Home Purchase

Consider the life-changing decision of buying a first home. Search on an intemet site for a home available in your area (my area is Palmdale, CA USA). Given current mortgage interest rates, property tax estimates, the cost of upkeep, insurance, utilities, and other costs (at a minimum), do you believe buying this home is a wise financial decision? Now compare the cost of rent for an apartment of similar size in the same area. How does this compare with the cost of maintaining a home for one year? Create a short but detailed analysis of your findings that compares the total cost of the purchase of a home with the total cost to rent an apartment. Which decision is optimal? Are there any qualitative points to consider in addition to your calculation?                  

Sample Solution