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Everyone needs a home: a secure, comfortable place in a pleasant and sustainable community; a place to rear a family if they so wish and to grow old in serenity - Leaving Cert Home Economics - Question 4 - 2017
Question 4
Everyone needs a home: a secure, comfortable place in a pleasant and sustainable community; a place to rear a family if they so wish and to grow old in serenity. (So... show full transcript
Worked Solution & Example Answer:Everyone needs a home: a secure, comfortable place in a pleasant and sustainable community; a place to rear a family if they so wish and to grow old in serenity - Leaving Cert Home Economics - Question 4 - 2017
Step 1
Analyse the factors that influence housing choices: socio-economic factors
Answer
Socio-economic factors significantly influence housing choices. Key aspects include:
- Cost and Location: The financial capabilities of individuals determine where they can afford to live, affecting choice between urban and rural settings.
- Household Composition: Size and age of the household, including dependencies like children or elderly members, influence the size and type of house required.
- Employment and Income Levels: Job security and income impact the affordability of housing options.
Step 2
Analyse the factors that influence housing choices: availability of housing
Answer
Availability of housing is crucial in decision-making. Highlights include:
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Private Housing Market: Some urban areas face housing shortages, leading to increased competition and higher prices.
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Rental Market Variability: Demand for rental properties can exceed supply, pushing rents higher; this affects choices for those unable to purchase homes.
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Development of Affordable Housing: Initiatives aimed at increasing the stock of affordable homes influence lower-income households' options.
Step 3
Analyse the factors that influence housing choices: national housing policy
Answer
National housing policy plays a pivotal role, comprising:
- Government Regulations: Policies that guide land use and zoning, impacting the availability of land for housing.
- Support Programs: Initiatives like grants and loans to aid first-time buyers and similar groups increase housing accessibility.
- Interventions in Market Failures: Government actions to correct market inefficiencies, such as promoting balanced housing availability across socio-economic strata.
Step 4
Outline the conditions that are required in order to qualify for mortgage approval.
Answer
To qualify for mortgage approval, several conditions must be satisfied:
- Borrowing Limit: There are strict criteria on income and property value; typically, the loan/value ratio cannot exceed 10% of the property's market value.
- Income Stability: A consistent income source to demonstrate ability to repay the loan is essential.
- Credit History: A good credit rating showing timely repayment of previous debts is crucial.
- Employment Proof: Applicants must provide evidence of stable employment, usually for a minimum period.
Step 5
Name and describe one type of mortgage available to house purchasers.
Answer
One common type of mortgage is the Annuity/Repayment Mortgage:
- Structure: Monthly payments consist of both interest and principal, gradually reducing the loan balance over time.
- Advantages: Fixed payments make budgeting easier, and the borrower builds equity in the property as they pay down the loan.
- Variable Conditions: Payments can vary with interest rates adjustments; this may influence overall cost depending on economic conditions.