PLEASE ANSWER QUESTION 6

B D E F G H 1 J 1 Is better to rent or buy a condo? Use the information below to figure it out. 1 1 3000 per month includes parking, no utilites 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 rent is 1 can buy similar condo for condo fees of property tax repair and maintenance downpayment iclosing costs if sell condo in next 2 to 10 years mortgage rate 620000 likely sell after 5 to 10 years 500 monthly 300 monthly 600 yearly (convert to monthly) 20% of purchase price 2000 5% of selling price to realtor plus 2000 in closing costs 4% APR, 25 year mortgage with monthly compounding 496000 60 A B D E F G H Figure out the: 1. Down payment 2. mortgage payment 124000 S2,618.07 3. Total monthly cost of buying condo mortgage condo fees of property tax repairs/maint S3,468.07 S2,618.07 500 300 50 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 4. enter rent 3,000 5. Net additional cost of buying v renting monthly basis S468.07 cost more (less) per month to buy 6. Senario Analysis a) what do you owe after 2 years? b) what do you owe after 5 years? c) what do you owe after 10 years