Group VI: Personal Investment Options Purchasing versus Renting a House Pros and Cons

Team Members Organizers: Organizers: –Mudila –Priscilla Techies: Techies: –Glen –Ricky Summarizers: Summarizers: –Victor –Jake

Housing Type Three to four bedrooms Three to four bedrooms Two to three bathrooms Two to three bathrooms Location (San Dimas, California) Location (San Dimas, California) Space Space

Purchasing Purchasing Price Purchasing Price –$300,000 - $350,000 Down Payment Down Payment –10% Mortgage Rate Mortgage Rate –6.25% Annual Property Tax Annual Property Tax –1% Insurance Insurance –$1,000/year Monthly Payment: $1,850 - $2,100

Renting Security Deposit: Security Deposit: –First and Last Months Rent ($1,500) Monthly Rent: Monthly Rent: –$1,300 - $2,000 Insurance: Insurance: –$700/year

Purchasing Advantages Advantages –Stable environment –Privacy –Independence –Community –Pride of ownership –Credit benefits –Property builds equity –Write interest off to taxes Disadvantages Disadvantages –Maintenance –Taxes –Down Payment –Less Mobility –Foreclosure/loss of equity

Renting Advantages Advantages –Mobility –No Maintenance Cost –No Taxes –Cost Feasibility Disadvantages Disadvantages –No Equity –No Stability –No Tax Benefits –No Control Over Rent Increases –Restrictions to Owner Approval –Lack Of Privacy

Question Which decision is more feasible, purchasing a home or renting a home? Which decision is more feasible, purchasing a home or renting a home?Resources: Internet, Newspaper, Agents.