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Published byJared Christopher Briggs Modified over 8 years ago
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Buy vs. Lease a Home Jeffrey Scheinost – Organizer Stephen Casey – “Techie” Omabamid Odubela – Summarizer Mohammad Fazil – “Techie” EGR 403, Summer 2004, Team 10
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Introduction Buying vs. Leasing a home – Analysis Considerations Buyer/Leaser- combined household income $90,000 Invests 10% annually Assume taxes are constant 25% Can have money for down payment
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Scenario 1- Buy Condominium in Glendale Priced at $370,000 1245 s.f., 3 bedroom, 2.5 bath Puts 20% down Fixed Mortgage – 5.6% A.P.R. – Lender: American Home Loans – 30 Year Loan Maintenance costs - $100/month Cash Flow Analysis
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Scenario 2- Buy Condominium in Glendale Priced at $370,000 1245 s.f., 3 bedroom, 2.5 bath 100% Financed w/ Private Mortgage Insurance Fixed Mortgage – 5.6% A.P.R. – Lender: American Home Loans – 30 Year Loan 30 year loan Maintenance costs - $100/month Cash Flow Analysis
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Scenario 3 - Lease Apartment located in Glendale CA 1235 s.f. 2 bedroom, 2.5 bath Rental price of $2,499 per month ($1000 Security Deposit) Annual rent increase of 6% No Maintenance costs involved Cash Flow Analysis
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