Based on the following data, would you recommend buying or

Based on the following data, would you recommend buying or renting?

Rental Cost

Annual rent ...........$7,380

Insurance ............ $145

Security deposit .......... $650

Buying Cost

Annual mortgage payments .....$9,800 ($9,575 in interest)

Property Taxes ...........$1,780

Insurance/maintenance .......$1,050

Down payment/closing cost .....$4,500

Growth in equity .......... $225

Estimated annual appreciation ....$1,700

Assume an after-tax saving interest rate of 6 percent and a tax rate of 28 percent.