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- Compare the disadvantages of renting to buying. List five things that could cause your house value to drop.
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- Although the selection of housing is usually based on life situation and financial factors, we should also consider what we might have to give up. In this context, it is correct to say that: * One of the main advantages of owning a previously owned house is the fewer responsability for maintenance. One of the main advantages of renting an apartment is the pride of ownership. One of the main disadvantages of owning a manufactured home (mobile home) is to be more expensive than other ownership options. The lost earnings from interest on the money used for a down payment on a home is an important opportunity cost when we decide to buy a house or make a mortgage.Most of us have had experience renting. Share your experience. List two good things you have done in the past that were helpful to you when you were searching for and renting an apartment. Also, name two mistakes you have made or lessons you have learned in renting an apartment. If you have never rented an apartment, what are the four things you think are most important when finding and renting an apartment?Explain why you have never rented.Rent versus buy analysis - Part 2 Which is better: to rent or to buy? The decision of whether to rent or buy housing is a personal decision that is based on both your lifestyle and your finances While most financial experts argue that the financial aspect of the decision. is important, it is also important not to base your rent- or buy decision solely on the numbers. Your personal needs and housing market conditions are important. However, it is still necessary to perform the financial analysis. Tim and his wife are trying to decide whether to rent or to purchase a new townhouse. After looking for several months, they ve narrowed their choice down to one particular house, and the builder is willing to lease or sell-depending upon the preference of the buyer. To perform a rent or buy analysis, Tim and his wife have collected the following information: if they rent, the builder will require monthly rental payments of $1,300 and a security deposit equal to two months of rent Since they…
- The Bainters want to estimate annual costs for purchasing the home so they can compare them with the costs they estimated for renting. These costs are expenses the Bainters will have only if they purchase instead of rent: monthly mortgage payment $200 per year for HOA fees $1,750 per year for property taxes $1,950 per year for home maintenance $75 per month for water and sewer services $10 per month for trash and recycling services $65 per month for internet $110 per month for homeowners' insurance Approximately how much should the Bainters budget for a year? Your answer should include the total amount the Bainters should budget the calculations or an explanation of how you determined the answerWhy does a house broker usually recommend her clients the median house price in a community but not average price?Discuss the following scenarios, then to decide which option is best and why. Susan and Jose rent an apartment and have been saving for a house. They now have $10,000 in the bank. Susan owes $4,000 on a low-interest credit card; Jose owes $4,500 on his car. Susan wants to pay the credit card and car off to eliminate the debt. Jose wants to keep the cash in the bank and continue saving for the house. What are the pros and cons of each one’s argument? Please be detailed and concise. Feel free to use a chart or table to represent your argument. Jack is a 40-year-old construction worker. He makes $33,500 per year. He only saves 5 percent of his salary per year since it is all he feels he can afford. His friend Joe suggests that he invest his money conservatively so that it won’t lose as much value if the market takes a nosedive. His other friend Jim thinks that investing aggressively with high risk is the way to go since Jack has several years to work to make up for any losses. What do…
- Calculate the appreciation rate of each home. Show your work. Then, write at least two paragraphs that discuss which home you’d like to buy, based on the rate at which it will appreciate and its features. In paragraph 1, include each appreciation rate. Why do you think the appreciation rates are different for each home? Explain your reasoning. In paragraph 2, compare and contrast the features of the homes, based on what you would be looking for in a house. Be sure to state which home you would want to buy. (If you buy Home 1, you think that you will own it for 3.5 years, but if you buy Home 2, you will likely own it for 7.25 years. You’re unsure how long you might stay in Home 3, but you think it would be about 4.75 years.)Which type of risk attitude is exhibited by a property owner who decides to buy property insurance with a higher deductible in order to lower premium costs? a. risk obsessed b. risk seeking c. risk avoiding d. risk optimizing. Need typed answer only.Please give answer within 45 minutesThe figure below shows costs for a current home mortgage versus a refinanced home mortgage. Refinancing has initial costs but results in a lower monthly payment. Which best describes the lines?
- Use the following information. When "trading up," it is preferable to sell your old house before buying your new house because that allows you to use the proceeds from selling your old house to buy your new house. When circumstances do not allow this, the homeowner can take out a bridge loan.Tina and Mike have sold their house, but they will not get the proceeds from the sale for an estimated 3 months. The owner of the house they want to buy will not hold the house that long. Tina and Mike have two choices: let their dream house go or take out a bridge loan. The bridge loan would be for $88,000, at 8.5% simple interest, due in 90 days. (Round your answers to the nearest cent.) (a) How big of a check would they have to write in 90 days?$ (b) How much interest would they pay for this loan?Suppose burglars trashed your apartment and stole your personal property. Your rent is $350 per month and you had to live in another apartment house for two months while the landlord had the apartment put back into livable condition. Under which section of an HO policy would you be covered and how much would you recover because of the move? A) Section I coverage C, $350 B) Section I coverage C, $700 C) Section I coverage D, $350 D) Section I coverage D, $700 E) Section II coverage, $350What is the best way to invest your saved up money after retirement? Buy stocks or construct a building to be rented out to others as dormitory? And why?
