Dana & Abdulla are trying to decide whether to rent or purchase housing. Dana favors buying and Abdulla leans toward renting, and both seem able to justify their particular choice. Dana thinks that the tax advantages are very good reason for buying. Abdulla, 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 Abdullas belief that cash flow is better with renting.
3. Suggest some reasons why Dana might consider renting rather than purchasing housing.
4. Suggest some reasons why Abdulla might consider buying rather renting housing.
5. Is there a clear-cut basis for deciding whether to rent or buy housing? Explain why or why not.