Question

housing decisions
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.
sasha’s new company has told her that she will be required to move at her own expense in two years. what should she consider before making her decision?
options:

• the monthly costs of renting and buying.
• the extra expenses needed for maintenance while she lives in the house.
• the amount of the down payment she will need to make.
• the expense of selling the home when she leaves the city.

one advantage of renting is that it is easier to walk away than it is when you own a home. consider how this fact affects sasha’s decision.

Explanation:

Sasha will move in 2 years, so the expense of selling the home when she leaves the city is crucial. Renting has less long - term commitment, but buying involves selling costs later. Monthly costs, maintenance, and down payment are less relevant as the time horizon is short (2 years). So the key factor is the expense of selling the home when she leaves.

Answer:

The expense of selling the home when she leaves the city.