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'Homeownership is good for individuals, families and communities.' (Housing for All, 2021) (a) Analyse the socio-economic factors that determine housing choices for potential buyers - Leaving Cert Home Economics - Question 4 - 2022
Question 4
'Homeownership is good for individuals, families and communities.' (Housing for All, 2021) (a) Analyse the socio-economic factors that determine housing choices f... show full transcript
Worked Solution & Example Answer:'Homeownership is good for individuals, families and communities.' (Housing for All, 2021) (a) Analyse the socio-economic factors that determine housing choices for potential buyers - Leaving Cert Home Economics - Question 4 - 2022
Step 1
Analyse the socio-economic factors that determine housing choices for potential buyers.
Answer
Several socio-economic factors play a crucial role in determining housing choices for potential buyers.
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Income Level: Higher income levels generally expand the options available to potential buyers, allowing them to afford better locations and larger homes.
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Employment Stability: A stable job and employment history can influence a buyer's ability to secure financing and commit to a mortgage.
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Family Size and Needs: The size of the household and specific needs, such as proximity to schools for children or accessibility for elderly family members, significantly shape housing choices.
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Location Preferences: Factors such as the desirability of the neighborhood, amenities available (parks, shops), and safety ratings can make certain areas more attractive to buyers.
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Market Trends and Economic Conditions: The overall economic climate, including interest rates and housing market trends, will affect the affordability and attractiveness of home buying.
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Investment Potential: Buyers may consider the long-term value of properties, focusing on those that are likely to appreciate.
Step 2
Discuss the conditions that lending institutions require for potential buyers in order to qualify for a mortgage.
Answer
Lending institutions typically require various conditions from potential buyers to qualify for a mortgage. These include:
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Credit History: A good credit score is crucial, as it reflects the borrower’s creditworthiness and ability to repay the loan.
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Down Payment: Many lenders require a minimum deposit, usually around 10% of the purchase price, particularly for first-time buyers.
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Proof of Income: Buyers must submit proof of income, often through payslips or tax returns, to demonstrate their ability to meet repayment terms.
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Debt-to-Income Ratio: Lenders assess the ratio of the borrower’s monthly debt payments to their gross monthly income, ensuring it falls within an acceptable range.
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Employment Verification: A stable job, preferably with a consistent length of service in the current role, is viewed positively by lenders.
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Property Appraisal: An independent appraisal of the property is generally required to confirm its market value and ensure it meets the lender’s criteria.
Step 3
Explain how consumers are protected by the Sale of Goods and Supply of Services Act (1980) when availing of the services of an electrician in the home.
Answer
Consumers are protected under the Sale of Goods and Supply of Services Act (1980) in several key ways when hiring an electrician:
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Legally Binding Contract: The act implies a legally binding agreement between the consumer and the electrician, ensuring that services provided must meet the intended purpose.
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Quality of Service: The service must be provided by a registered skilled person, ensuring competency and compliance with safety regulations.
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Adequate Materials: Electricians are required to use quality materials in their work, which helps to safeguard consumers against future issues arising from subpar materials.
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Right to Redress: Should the services be inadequate or the materials used be unsatisfactory, consumers are entitled to seek redress, which may include repairs or compensation.