You are currently renting a house for $2,000 per month.You have the opportunity to buy the house for $300,000 and will have a mortgage payment of $1,700/month.You can earn 8% after tax on your investments. Property taxes are $4,000 per year and insurance is $2,750 per year and will be the same whether you buy the house or continue to rent it. Your annual gross income is $75,000 per year. If you buy the house you will live there for 5 years and based on past data you can sell it for 10% more than you paid for it.

Question 1: Should you buy the house or rent the house?

Question 2: Using the information above, can you afford this house?