Property

Question 1

Benefits of home ownership

Answer 1

Potential profitable investment
Tax benefit as one of your houses is free from capital gains
Inflation hedge
Security of owning a home
Social status

Question 2

Factors affecting house prices

Answer 2

Supply and demand
Consumer confidence
Interest rates
State of economy

Question 3

Types of mortgages?

Answer 3

Fixed rate mortgage
Standard variable rate
Tracker mortgages
Offset mortgages

Question 4

What is help to buy Scotland?

Answer 4

For people who can’t buy without help
Government will buy % stake in the house for a certain amount of money
On new build homes of up to £250k

Question 5

What is a lifetime mortgage

Answer 5

For elderly who want to release equity
Lender loans interest free lump sum
Interest is paid back when house is sold
Can be expensive

Question 6

What is a home reversion plan

Answer 6

All or part of house is sold to investment company
Price agreed is usually 20% - 50% of the property’s value
Depends on health and age of homeowner

Question 7

What are the benefits of renting

Answer 7

Flexibility
Landlord pays or maintenance and repairs
Could be cheaper in the short run than buying due to transaction cost
Savings available for else where