5.1 Unit owners must pay a monthly levy to the body corporate - NSC Consumer Studies - Question 5 - 2021 - Paper 1

Buying

• Become the owner of the property, providing long-term security.
• The value of the property may increase over time, leading to potential wealth accumulation.

Renting

• Less responsibility for maintenance and repairs, easing the financial burden on tenants.
• Flexibility to move without the complications linked to selling a property.

Stove A

Stove A utilizes both gas and electricity, whereas Stove B uses only gas. Electricity is often generated from non-renewable sources.

Stove B is more suitable because:

• It has lower operational costs as gas is cheaper than electricity.
• The whole stove uses gas, which provides direct heat and saves on time and efficiency.

The total cost can be calculated as follows:

1. Deposit: R395,00

2. Instalment Payment: R400,00 (for 24 months) provides a total of:

   $ext{Total Instalments} = 400 imes 24 = R9600$

3. Total Cost:

   $ext{Total Price} = R395 + R9600 = R9995,00$

1. Tenants could not have been evicted, meaning landlords may not receive rental income.
2. If tenants were unable to pay, landlords faced losses that could lead to financial strain.
3. Difficulties may have arisen in finding new tenants, further impacting cash flow.
4. An inability to supervise properties could lead to maintenance issues and further costs.