Question

Several financial or economic factors are relevant to the rent-or-buy decision. From the following list, identify the financial or economic factors that should be considered when performing this analysis. Check all that apply.
a. The pride that comes from owning your own home
b. Current and expected future housing prices
c. Current and expected future housing-related tax deductions

Answer 1

Answer:

The financial and economic factors that should be considered when performing this analysis are:

b. Current and expected future housing prices

c. Current and expected future housing-related tax deductions

Explanation:

a) A rent-or-buy decision should be based on financial and economic factors.  There is the financial implication of making a down payment, closing costs, and maintenance expenses when one decides to own a home instead of renting an apartment.   However, for the occupant, renting provides the advantage of known monthly costs.  Some advantages of owning a house are building equity and tax benefits.  The pride that comes that comes from owning a home is not a financial and economic benefit.