Investing in real estate would be a profitable venture at : GMAT Critical Reasoning (CR)
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 19 Jan 2017, 03:32

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Investing in real estate would be a profitable venture at

Author Message
TAGS:

### Hide Tags

Director
Joined: 24 Aug 2007
Posts: 954
WE 1: 3.5 yrs IT
WE 2: 2.5 yrs Retail chain
Followers: 76

Kudos [?]: 1270 [0], given: 40

Investing in real estate would be a profitable venture at [#permalink]

### Show Tags

05 May 2010, 22:56
00:00

Difficulty:

(N/A)

Question Stats:

76% (02:13) correct 24% (01:00) wrong based on 50 sessions

### HideShow timer Statistics

Investing in real estate would be a profitable venture at this time. A survey in House magazine revealed that 85% of the magazine’s readers are planning to buy a second home over the next few years. A study of the real estate industry, however, revealed that the current supply of homes could only provide for 65% of that demand each year.

Which of the following, if true, would undermine the validity of the investment advice in the paragraph above?
(A) Some home owners are satisfied with only one home.
(B) About half of the people who buy homes are investing in their first home.
(C) About half of the people who buy homes have to take out a mortgage to do so.
(D) Only a quarter of the homes that are built are sold within the first two weeks.
(E) Only a quarter of those who claim that they want a second home actually end up purchasing one.
_________________

Tricky Quant problems: http://gmatclub.com/forum/50-tricky-questions-92834.html
Important Grammer Fundamentals: http://gmatclub.com/forum/key-fundamentals-of-grammer-our-crucial-learnings-on-sc-93659.html

If you have any questions
New!
Manager
Joined: 19 Feb 2009
Posts: 76
Location: chennai
Followers: 3

Kudos [?]: 37 [1] , given: 0

Re: Real estate investment would be a profitable venture [#permalink]

### Show Tags

06 May 2010, 03:37
1
KUDOS
Investing in real estate would be a profitable venture at this time. A survey in House magazine revealed that 85% of the magazine’s readers are planning to buy a second home over the next few years. A study of the real estate industry, however, revealed that the current supply of homes could only provide for 65% of that demand each year.

Which of the following, if true, would undermine the validity of the investment advice in the paragraph above?
(A) Some home owners are satisfied with only one home.
(B) About half of the people who buy homes are investing in their first home.
(C) About half of the people who buy homes have to take out a mortgage to do so.
(D) Only a quarter of the homes that are built are sold within the first two weeks.
(E) Only a quarter of those who claim that they want a second home actually end up purchasing one.

Conclusion:
Investment in real estate is profitable.

Premise : 85% of magazine readers planned to buy second house. ( Current Demand )
Counter Premise : Current supply of House could satiesfy 65% of the demand.

We need to tell that investment advice is not profitable.

(A) Some home owners are satisfied with only one home. ( we dont know the number )

(B) About half of the people who buy homes are investing in their first home.---Wrong Answer--- ( Any how people are purchasing house)

(C) About half of the people who buy homes have to take out a mortgage to do so. ---Wrong Answer---( Out of scope - we don't care about how they purchase home

(D) Only a quarter of the homes that are built are sold within the first two weeks. ( no need )

(E) Only a quarter of those who claim that they want a second home actually end up purchasing one.---Wrong Answer--( e.x Magazine readers - 100 nos, 85 - second home buyers , quarter of them end up with first home (i.e) 63 of people need to buy the second house which is equal to 63% . So demand is equal to supply. So it is not profitable to invest in second house. )

Manager
Joined: 19 Feb 2009
Posts: 76
Location: chennai
Followers: 3

Kudos [?]: 37 [0], given: 0

Re: Real estate investment would be a profitable venture [#permalink]

### Show Tags

06 May 2010, 05:35
thanks..
SVP
Joined: 17 Feb 2010
Posts: 1558
Followers: 19

Kudos [?]: 576 [0], given: 6

Re: Real estate investment would be a profitable venture [#permalink]

### Show Tags

06 May 2010, 09:54
it is (E).
Intern
Joined: 13 Oct 2010
Posts: 25
Followers: 1

Kudos [?]: 8 [0], given: 3

Re: Real estate investment would be a profitable venture [#permalink]

### Show Tags

20 Oct 2010, 23:13
This is easy. E is the answer.
Retired Moderator
Status: 2000 posts! I don't know whether I should feel great or sad about it! LOL
Joined: 04 Oct 2009
Posts: 1712
Location: Peru
Schools: Harvard, Stanford, Wharton, MIT & HKS (Government)
WE 1: Economic research
WE 2: Banking
WE 3: Government: Foreign Trade and SMEs
Followers: 97

Kudos [?]: 910 [0], given: 109

Re: Real estate investment would be a profitable venture [#permalink]

### Show Tags

26 Oct 2010, 13:03
+1 E
_________________

"Life’s battle doesn’t always go to stronger or faster men; but sooner or later the man who wins is the one who thinks he can."

My Integrated Reasoning Logbook / Diary: http://gmatclub.com/forum/my-ir-logbook-diary-133264.html

GMAT Club Premium Membership - big benefits and savings

Senior Manager
Joined: 23 May 2010
Posts: 441
Followers: 5

Kudos [?]: 103 [0], given: 112

Re: Real estate investment would be a profitable venture [#permalink]

### Show Tags

26 Oct 2010, 18:52
+1 E
Intern
Joined: 21 Dec 2011
Posts: 1
Followers: 0

Kudos [?]: 0 [0], given: 0

Re: Investing in real estate would be a profitable venture at [#permalink]

### Show Tags

21 Sep 2012, 19:41
However, the right answer is D
Can you explain why E is wrong?
Manager
Joined: 22 Jun 2016
Posts: 60
Followers: 0

Kudos [?]: 1 [0], given: 4

Re: Investing in real estate would be a profitable venture at [#permalink]

### Show Tags

12 Sep 2016, 14:18
thutrang90 wrote:
However, the right answer is D
Can you explain why E is wrong?

May I please know the source of question, D can never be the answer. If the houses are not sold in first 2 weeks,it will be sold later and still will be beneficial to invest in real estate business.
Re: Investing in real estate would be a profitable venture at   [#permalink] 12 Sep 2016, 14:18
Similar topics Replies Last post
Similar
Topics:
Investing in real estate would be a profitable venture at 6 27 Apr 2009, 02:31
Investing in real estate would be a profitable venture at 3 08 Feb 2008, 05:22
Investing in real estate would be a profitable venture at 3 30 Jun 2007, 07:06
Investing in real estate would be a profitable venture at 4 29 Jun 2007, 09:20
Investing in real estate would be a profitable venture at 2 16 Mar 2007, 15:17
Display posts from previous: Sort by