Indicate Your Assumptions and Calculations and Comment on Whether Buying

question 41

Essay

Indicate your assumptions and calculations and comment on whether buying versus renting would make more sense in the following scenario.The couple each grosses $4000 monthly income.They have $40000 saved for the house purchase and are currently renting a two bedroom aChapterment for $1500 a month.They want to purchase a two bedroom condo for $300000 ,which has monthly expenses as follows: property tax $220,heat $100,and condo fees $350.Consider closing costs,cash flow and other calculations to justify whether you recommend they buy,or not.

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Definitions:

Scheduled Payments

Regular payments set up over a timeframe for repaying a loan or other financial obligation.

Credit Report

A detailed report of an individual's credit history prepared by a credit bureau used by lenders to determine creditworthiness.

Metro Bank

A retail and commercial bank operating primarily in the United Kingdom, offering banking and financial services.

Inaccuracies

Errors, mistakes, or discrepancies that deviate from correctness or truth.