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5.1 Name THREE payments that most tenants have to make every month - NSC Consumer Studies - Question 5 - 2017 - Paper 1
Question 5
5.1 Name THREE payments that most tenants have to make every month. 5.2 Explain the term deed of sale. 5.3 State to whom applications for government housing subsid... show full transcript
Worked Solution & Example Answer:5.1 Name THREE payments that most tenants have to make every month - NSC Consumer Studies - Question 5 - 2017 - Paper 1
Step 1
Name THREE payments that most tenants have to make every month.
Answer
Most tenants typically make the following three payments each month:
- Rent - This is the primary payment made to the landlord for occupying the property.
- Utilities - This includes payments for electricity, water, and sewage services.
- Household Contents Insurance - Tenants might also pay for insurance to protect their personal belongings within the rented space.
Step 2
Explain the term deed of sale.
Answer
The term deed of sale refers to a legal document that formally signifies the agreement between the buyer and seller for the purchase of a property. It outlines the terms and conditions agreed upon by both parties, including the sale price and any contingencies, and must be signed to make the sale legally binding.
Step 3
Step 5
Give FOUR possible financial advantages of building a house.
Answer
Building a house can present several financial advantages:
- Customization - Homeowners can design the house according to their preferences, potentially increasing its value.
- Investment - A house often appreciates over time, making it a solid long-term investment.
- Control over Costs - Homeowners can manage their budget and avoid surprises during the renovation or construction process.
- Tax Benefits - Future owners might be eligible for various tax deductions related to mortgage interest and property taxes.
Step 6
Step 7
Explain the advantages of living in a sectional title complex.
Answer
Living in a sectional title complex offers several benefits:
- Ease of Management - There is typically a body corporate that handles administrative duties, allowing residents to save time and effort.
- Security - Many complexes provide enhanced security features, such as gated access and surveillance systems.
- Shared Resources - Residents can share communal facilities, which can be cost-effective and promote community living.
- Maintenance - The body corporate often takes care of regular maintenance and renovations for common areas.
Step 8
Explain why buying a home is a long-term financial commitment.
Answer
Buying a home is a long-term financial commitment because it often involves significant financial obligation that spans many years. Homeowners typically engage in long-term mortgages, which require consistent monthly payments. Furthermore, owning a home entails ongoing costs such as property taxes, insurance, and maintenance, all of which tie the homeowner to the property financially for an extended period.
Step 9