Terms in this set (16)
Total cost / number of people = $/each person
Advantages of renting
Mobility, few responsibilities, lower initial costs
Disadvantages to renting
Few financial benefits, restricted lifestyle, legal concerns, no opportunity home value
Advantages of buying
Tax savings, pride of ownership, potential Eco gain
Financial risks, limited mobility, higher living costs
Costs with buying
Down payment, closing costs, home maintenance, property taxes
Costs with renting
First month rent, last month rent, security, pet deposit
Rent x #of months + security deposit
Down payment + closing cost
Rent x months (12) x how many years- (college=4) + security deposit + rent(months)
Buy x months x years + down payment + closing costs
R + deposit = total x 2
R + deposit / 2 = total
Mortgage payment x (12 x years) = $ + close = buys
Xrent + security deposit + (12 x years) = $
(Solve for X)
Pat and his friend...share rent each month
Higher living cost for homeowner
Mika wants to buy a condominium. He has the choice of buying it now or renting it with the option to buy at the end of 3 years. If he buys now, he could put $0 down, but he must pay closing costs of $7,100. His monthly mortgage payment will be $675.
Mika decides to rent instead of buy because it is the cheapest option over the first 3 years. His move-in costs are one months rent and a $750 security deposit.To the nearest dollar, what is the maximum amount of monthly rent payment he could pay?
When renting an apartment, In addition to the first month's rent, the amount to move-in often requires the last month's rent as well as a security deposit. The rent is $725 per month and the security deposit is $900. Although some of the money may be returned upon moving out of the apartment, how much money must be paid to the apartment management to be able to live in the apartment the first year?
Sal and two of his friends rent an apartment together. Their total cost to move in included first months rent, last months rent and a security deposit of $1,200. If Sal paid a total of $1,000 to move in, how much is his share of the rent each month?
Aleisha wants to buy a condominium. She has the choice of buying it now or renting it with the option to buy at the end of 4 years. If she rents now, she must pay a deposit of $1,500 and pay rent of $865 per month. If she buys, she would need closing costs and her mortgage payment would be $844. How much would her closing costs need to be in order for the cost to buy to be the same as the cost to rent?
Viola moves frequently due to her job, but she thinks that she will stay in the area for 4 years. Therefore, she decided to buy. Choose the best evaluation of Viola's decision.
Since the costs would be the same over the 4 year period, she will have made a good decision if the property value does not decrease.