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1

There are several good answers which have concentrated on the 'debt' and/or 'rent' part of the question. For something different and hopefully also helpful, I'm going to concentrate on the 'financial assessment' part, which almost everyone has ignored. You should consider who is performing the financial assessment, and why. Pending any further ...


4

Debt is money owed to another for goods or services (or money) rendered. For example, if you took $5 worth of product from a store (other legal consequences aside), you would be in debt to that store for $5 of product taken. Rent is typically paid in advance for use of the premise for the upcoming month, or other unit of time specified in your lease ...


4

This question of the financial assessment test is asking for your monthly repayment rate for any annuity loans you have. An annuity loan is when you receive either a sum of money or goods/services worth a certain amount of money and then pay that money back over time through a monthly installment plan. The questionaire is asking you for the monthly ...


79

Rent is not a debt because you have not borrowed any money from the landlord. Your current month's rent is a (very) short term liability, as are other payments for services rendered (like utility bills and maid service). Future rent obligated by a lease agreement can also be considered a liability, or you can consider the cost of breaking the lease to be a ...


23

The answer is a certain 'no'. There was a question along the lines of "How can one always be debt-free, given that we get monthly bills?" In that case, we make the distinction between an accumulated debt and regular bills. I'd prefer not to argue word definitions, per se, or semantics. For purposes of such exercises, your highlighted quote helps make the ...


2

SDLT applies to most residential property sales, with some variations and exemptions. There is no exemption to SDLT for living in the property for a certain period of time (you might be confusing this with capital gains tax, where a practice known as flipping was used prior to selling in order to avoid it). If you already own a home and it wasn't sold ...


1

I have factored some property appreciation into your figures. After 25 years plan A and B have comparable cost: $229.8k vs $309.5k. If you are happy renting and saving for 5 years you might avoid some house repair costs with plan B. On the other hand it might be more comfortable in a $300k house. 2% property appreciation might be optimistic though. Plan ...


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