Question: Based on the following data, would you recommend buying or renting? rental cost, annual rent $7930, insurance $200, security cost $925.00 buying cost, annual mortgage

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

rental cost, annual rent $7930, insurance $200, security cost $925.00

buying cost, annual mortgage payments $10,750 ($9,850 is interest), property taxes $2,000, down payment/closing cost $5,450, grown in equity $900, insurance/maintenance $1,600, estimated annual appreciation $2,250

assume an after-tax savings interest rate of 5% and a tax rate of 26%. Assume this individual has othe tax deductions that exceed the standard deduction amount

calculate total rental cost and total buying cost.

Would you recommend buying or renting?

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