Purchase versus Lease a Home.


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Purchasing versus Renting a home. Examination Considerations. Purchaser/Leaser ... Moneylender: American Home Loans. 30 Year Loan. Support costs - $100/month. Income ...
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Slide 1

Purchase versus Lease a Home EGR 403, Summer 2004, Team 10 Jeffrey Scheinost – Organizer Stephen Casey – "Geek" Omabamid Odubela – Summarizer Mohammad Fazil – "Nerd"

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Introduction Buying versus Renting a home Analysis Considerations Buyer/Leaser-joined family unit wage $90,000 Invests 10% yearly Assume charges are steady 25% Can have cash for initial installment

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Scenario 1-Buy Condominium in Glendale Priced at $370,000 1245 s.f., 3 room, 2.5 shower Puts 20% down Fixed Mortgage 5.6% A.P.R. Bank: American Home Loans 30 Year Loan Maintenance costs - $100/month Cash Flow Analysis

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Scenario 2-Buy Condominium in Glendale Priced at $370,000 1245 s.f., 3 room, 2.5 shower 100% Financed w/Private Mortgage Insurance Fixed Mortgage 5.6% A.P.R. Moneylender: American Home Loans 30 Year Loan 30 year advance Maintenance costs - $100/month Cash Flow Analysis

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Scenario 3 - Lease Apartment situated in Glendale CA 1235 s.f. 2 room, 2.5 shower Rental cost of $2,499 every month ($1000 Security Deposit) Annual rent increment of 6% No Maintenance costs included Cash Flow Analysis

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