Photo AI
‘The average rent in Ireland is at an all-time high and the availability of houses to rent is at its lowest ever level.’ (www.dft.ie 2019) (i) Discuss the comparative costs for a young couple of buying versus renting a house - Leaving Cert Home Economics - Question 1(b) - 2020
Question 1(b)
‘The average rent in Ireland is at an all-time high and the availability of houses to rent is at its lowest ever level.’ (www.dft.ie 2019) (i) Discuss the comparati... show full transcript
Worked Solution & Example Answer:‘The average rent in Ireland is at an all-time high and the availability of houses to rent is at its lowest ever level.’ (www.dft.ie 2019) (i) Discuss the comparative costs for a young couple of buying versus renting a house - Leaving Cert Home Economics - Question 1(b) - 2020
Step 1
Discuss the comparative costs for a young couple of buying versus renting a house.
Answer
When comparing the costs of buying versus renting a house, several factors come into play that affect the financial implications for a young couple.
Buying Costs
-
Initial Costs: These can include a deposit typically ranging from 10% on properties up to €220,000 or 20% on those exceeding this amount. Additional costs may include legal fees, lender's fees, surveyor fees, and insurance fees.
-
Ongoing Costs: These continuous expenses can comprise mortgage repayments, property taxes, home insurance, and maintenance costs. Moreover, if the mortgage is based on a variable interest rate, fluctuations can affect monthly payments.
Renting Costs
-
Initial Costs: Renters typically need to pay a deposit, which often amounts to one month’s rent, along with any upfront rental fees. This initial expense can be lower than buying.
-
Ongoing Costs: Continuous payments include monthly rent, which can vary significantly based on market conditions. Additional costs, such as utility bills and property management fees, may also arise.
Comparative Analysis
- Flexibility: Renting often allows for greater flexibility, as it does not tie a couple to a long-term financial commitment compared to buying.
- Investment Consideration: Buying a house is often perceived as an investment that will appreciate over time, versus rent, which does not build equity.
Overall, for a young couple, the choice between buying and renting will depend on their financial situation, long-term goals, and current market conditions.
Step 2
Name and give details of one housing scheme offered by Local Authorities.
Answer
One notable housing scheme offered by Local Authorities is the Housing Assistance Payment (HAP). This scheme is geared towards assisting individuals seeking long-term housing solutions who meet certain eligibility criteria.
Key Features of HAP
- Eligibility: It is available to first-time buyers and individuals on social housing support, facilitating their access to private rental markets.
- Financial Support: Under this scheme, the local authority covers the agreed rental amount up to the approved limit, which is especially beneficial for low-income households.
- Rising Income Limits: The income limit for qualifying households can be assessed, allowing individuals to retain entitlement even as their income increases, provided they prove their financial capability.
- Lifetime Benefit: HAP can assist beneficiaries throughout their housing journey, ensuring long-term stability as they transition toward ownership.
Overall, this scheme serves as a pivotal means of support for young couples navigating the rental market in Ireland.