EGR403-01 Buy and Rent Now VS. Save and Buy laterProject ScenariosBuyer DescriptionScenario ConstantsGoalEGR403-01 EGR403-01 Buy and Rent Now Buy and Rent Now VS. VS. Save and Buy laterSave and Buy laterTeam 7Team 7Mark RuffinMark RuffinGerard ReyesGerard ReyesSteven CorralSteven CorralWilliam TamaeWilliam TamaeProject ScenariosProject ScenariosScenario OneScenario OneRent out a paid-off house and use that Rent out a paid-off house and use that money to help pay for a new house.money to help pay for a new house.Scenario TwoScenario TwoStay in the paid-off house for ten years Stay in the paid-off house for ten years and use the money saved as a down and use the money saved as a down payment for a new house.payment for a new house.Buyer DescriptionBuyer Description40 year old Engineering Graduate40 year old Engineering GraduateSalary of $90,000Salary of $90,000Looking to buy $500,000 houseLooking to buy $500,000 housePomona ResidentPomona ResidentScenario ConstantsScenario ConstantsSell off the house in 10 years in either Sell off the house in 10 years in either scenarioscenarioBoth houses appreciateBoth houses appreciateCurrent HouseCurrent House3 bedroom (1500 sq. ft.) 2 car garage3 bedroom (1500 sq. ft.) 2 car garageRent = $2,000/monthRent = $2,000/monthNew House New House $750,000 $750,000 30 year loan30 year loanGoalGoalAt 7% interest on the At 7% interest on the mortgage, which is the mortgage, which is the better option?better
View Full Document
Unlocking...