首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
考研
"It is always better to buy a house; paying rent is like pouring money down the drain." For years, such advice has encouraged pe
"It is always better to buy a house; paying rent is like pouring money down the drain." For years, such advice has encouraged pe
admin
2009-04-27
83
问题
"It is always better to buy a house; paying rent is like pouring money down the drain." For years, such advice has encouraged people to borrow heavily to get on the property ladder as soon as possible. But is it still sound advice? House prices are currently at record levels in relation to rents in many parts of the world and it now often makes more financial sense—especially for first—time buyers—to rent instead.
Homebuyers tend to underestimate their costs. Once maintenance costs, insurance and property taxes are added to mortgage payments, total annual outgoings now easily exceed the cost of renting an equivalent property, even after taking account of tax breaks. Ah, but capital gains will more than make up for that, it is popularly argued. Over the past seven years, average house prices in America have risen by 65%, those in Britain, Spain, Australia and Ireland have more than doubled. But it is unrealistic to expect such gains to continue. Making the (optimistic) assumption that house prices instead rise in line with inflation, and including buying and selling costs, then over a period of seven years—the average time American owners stay in one house—our calculations show that you would generally be better off renting.
Be warned, if you make such a bold claim at a dinner party, you will immediately be set upon. Paying rent is throwing money away, it will be argued. Much better to spend the money on a mortgage, and by so doing build up equity. The snag is that the typical first-time buyer keeps a house for less than five years, and during that time most mortgage payments go on interest, not on repaying the loan. And if prices fall, it could wipe out your equity. In any case, a renter can accumulate wealth by putting the money saved each year from the lower cost of renting into shares. There have, historically, yielded a higher return than housing. Putting all your money into a house also breaks the basic rule of prudent investing: diversify. And yes, it is true that a mortgage leverages the gains on your initial deposit on a house, but it also amplifies your losses if house prices fall.
"I want to have a place to call home," is a popular retort. Renting provides less long-term security and you cannot paint all the walls orange if you want to. Home owner ship is an excellent personal goal, but it may not always make financial sense. The pride of "owning" your own home may quickly fade if you are saddled with a mortgage that costs much more than renting. Also, renting does have some advantages. Renters find it easier to move for job or family reasons.
"If I don’t buy now, I’ll never get on the property ladder" is a common cry from first-time buyers. If house prices continue to outpace wages, that is true. But it now looks unlikely. When prices get out of line with what first-timers can afford, as they are today, they always eventually fall in real terms. The myth that buying is always better than renting grew out of the high inflation era of the 1970s and 1980s. First-time buyers then al ways ended up better off than renters, because inflation eroded the real value of mortgages even while it pushed up rents. Mortgage-interest tax relief was also worth more when inflation, and hence nominal interest rates, was high. With inflation now tamed, home owner ship is far less attractive.
The divergence between rents and house prices is, of course, evidence of a housing bubble. Someday prices will fall relative to rents and wages. After they do, it will make sense to buy a home. Until they do, the smart money is on renting.
选项
A、to purchase,
B、to rent.
C、to pay.
D、to lend.
答案
B
解析
本题是一道词汇题,考查指示代词it的指代关系。在本句(首段尾句)中"it"是形式主语,指代本句结尾处的不定式"to rent"(本句实际主语)。在解题时应注意代词的指代关系并且关注句子中的语法结构。
转载请注明原文地址:https://kaotiyun.com/show/JHa4777K
0
考研英语一
相关试题推荐
Shortlybeforehediedoflymphoma,thegreatwriterandphysicianLewisThomas,whosebooksturnedscienceintoawayofapprec
Scienceanditspracticalapplicationsintheformoftechnology,orthe"science"oftheindustrialarts,asWebsterdefinesth
LatinoyouthsneedbettereducationforArizonatotakefulladvantageofthepossibilitiestheirexplodingpopulationoffers.A
Speakingtwolanguagesratherthanjustonehasobviouspracticalbenefitsinanincreasinglyglobalizedworld.Butinrecentye
IfIaskyouwhatconstitutes"bad"eating,thekindthatleadstoobesityandavarietyofconnecteddiseases,you’relikelyto
AnonymityisnotsomethingwhichwasinventedwiththeInternet.Anonymityandpseudonymityhasoccurredthroughouthistory.For
[A]Loveyourself[B]Don’tgiveup[C]Forgiveandforget[D]Thinkofthepresent[E]Don’tbemeantoyourself
[A]Thinkpositively[B]Dowhateveryouwant[C]Changeyourattitude[D]Say"No"toconformity[E]Followyourdr
Fordecadesthemarketforexpensiveheadphoneswasmainlylimitedtohi-fifans.But【C1】________theboxystereosysteminthec
随机试题
桑菊饮中宣降配伍以宣降肺气止咳的药物组合是
与冈崎片段的概念有关的是
药物的溶出速度主要表示方程是
患者,女,28岁。产后乳房胀痛,位于乳房外上方皮肤掀红,肿块形似鸡卵,压痛明显,按之中软,有波动感,伴壮热口渴。切开引流的部位及切口是()
胆道感染宜选用
关于货币的时间价值,下列表述正确的有()。
现在火车票实行实名制。单位要你对媒体进行宣传和解释,你怎么做?
"Ihavegreatconfidencethatbytheendofthedecadewe’llknowinvastdetailhowcancercellsarise,"saysmicrobiologistRo
首都为雅温得的非洲国家喀麦隆,其货币名称为()。
结合材料回答问题“点”的事实与“面”的真相有一个日本人,声称发现了水的奥秘,认为水能听能看,有喜怒哀乐,能感知人类感情:听了贝多芬《田园交响曲》,水结晶美丽工整;听到“混蛋”等不好词汇的水,就结成难看的、不规则的结晶。这不但有他实验证明,亦有所拍水晶体
最新回复
(
0
)