Alex and Chris are trying to decide whether to rent or purchase housing. Chris favors buying, and Alex leans toward renting, and both seem able to justify their particular choice. Chris thinks that the tax advantages are an excellent reason for buying. Alex, however, believes that cash flow is so much better when renting. See whether you can help them make their decision.

1. Does the home buyer enjoy tax advantages? Explain.
2. Discuss Alex's belief that cash flow is better with renting.
3. Suggest some reasons why Chris might consider renting rather than purchasing housing.
4. Suggest some reasons why Alex might consider buying instead of renting housing.
5. Is there a clear-cut basis for deciding whether to rent or buy housing? Explain why or why not.