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# Investing in real estate would be a profitable venture at

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Manager
Joined: 07 Jun 2007
Posts: 58

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

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

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29 Jun 2007, 10:20
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Difficulty:

(N/A)

Question Stats:

100% (01:11) correct 0% (00:00) wrong based on 1 sessions

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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.

9. 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.

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Manager
Joined: 12 Apr 2007
Posts: 166

Kudos [?]: 12 [0], given: 0

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29 Jun 2007, 11:34
E

If only a quarter of the 85% actually do purchase homes, then the supply far outstrips the demand, and it wouldnt be wise to invest in real estate.

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Senior Manager
Joined: 06 Jul 2004
Posts: 468

Kudos [?]: 136 [0], given: 0

Location: united states

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29 Jun 2007, 12:44
plaguerabbit wrote:
E

If only a quarter of the 85% actually do purchase homes, then the supply far outstrips the demand, and it wouldnt be wise to invest in real estate.

i'm not sure what you mean. How is it a bad investment, if you buy something that is not easily available in the market, but is in great demand?
_________________

for every person who doesn't try because he is
afraid of loosing , there is another person who
keeps making mistakes and succeeds..

Kudos [?]: 136 [0], given: 0

Manager
Joined: 07 Jun 2007
Posts: 58

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

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30 Jun 2007, 11:06
crazy123 wrote:
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.

9. 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.

OA iS E

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

VP
Joined: 03 Apr 2007
Posts: 1340

Kudos [?]: 833 [0], given: 10

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30 Jun 2007, 14:03
crazy123 wrote:
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.

9. 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.

Late E. This CR is similar to the one on "Travel agency".
Just trying to draw a pattern

Kudos [?]: 833 [0], given: 10

Re: CR..test 1   [#permalink] 30 Jun 2007, 14:03
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