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Exercise: Finance & Money: Juan: Peter

Peter owns his house that he purchased 5 years ago for £450,000. Juan rents his home for £900 per month but wants to buy a property. Peter warns Juan about the costs of purchasing a home, including paying a solicitor £4,300 in fees to handle the legal documents. Similar homes in Peter's neighborhood are now selling for £360,000-£370,000, so he would lose about £80,000 if he sold. However, on a previous property Peter purchased for £92,000 and sold 8 years later for £230,000, making a £138,000 profit.

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76 views3 pages

Exercise: Finance & Money: Juan: Peter

Peter owns his house that he purchased 5 years ago for £450,000. Juan rents his home for £900 per month but wants to buy a property. Peter warns Juan about the costs of purchasing a home, including paying a solicitor £4,300 in fees to handle the legal documents. Similar homes in Peter's neighborhood are now selling for £360,000-£370,000, so he would lose about £80,000 if he sold. However, on a previous property Peter purchased for £92,000 and sold 8 years later for £230,000, making a £138,000 profit.

Uploaded by

emanuel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Exercise: Finance & money

In the following conversation between two work colleagues (Peter and Juan), Peter
explains to Juan how he uses and manages his money in his private/personal life.

From the context, try to guess what the meaning of the words/phrases in bold are.
Then do the quiz at the end to check if you are right.

Juan:'Peter, do you own your house?'

Peter:'Yes, I do. It's mine. I purchased it 5 years ago. And you? Do you own your
house?'

Juan:'No, I don't. I rent mine.'

Peter:'If you don't mind me asking, how much money do you pay in rent each
month?'

Juan:'I pay £900 each month to the owner of the property. But I want to buy
a property, you know a house or an apartment.'

Peter:'I understand. But you should be careful. When I bought my house,


it cost me £450,000. But because of the crisis in the economy, its value has
decreased a lot. So, if I tried to sell it now, I would get a lot less. But at the
moment, nobody wants to buy property. Plus, when I bought the house I had to pay
for a solicitor (which is a type of lawyer) to organise the legal documents. And
solicitors charge a lot of money for doing this service. My solicitor charged me
£4,300.'

Juan:'So, what is your house worth now? How much money could you sell it for?'

Peter:'A similar house in my street was sold for £360,000 last month. So I
suppose it's now worth between £360,000 to £370,000. So, if I could sell it I
would make a loss of about £80,000. But to be honest, I think when I bought the
house, I overpaid. 5 years ago, my house wasn't worth £450,000. I should have
paid £420,000 for it at most.'

Juan:'My god! You have lost a lot of money.'

Peter:'Yes, I have. But the property I had before my current house, I made a
profit when I sold it, a very big profit. When I bought it, I paid £92,000 When I sold
it 8 years later, it was worth £230,000. So, I made a profit of £138,000.'
Quiz

Below is a definition/description of each of the words in bold from the above text.


Now choose the word/phrase from the question's selection box which you believe
answers each question. Only use one word/phrase once

1.Rent 2. Own 3. make a lost 4. Overpaid 5. Pay 6. Property 7. Cost 8.


Worth 9. Value 10. sell 11. Charge 12. purchased 13. Make a profit

1. A house, building or apartment, are all types of____

2. The opposite of the verb 'to buy', is _______

3. A verb that means to 'give' money to somebody to buy a product or service, is


________

4. An adjective which means the amount of money that you should get/obtain if you
sold something, is _________

5. A different way of saying 'buy', is ________

6. When you pay more money for something you have bought than you should, is
________

7. A noun which means the amount of money that you should get/obtain if you sold
something, is _________

8. When you sell something for less money than what you bought it for, you _____

9. A verb that means that something is yours/your possession, is ________

10. When you sell something for more money than what you bought it for, you
____

11. When you pay money to live in a house that another person owns, is________

12. A verb which means the 'quantity of money you have to pay' to buy or use an
object or service, is _________

13. A verb which means the 'quantity of money you have to pay' to use a service,
is_________

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