Group VI Personal Investment Options Purchasing versus Renting

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Group VI: Personal Investment Options Purchasing versus Renting a House Pros and Cons

Group VI: Personal Investment Options Purchasing versus Renting a House Pros and Cons

Team Members • Organizers: – Mudila – Priscilla • Techies: – – Glen Ricky

Team Members • Organizers: – Mudila – Priscilla • Techies: – – Glen Ricky – – Victor Jake • Summarizers:

Housing Type • Three to four bedrooms • Two to three bathrooms • Location

Housing Type • Three to four bedrooms • Two to three bathrooms • Location (San Dimas, California) • Space

Purchasing • Purchasing Price – $300, 000 - $350, 000 • Down Payment –

Purchasing • Purchasing Price – $300, 000 - $350, 000 • Down Payment – 10% • Mortgage Rate – 6. 25% • Annual Property Tax – 1% • Insurance – $1, 000/year Monthly Payment: $1, 850 - $2, 100

Renting • Security Deposit: – First and Last Months Rent ($1, 500) • Monthly

Renting • Security Deposit: – First and Last Months Rent ($1, 500) • Monthly Rent: – $1, 300 - $2, 000 • Insurance: – $700/year

Purchasing • Advantages – – – – Stable environment Privacy Independence Community Pride of

Purchasing • Advantages – – – – Stable environment Privacy Independence Community Pride of ownership Credit benefits Property builds equity Write interest off to taxes • Disadvantages – – – Maintenance Taxes Down Payment Less Mobility Foreclosure/loss of equity

Renting • Advantages – – Mobility No Maintenance Cost No Taxes Cost Feasibility •

Renting • Advantages – – Mobility No Maintenance Cost No Taxes Cost Feasibility • Disadvantages – – – No Equity No Stability No Tax Benefits No Control Over Rent Increases Restrictions to Owner Approval Lack Of Privacy

Question • Which decision is more feasible, purchasing a home or renting a home?

Question • Which decision is more feasible, purchasing a home or renting a home? Resources: Internet, Newspaper, Agents.