the suburbs and rent a house for one year before purchasing a home.
B.Finish the term of his apartment lease in the city and find a new home to purchase simultaneously.
C.Break his lease and move to the suburbs immediately without identifying a home to buy.
D.Break his lease once he has bought the perfect home.

Answer 1

The option A is correct.

John would like to move from the city into the suburbs and has been saving up a large down payment for a home. The most cost effective way for john to buy a house in the suburbs is to move to the suburbs and rent a house for one year before purchasing a home.  

Further Explanation:

Buying a home:

Buying a home means to purchase a home by investing a huge amount of money. It also refers to owning. Owning means to get possession of something. For example, acquire the property, purchase a home, purchased machinery, and purchased equipment. Owning can lead to lower costs in the long term.  

Rent a home:

Rent a home means the tenant pays a fixed amount of money to the owner of the home. The rent has to be paid every month. The amount of rent can be varied according to the type of house, availability of home to the nearby park, hospital and any other basic amenities, the home would be park facing and sun-facing and many other factors should be considered for computing the amount of rent.  

Justification for the correct and incorrect answer:

A.

Move to the suburbs and rent a house for one year before purchasing a home: This option is correct.

This is the correct option to evaluate whether it is fruitful investment to purchase a house in suburbs or not. John stay in suburbs for one year to judge all the aspects.

B.

Finish the term of his apartment leases in the city and find a new home to purchase simultaneously: This option is incorrect.

If the term of the apartment leases finish and the john is not able to find a new house to purchase till the apartment leases finish. John does not have any house to live.  

C.

Break his leases and move to the suburbs immediately without identifying a home to buy: This option is incorrect.

If the john breaks his leases, the john has to pay the extra amount of money. If the john move to the suburbs immediately without identifying a home, he does not have any home to buy.

D.

Break his lease once he has bought the perfect home:This option is incorrect.

It is not easy to buy the perfect home; it may happen the home got after the completion of lease period. This statement is incorrect.  

Learn more:

1. Learn more about renting

brainly.com/question/2288011

2. Learn more about owning

brainly.com/question/2731676

3. Learn more about owning vs. renting

brainly.com/question/2665554

Answer details:

Grade: Middle School

Subject: Accounting

Chapter: Owning vs. Renting  

Keywords:John, like to move, city, suburbs, saving up, large down payment, home, effective way, buy a house, rent a hiuse, one year, before purchasing a home, finish the term, apartment lease, in the city, identifying, break his leases.  

Answer 2

The most cost effective way for John to buy a house in the suburbs is:

a.Move to the suburbs and rent a house for one year before purchasing a home.

This is to test the waters. During this time, he has to acclimatize himself into living in a new environment. He has to discover the pros and cons of living in the suburbs compared to living in the city like travel time in going to work, etc.

If after a year, he finds its more beneficial to live in the suburbs, then he can buy a house there. On the other hand, if he finds it costly to live in the suburbs compared to living in the city, he simply has to pay the necessary rent and utility bills, pack up his bags, and go home.