Question

Sasha has just gotten a new job in a nearby city. After comparison shopping, she found that renting a nice two-bedroom apartment would cost around $800 per month. Her utilities would cost about $150 per month. Sasha has enough money saved for a down payment, and she found that she can buy a three-bedroom house or condo with a mortgage payment of $1,000 per month, including taxes and homeowner's insurance. Her utilities would cost about $200 per month. What is the advantage of buying the house over renting the apartment?

Answer 1

Ill provide the answer choices here, assuming its from edge.

A) Sasha’s monthly expenses would be less for buying than for renting.

B) The extra expenses in the mortgage payment cover all maintenance and repairs.

C) Sasha’s down payment will likely be less if she decided to buy.

D) Sasha will own the house and earn equity as its value increases.

the correct answer is D) Sasha will own the house and earn equity as its value increases.

Answer 2

Answer: If she rented, the cost is $800 per month, and the utilities are $150 per month.

In the other hand, if she buys, the monthly cost is $1000 in the mortgage payment and $200 in utilities, here you can see that, per month, renting is a lot cheaper (which has a lot of sense)

But the advantage of buying rather than renting is that if Sasha buys, in the end, Sasha will have a house or condo, which is a more efficient investment in the long run.