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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.
Answer
When considering housing choices, several factors come into play:
Socio-economic Factors
- Cost: The location of the household directly affects housing prices.
- Household Size: The number of occupants can dictate the type of housing (e.g., larger families may require bigger homes).
- Income Level: Higher income generally allows for a greater range of housing options.
- Employment Status: Stability in employment can influence the ability to secure a mortgage.
- Education and Health Needs: Proximity to good schools and healthcare influences decisions, especially for families.
Availability of Housing
- Private Housing Shortages: Certain regions may have a shortage of suitable affordable housing due to high demand.
- Rental Market Conditions: In some urban areas, increased demand for rental properties may push prices up further.
National Housing Policy
- Government Schemes: Initiatives aimed at promoting affordable housing can influence buyer behavior.
- Support for First-time Buyers: Programs designed to assist new homeowners may sway housing choices significantly.
Step 2
Outline the conditions that are required in order to qualify for mortgage approval.
Answer
To qualify for mortgage approval, candidates typically need to meet several key conditions:
- Borrowing Limit: Generally, the loan amount should not exceed certain thresholds (e.g., loan-value limit, 10% minimum deposit).
- Income Verification: Documentation that establishes income sources and assurance of financial stability is required.
- Credit History: A good credit score reflects previous payment history, which is crucial for approval.
- Property Assessment: The house must be inspected for condition and deemed suitable by a lending agency.
Step 3
Name and describe one type of mortgage available to house purchasers.
Answer
One common type of mortgage is the Annuity/Repayment Mortgage:
- Description: This type of mortgage requires the borrower to repay both the principal and the interest over the loan term.
- Key Features:
- Payments are typically fixed and include interest and a portion of the principal.
- As payments progress, the share of interest declines while the principal repayment increases.
- It provides a predictable payment schedule, making it easier for homeowners to manage their finances over time.