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'Buying a home is one of the most significant financial decisions you will make in your lifetime.' (a) Discuss the factors which influence individual and family housing choices - Leaving Cert Home Economics - Question 4 - 2012
Question 4
'Buying a home is one of the most significant financial decisions you will make in your lifetime.' (a) Discuss the factors which influence individual and family hou... show full transcript
Worked Solution & Example Answer:'Buying a home is one of the most significant financial decisions you will make in your lifetime.' (a) Discuss the factors which influence individual and family housing choices - Leaving Cert Home Economics - Question 4 - 2012
Step 1
Discuss the factors which influence individual and family housing choices: economic factors
Answer
Economic factors play a pivotal role in housing choices for individuals and families. These factors include:
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Cost of Housing: The overall cost of housing options, which can vary widely based on location, influences decision-making. Affordability is often a primary concern, prompting individuals to seek homes that fit their financial capabilities.
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Mortgage Availability: The accessibility of loans and interest rates can significantly affect housing choices. Lower interest rates usually encourage more individuals to consider purchasing homes.
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Employment and Income Levels: Job stability and the level of income directly impact the ability to purchase or rent a home. Economic growth often leads to an increase in housing demand.
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Local Economic Conditions: Factors such as unemployment rates and the local job market can either foster or hinder housing market activity.
Step 2
Discuss the factors which influence individual and family housing choices: national housing policy
Answer
National housing policy encompasses government strategies aimed at addressing housing needs. Key aspects include:
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Regulations and Standards: Policies regarding building codes, zoning laws, and sustainability practices can shape where and how homes are built.
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Subsidies and Grants: Government incentives for first-time buyers or low-income individuals can make home ownership more accessible.
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Affordable Housing Initiatives: National policies often aim to increase the availability of affordable housing units, a vital factor for low- and moderate-income families.
Step 3
Discuss the factors which influence individual and family housing choices: trends in housing developments
Answer
Trends in housing developments significantly affect individual and family choices. Considerations include:
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Urbanization: Increasing urban populations lead to higher demand for housing in cities, affecting both pricing and availability.
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Sustainable Housing: A growing emphasis on environmentally friendly construction methods impacts consumer preferences, with many seeking energy-efficient homes.
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Community Amenities: Developments that include community features like parks, schools, and public transport tend to be more attractive.
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Technological Advances: Features such as smart home technology can influence buyer decisions, making modern homes more desirable.
Step 4
Name and describe one type of mortgage available to potential house buyers.
Answer
One prevalent type of mortgage is the Annuity Mortgage.
- An annuity mortgage allows the borrower to repay their mortgage through fixed monthly installments over a specified period. The payment structure typically comprises both principal and interest components. Initially, payments are composed primarily of interest, gradually shifting to cover more of the principal as the loan matures. This type of mortgage can also offer the flexibility of permitting early repayments.
Step 5
Name and give details of one Local Authority scheme available to people in need of housing.
Answer
One Local Authority scheme is the Tenant Purchase Scheme.
- This scheme allows tenants of local authorities to buy their homes after a certain period of renting, typically at a discounted price. Eligible tenants can purchase their home after renting for a specified time, making housing more accessible. The financial discount is usually based on the period of tenancy, providing significant savings that can assist in the ownership transition.