With procedure for making the rent-or-buy decision, you should rent if the total cost of renting is less than the total cost of buying or buy if the total cost of renting more than the total cost buying.In this scenario do you rent or buy?

Homework #4: Buy or rent analysis

According to the worksheet, buying the condo is more economical than renting it. It is cheaper to rent for 10 years than it is to purchase a condo. The cost of purchasing a condo after 10 years of rental is $96,400. Real estate values are likely to increase by 2.2% over the next 10 years, so there could be greater returns if you hold it for longer periods. Therefore, it would be beneficial to you submit a recommendation to purchase the condo.

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