Question: Based on the following data, would you recommend buying or renting? Rental Cost Annual rent $8,330 Insurance $240 Security deposit $1,125 Buying Cost Annual mortgage

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

Rental Cost

Annual rent $8,330

Insurance $240

Security deposit $1,125

Buying Cost

Annual mortgage payments $10,350(10,050 is interest)

Property taxes $2,160

Down payment/closing costs $5,050

Growth in equity $300

Insurance/maintenance $2,000

Estimated annual appreciation $2,650

Assume an after-tax savings interest rate of 8 percent and a tax rate of 26 percent. Assume this individual has other tax deductions that exceed the standard deduction amount.

Rental cost?

Buying cost?

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