A few years after your graduation, you are deciding between buying a home or remaining as a renter. You found that the required rate of return for real estate in your city is 5.4%. You are currently paying monthly rent of $3,000. Average home price in your city is $450,000. 

Should you rent or buy? Explain why and show your calculation.

Answer rating: 100% (QA)

To determine whether it is better to rent or buy we need to compare the cost of renting to the cost ... View the full answer