Rent or Buy 1
John and Linda have been arguing about whether to buy a house for a long time.
They have been renting a small flat for several years, and the rent keeps going up.
Last year, John wasn’t sure about his job situation, so they agreed to delay the decision.
They also invested some money in the stock market, and their investments are doing well.
Linda really wants to have a place of her own.
She is growing impatient and doesn’t want to wait any longer.
She wants to sell some of their investments and put the money into a nice house.
Questions:
1. Why didn't they decide to buy a house last year?
>> John was uncertain about his job.
2. Where do they invest some money last year?
>> They put some money in the stock market.
Put the sentences below in order:
(1) They have been renting a small flat for several years, and the rent keeps going up.
(2) They also invested some money in the stock market, and their investments are doing well.
(3) Last year, John wasn’t sure about his job situation, so they agreed to delay the decision.
(4) John and Linda have been arguing about whether to buy a house for a long time.
Correct Order: (4) (1) (3) (2)
John is against buying now because he thinks prices are too high.
He is also worried about the high cost of living in the area.
This is beginning to make the area less attractive to companies.
Unless a company is innovative and successful, it can’t afford to do business in the area.
Salary levels have risen so quickly that companies can no longer afford to attract good workers.
Good workers won’t come unless they are paid enough to buy a house.
So many companies are relocating or moving overseas where costs are lower.
Question:
— Why are many companies relocating or moving overseas?
— They can't afford to stay because of the high cost of living.
Fill in the blanks:
Salary levels have risen so quickly that companies can no longer afford to attract good workers. Good workers won’t come unless they are paid enough to buy a house.
Repeat Sentences:
1. Linda really wants to have a place of her own.
2. They invested some money in the stock market.
3. Unless a company is innovative and successful, it can’t afford to do business in the area.
John is worried that once companies start to leave, housing prices will come down.
Only fools are buying now, paying prices that are probably 10 to 20 percent higher than they should be.
He wants to buy when prices have fallen to a more reasonable level.
Until then, it doesn’t make sense to buy.
Questions:
1. What does John think it will happen to housing prices?
>> He thinks they'll come down.
2. Why does he think that housing prices will come down?
>> He thinks that companies will move out of the area, causing prices to weaken.
He remembers what happened in other countries, just a few years ago, when prices climbed and then fell 50%.
Many people lost their homes because they owed more on their homes than the homes were worth.
When they lost their jobs, they couldn’t pay the mortgage.
They couldn’t sell either, because the selling price was less than what they owed to the bank.
So they had to move out and the banks took possession.
Now prices are rising again, so the same thing could happen again.
A cycle of boom and bust, which people tend to forget.
Exercises:
1. When people buy a house or a flat, why do they go to a bank?
>> Unless they can pay cash, they'll need to get a loan from a bank to help pay for it.
2. A cycle of boom and bust when an economy grows too fast, then takes a rapid fall, and the cycle begins again.
Linda has a different view.
She thinks he worries too much.
She thinks if they buy now, prices will continue to rise.
If they don’t buy now, they will miss the opportunity and regret it later.
She isn’t worried by the possibility that prices may drop in the future.
Question:
— What does Linda think about housing prices?
— They will continue to rise.
Repeat Sentences:
1. She isn't sure, but she thinks prices will continue to rise.
2. If they don’t buy now, they will miss the opportunity and regret it later.
3. She isn’t worried by the possibility that prices may drop in the future.
4. She thinks they will regret it later if they don't buy now.