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The number of private rented dwellings almost doubled between 1991-2002 - Leaving Cert Home Economics - Question 1 (b) - 2005
Question 1 (b)
The number of private rented dwellings almost doubled between 1991-2002. (Census, 2002) (i) Give an account of the comparative costs of buying a place to live and r... show full transcript
Worked Solution & Example Answer:The number of private rented dwellings almost doubled between 1991-2002 - Leaving Cert Home Economics - Question 1 (b) - 2005
Step 1
Give an account of the comparative costs of buying a place to live and renting accommodation.
Answer
When comparing the costs of buying a place to live with those of renting accommodation, several factors must be considered:
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Deposit and Initial Costs:
- Buying: Typically requires a substantial deposit (e.g., 10-20% of the property value) plus additional upfront costs such as legal fees, surveys, and stamp duty.
- Renting: Usually requires a smaller security deposit (often equivalent to one month's rent) and first month’s rent.
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Ongoing Costs:
- Buying: Homeowners are responsible for mortgage repayments, property taxes, and maintenance costs. Budgeting for unexpected repairs is also wise.
- Renting: Renters generally face monthly rent payments, which may increase over time. Maintenance responsibilities often lie with the landlord, reducing the financial burden on tenants.
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Tax Relief and Incentives:
- Buying: Homeowners may benefit from tax relief on mortgage interest payments (though this varies by jurisdiction).
- Renting: Limited or no tax incentives are typically available for tenants, although some regions may offer relief schemes.
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Location:
- The costs can vary significantly based on location. Buying in high-demand areas is often out of reach for many, whereas renting might provide more flexible options.
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Security and Long-Term Investment:
- Buying: Represents a long-term investment that can appreciate over time. Homeownership can provide stability.
- Renting: Offers flexibility to relocate but lacks investment value, leading to ongoing rental cycles.
In conclusion, while buying a home can lead to long-term financial gains, it demands a significant initial investment and ongoing costs. Renting, although often perceived as less secure, provides liquidity and fewer responsibilities in maintenance.
Step 2
Comment on the adequacy of housing provision in Ireland to meet the variation in housing needs.
Answer
In commenting on the adequacy of housing provision in Ireland, it is essential to consider various categories of housing needs:
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Owner-Occupier Houses:
Despite an increasing number of owner-occupier homes, affordability remains a pressing issue. Many families find it challenging to enter the housing market due to high property prices and stringent lending policies. -
Student Accommodation: The demand for student housing continues to surge, particularly in urban centers and near universities. However, there has been inadequate development of purpose-built student accommodation, leading to high rental prices and overcrowded conditions.
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Rented Accommodation:
The private rental market has expanded, yet it faces issues such as rising rents and insufficient long-term leases. Many tenants are subjected to the volatility of rent increases, making it challenging to secure affordable housing over time. -
Local Authority Housing:
Local authorities grapple with providing sufficient social housing due to underinvestment and rising demand. Many vulnerable groups, including the elderly and low-income families, are often waiting for years to secure suitable accommodation. -
Specific Needs Groups:
Certain demographics, such as the homeless, disabled, and refugees, struggle to find suitable housing options due to systemic barriers and insufficient provisions tailored to their specific needs.
In summary, while there are various housing options available in Ireland, the current provision is inadequate to meet the varied and growing housing needs. Policies focused on increasing supply, affordability, and inclusivity must be implemented to ensure that all citizens have access to appropriate housing.