Project Proposal Presentation Andy Funes Ta-Lun Huang Justin A. Klotz Steven Roos
Team Members Organizer Techie Summarizer Justin A. Klotz Andy Funes Steven Roos Summarizer Ta-Lun Huang
Research Topic Commute v.s. No Commute To make a comparison whether it is more economical to: Purchase an inexpensive home far away from work and commute Purchase a more expensive home close to work to prevent commute. Example: Drive from Palmdale to LA or Work & Live in LA
Overview Cost of Living Cost of commute Mortgage Property Tax Fuel Maintenance Depreciation Value of Time
Assumptions Engineer With 10 Years of Experience Working as Consultant Equivalent Homes 30 Yrs. Fixed Rate Mortgage Same Vehicle Homes Appreciate at Historical Rate Assume all factors not discussed are EQUAL
What Are We Going to Research & Compare? Net Monthly Cost Total Value of Investment 5 Yrs. 15 Yrs. 30 Yrs. Future Value of Money Saved Sensitivity Analysis
Resources Historical Home Value Data Mortgage Rate Vehicle Information Internet e.g. www.zillow.com Mortgage Rate Bank Vehicle Information Internet e.g. www.kbb.com Traffic & Commute Information CalTrans Internet e.g. www.sigalert.com
Questions?