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Based on the theory, which is better: to rent or to buy? The decision of whether to rent or buy your housing is a personal decision that is based on both your lifestyle and your finances. While the financial aspect of the decision is important, it is important not to base your rent-or-buy decision solely on the numbers. Your personal needs and housing market conditions are important. The freedom to decide what, when, and what color you're going to paint can't be quantified, but it is very relevant to the rent-or-buy discussion. What are the theoretical and lifestyle aspects of the rent-versus-buy decision? Among the personal and lifestyle factors that are relevant to this decision are: . Your desire for privacy Your desire to fix up your living space and make it your own The personal satisfaction that results from homeownership Read each of the following situations and determine whether it makes more financial sense to rent or to buy the home. Dmitri Dmitri has three cats and two dogs and would not want to be separated from them if a housing option would not permit pets. Based solely on these factors and assuming that everything else remained constant, should Dmitri rent or purchase? O Rent O Purchase Antonio To avoid losing his job entirely, Antonio just accepted a downgraded position. It pays 25% less and provides fewer benefits, including a substantially lower end-of-year bonus. His current bills consume 93% of his monthly income, and he has no savings set aside at this time. Based solely on these factors and assuming that everything else remained constant, should Antonio rent or purchase? O Rent O Purchase Several financial or economic factors are relevant to the rent-or-buy decision. From the following list, identify the financial or economic factors that should be considered when performing this analysis. Check all that apply. Current and expected future housing-related tax deductions O Current and expected future housing prices Whether you want to deal with the repairs and maintenance of the home

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