Down payment: 124,000

Mortage Payment: 2,618.07

Is better to rent or buy a condo? Use the information below to figure it out. rent is 3000 per month includes parking, no utilites can buy similar condo for condo fees of property tax repair and maintenance downpayment closing costs if sell condo in next 2 to 10 years mortgage rate 620000 likely sell after 5 to 10 years 500 monthly 300 monthly 600 yearly (convert to monthly) 20% of purchase price 2000 5% of selling price to realtor plus 2000 in closing costs 4% APR, 25 year mortgage with monthly compounding 6. Senario Analysis a) what do you owe after 2 years? b) what do you owe after 5 years? c) what do you owe after 10 years? 7. price sold after 2,5, or 10 years if the price is up 2% a year for 5 years up 10% after 10 years x % a year for 10 years (you choose) constant after 2 down by 10% after 2 years 620000 constant after 5 years 620000 8. Was it a good investment under the above senarios? (don't forget 5 % of selling price to realtor plus 2000 in closing costs) (assume would have been able to invest funds at the same monthly rate as the mortgage) 0.005 opportunity cost of not investing the funds would Opportunity Profit after have if rented cost of down profit from sale closing costs instead payment (S11,000,00) (S13,000,00) net benefit of owning Price: a)constant after 2 years b) down by 10% after 2 years c) up 2% a year for 5 years d) constant after 5 years e) up 10% after 10 years x% break even