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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 for... 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
When potential buyers consider their housing choices, several socio-economic factors come into play:
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Purchase Cost: The overall cost of purchasing a home is a primary consideration. Factors such as market trends, location desirability, and property size influence the affordability for buyers.
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Location: Proximity to workplaces, schools, and healthcare facilities affects housing choices. Areas with better amenities tend to attract more buyers, improving property values.
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Amenities: Availability of local amenities, such as shopping centers, parks, and public transport, can make certain locations more appealing to potential buyers.
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BER Rating/Energy Efficiency: Homes rated highly for energy efficiency typically command higher market values and appeal more to buyers concerned about long-term utility costs.
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Age of Household Members: The age and specific needs of household members, such as children or elderly relatives, can greatly influence the type of property suitable for potential buyers.
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Personal Preferences: Personal lifestyle and housing preferences also impact decisions. Factors like storage, outdoor spaces, and facilities for working from home are increasingly significant in housing choices.
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Investment Potential: Buyers often consider the potential for property value appreciation over time, impacting their choice based on perceived future returns.
Step 2
Discuss the conditions that lending institutions require for potential buyers in order to qualify for a mortgage.
Answer
Lending institutions set several conditions for potential buyers seeking to qualify for a mortgage:
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Deposit Requirements: Typically, lenders require a deposit amounting to at least 10% of the purchase price, particularly for first-time buyers.
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Income Verification: Buyers must provide proof of income, often demonstrated through pay slips, tax returns, or employment letters. Income sources like bonuses or secondary jobs are usually assessed as well.
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Debt-to-Income Ratio: Lenders evaluate a buyer's existing debts in relation to their income. A lower ratio indicates to lenders a less risky loan candidate.
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Good Credit History: A solid credit history enhances a buyer's chances, showing lenders that they can manage borrowed funds responsibly.
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Loan-to-Value Ratio (LTV): Lenders calculate the LTV ratio, comparing the loan amount to the property value. A lower LTV indicates lower risk for lenders.
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Employment Stability: Proof of stable employment history, typically for a minimum of two years, assures lenders of steadiness in income.
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Other Financial Obligations: Lenders might review additional financial commitments that could affect the buyer's ability to repay the mortgage.
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
The Sale of Goods and Supply of Services Act (1980) provides crucial protections for consumers engaging electricians for home services:
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Legally Binding Contract: The Act enforces a legally binding agreement between the consumer and the electrician, ensuring expected service quality.
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Purpose: Services must be provided for intended purposes. If a job is not performed as requested, consumers have the right to seek redress.
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Adequate Skill and Care: Electricians are required to perform their work with a requisite level of skill and diligence, ensuring safety and quality.
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Completion and Certification: Services should be completed and appropriately certified, providing assurance to the consumer about the work's standards.
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Quality Materials: The Act mandates that any materials used during the service meeting required standards, offering peace of mind to consumers regarding safety and functionality.
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Right to Redress: Consumers have the right to seek remedies, including repairs or refunds, should the service fail to meet statutory requirements.