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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?

Sasha’s monthly expenses would be less for buying than for renting.
The extra expenses in the mortgage payment cover all maintenance and repairs.
Sasha’s down payment will likely be less if she decided to buy.
Sasha will own the house and earn equity as its value increases.

Respuesta :

Answer:

The advantage over buying the house over renting the apartment is that, you would own the house instead of just renting it. If you own the house, and the mortgage covers everything including repairs if you buy the house while if you need a repair in a rented apartment it would probably cost a fortune. Living in an apartment means that if the owner decides they want to rent the house or sell the house, that you will have to move (or pay for a mortgage which you might as well buy the house that's bigger than buy the apartment.)

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