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general financial literacy 4501 group the following responsibilities an…

Question

general financial literacy
4501
group the following responsibilities and benefits of owning versus renting a home. (drag-and-drop your answer to the appropriate group/category.)
owning
renting
short - term commitment major repairs greater stability property taxes greater mobility regularly renew contract more fluctuation of monthly payment
gain from investment

Explanation:

To solve this, we analyze the characteristics of owning and renting a home:

Owning:
  • Major repairs: Homeowners are responsible for major repairs.
  • Greater stability: Owning a home provides long - term stability as there's no landlord - imposed move - out.
  • Property taxes: Homeowners have to pay property taxes.
  • Gain from investment: If the property value increases, homeowners can gain from the investment.
  • More fluctuation of monthly payment: For example, mortgage payments can be affected by interest rate changes, and property taxes/insurance may vary, leading to more fluctuation in monthly costs related to the home.
Renting:
  • Short - term commitment: Renting usually involves shorter - term leases (e.g., 1 - year leases), so it's a short - term commitment.
  • Greater mobility: Renters can move more easily once their lease is up, giving them greater mobility.
  • Regularly renew contract: Renters often have to regularly renew their rental contracts (e.g., yearly).

Answer:

Owning:

  • Major repairs
  • Greater stability
  • Property taxes
  • Gain from investment
  • More fluctuation of monthly payment

Renting:

  • Short - term commitment
  • Greater mobility
  • Regularly renew contract