Personal Finance (MindTap Course List)
13th Edition
ISBN: 9781337099752
Author: E. Thomas Garman, Raymond Forgue
Publisher: Cengage Learning
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Discuss housing affordability in general. When researching your response consider the following: personal income, housing prices, mortgage rates, nonmortgage expenses, and also personal/mental/social positives and negatives of owning vs renting.
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.)
Why does a house broker usually recommend her clients the median house price in a community but not average price?
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- 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…arrow_forwardUsing spreadsheet (e.g, Excel), design a decision aid to help you complete the following task. You are looking for a new apartment and decided to go through a realtor instead of shopping for the apartment through advertisments. Avbel Realty provided you with the following list of seven available apartments in the area specified. The apartments have been evaluated by Avbel Realty using 12 different criteria (listed as 2-13) on the speedsheet in figure 5.17) Here are some suggestions on how to set up your decisions aid: (1) Decide which of the 12 factor you want to inclide in your decision model. (2) For each factor selcted in step (1), decide how much decision weight you want to assign it relative to the other factors. Suggestion: You may want to distribute the decision weight so that they add up to 100 (i.e, 100 percent). Be prepared to discuss and justify your decisions about factors and weights, especially in comparison to the factors and weights used by other students. References ;…arrow_forwardAlthough 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.arrow_forward
- 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.arrow_forwardIssue is affordable housing- 1. What is the housing issue, what is the community, and how is the issue affecting the community. What are possible options that can be taken to change the issue? What is your recommendation of the right solution for the issue?arrow_forwardHere is my situation. I currently own a heating and cooling business here in Indianapolis. I'm thinking about opening one in Sarasota, Florida. My plan is to work in both places. My wife and I currently rent a condominium here in Indy and we plan on renting one in Sarasota. Of course, I would be in Florida when the weather is bad here. What will I be able to write off if I live and work in both places? I would like to deduct all of the costs (rent, transportation to and from, meals, etc.). What IRS Code sections, Treasury Regulations, or Court cases would you refer to? What additional information would you need to determine if or what extent these costs could be deducted?arrow_forward
- Here is my situation. I currently own a heating and cooling business here in Indianapolis. I'm thinking about opening one in Sarasota, Florida. My plan is to work in both places. My wife and I currently rent a condominium here in Indy and we plan on renting one in Sarasota. Of course, I would be in Florida when the weather is bad here. What will I be able to write off if I live and work in both places? I would like to deduct all of the costs (rent, transportation to and from, meals, etc.). Explain to me about Facts Issue Analysis Conclusion??arrow_forwardWhat finances do you need to have to achieve getting somewhere with Cosmetology? For instance to build your own salon?arrow_forwardCompare the advantages of renting to buying. Why is it not always better to buy a house then to rent a house?arrow_forward
- How did the introduction of mortgage financing help shape American cities after WWII? Group of answer choices Encouraged banks to open in downtown environments thus revitalizing American city centers Gave potential homebuyers loans as long as they could put 20%, and sometimes less as a down payment Gave potential homebuyers loans as long as they could put at least 50% of the cost of the house toward a down payment Encouraged home builders to construct homes in downtown areas, especially condos and town homesarrow_forwardAn investor has approached you to assist him in analyzing a potential real estate investment in Mombasa town. The property is an heavy industrial building. Prepare a comprehensive due diligence checklist with detailed explanation for each item.arrow_forwardWhat 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?arrow_forward
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