Homework#4: Rent or Buy Analysis – savvyessaywriters.net | Savvy Essay Writers

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With procedure for making the rent-or-buy decision, you should rent if the total cost of renting is less than the total cost of buying or buy if the total cost of renting more than the total cost buying.Details:Rent: Monthly payment of $900/mBuying the Condo: Location mid town Houston – Cost=$200,000; Down Payment=$40,000; Mortgage=$160,000, 30 yr fixed at 3.5%. Additional costs of $4500. Property Tax rate of 2%; homeowners insurance of .5%; maintenance .8%; association fees $200/m; after-tax rate of return on your investments 3%. Home appreciation ( gain in value ) 2%In this scenario do you rent or buy?Complete worksheet 5.2 and submit to dropbox. Make sure you make the recommendation.

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