Entry 22 - Renting vs. Owning

1. Detail a location (city, state) where you would like to reside for a majority of your career.
1. Chino, California
2. I can stay in my hometown a majority of my career is in Southern California.

3. Own a house located at 6834 Corybus St, Chino, CA 91710

4. rent a house located at 15996 Moonflower Ave,Chino, CA 91708

2. Find one home that you feel you would be able to actually afford to Purchase (the purchase price is up to you, but be realistic) and detail the following:
1. How did you find this property? (URL, webpage, listing – show details)
1. http://www.zillow.com/homes/for_sale/Chino-CA/house,condo,apartment_duplex_type/55029112_zpid/44583_rid/3-_beds/0-500000_price/0-1816_mp/days_sort/34.028335,-117.650807,33.997067,-117.704451_rect/14_zm/
2. What is your purchase price?
1. $414,900
3. Down payment (assume 10% - a one time cost)
1. $41,490
4. Total estimated closing costs for your loan (assume 3% - one time cost)
1. $12,447
5. Total monthly mortgage payment:
1. Principal and Interest payment is $1783 per month (assume an interest rate of 4.00% for 30 years).
2. Property Taxes are $415 per year, or $34.58 per month.
3. Homeowners Insurance is $67 per year, or $5.58 per month.
4. (do not concern yourself with the PMI payment your loan calculator may calculate for you – just list your P I T I payment for i-ii-iii above)
1. PI: $1783 per month
2. T: $415 per year or $34.58 per month
3. I: $67 per year or $5.58 per month
6. Estimate your total monthly utility expenses for: electricity, water, garbage, and natural gas
1. electricity: $200 per month
2. water: $70 per month
3. garbage: $40 per month
4. natural gas: $40 per month

Buying

3. Find a similar home near the same location that you would possibly like to Rent and detail the following:
1. How did you find this property? (URL, webpage, listing – show details)
1. http://www.zillow.com/homes/for_rent/Chino-CA/house,condo,apartment_duplex,townhouse_type/79556478_zpid/44583_rid/days_sort/34.055646,-117.518864,33.91758,-117.824421_rect/11_zm/?view=map
2. Monthly rent
1. $1950
3. Security deposit (one time fee)
1. $2000
4. Total monthly utility expenses: electricity, water, garbage, and natural gas
1. electricity: $200 per month
2. water: $70 per month
3. garbage: $40 per month
4. natural gas: $40 per month
5. I assume the same as the the house I’m buying because it is in the same area, but the utilities are ultimately depend on the rental agreement
5. Renters insurance cost per year is ________ or _______ monthly.  Or is renters insurance even offered in your area?
1. No insurance
6. Restrictions of the property (pet owners, smokers, etc.)
1. No restrictions

4.  Finally, discuss the advantages and disadvantages of both renting vs. buying and how these might affect your renting or purchasing decisions.

When someone is owning a home the homeowners get to own a house, save on taxes, and there could be economic gain. The problem is that the homeowners would have to maintain the house, worry about payments and mortgages, the value of the house, and it might be a challenge selling the house. When someone is renting the renters get to be more mobile and don’t have to worry about selling, less responsible , and they can pay less in rent. On the other hand, renters have to worry about legal problems, restrictions of the landlords, and less tax reductions.

I feel like owning is still the best way to go. I value less restrictions, economic gain, and more tax reductions. The idea of getting to own a house has always been a goal of mine. I also like the idea of owning property and getting to do what I want with it.

Renting