Ella: The house on Elm Street is a smart investment and we should buy it immediately. The real estate market is volatile, and since current prices are relatively low, we should take advantage of the owner’s financial trouble and make a low offer today.
Cindy: We should rent a house while we save enough money for a big down payment. If we don’t put enough money down, our mortgage payments will be too high.
Which of the following, if true, would offer the most support for Ella’s argument in light of Cindy’s criticism?
A big down payment does not protect against rising interest rates.
The risk of making an immediate offer is small if current prices are relatively low.
Some investors in volatile real estate markets have made enormous profits by timing wisely the resale of their investments.
Investing in real estate when prices are low outweighs any advantage gained by having a comparatively low mortgage payment.
If the owner’s financial trouble caused the price of the house to drop below market value, the investment would almost certainly bring a profit.
Cindy: We should rent a house while we save enough money for a big down payment. If we don’t put enough money down, our mortgage payments will be too high.
Which of the following, if true, would offer the most support for Ella’s argument in light of Cindy’s criticism?
A big down payment does not protect against rising interest rates.
The risk of making an immediate offer is small if current prices are relatively low.
Some investors in volatile real estate markets have made enormous profits by timing wisely the resale of their investments.
Investing in real estate when prices are low outweighs any advantage gained by having a comparatively low mortgage payment.
If the owner’s financial trouble caused the price of the house to drop below market value, the investment would almost certainly bring a profit.
Was feeling a little foggy in head earlier, re-read the argument..it's D
