Beruflich Dokumente
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Homebuying Case
Lisa Winnett, Riley Morris, & Taylor Gallagher
Greg has a dangerous occupation as a Newark, NJ city cop. They would like to live in the Newark area since he is often on call and working late nights. Cindy currently stays home but is interested in going back to school in the next few years to obtain her nursing degree. They have no money to put as a down payment for a new home, therefore they are considering an FHA loan or renting while they save up a down payment. They want a home that is move in ready and not needing much work. Their short term goals are to replace their vehicles, pay for Cindys schooling, and set up their will. Long term goals are to fund their childrens college funds and Invest in IRAs and retirement funds.
Estimated monthly housing payments: $1,340 Estimated Home purchase price: $182,000
Home Options
Option #1
Cons 1. No equity gained. 2. Less private space. 3. Rates rise over years. 4. Lack of decorum freedom.
Home Options
Option #2
Pros 1. Privacy. 2. Gaining equity. 3. Mortgage payment within plans and means. 4. Plenty of room for family growth
Cons 1. Appears as a rougher locale. 2. Bars on windows. 3. Been on market for a while. 4. May not be best schools for children.
Home Options
Option #3 $184,900
2 Family Unit
(rental investment)
Pros 1. Gaining equity. 2. Income opportunity. 3. Maximum opportunity for saving on other goals. 4. Learning opportunity . 5. Opportunity to turn into completely rental property.
Cons 1. More time consumed managing tenant. 2. Less privacy or sound barrier. 3. Potential for large expenses for tenant maintenance and turnover. 4. Less opportunity to save. 5. Higher initial investment.
Home Options
Option #4 $189,000
Pros 1. Privacy 2. Gaining Equity 3. Nicer neighborhood 4. Better schools for kids 5. Updated dcor and home amenities.
Cons 1. Less opportunity for saving. 2. Higher upfront costs. 3. Smaller lot. 4. Less parking for guests. 5. One-way street.
#2 Do your Homework
With the Hanas we will need to look at every detail about each of the home options and do a cost analysis. We will also look at neighborhood safety, closeness to Gregs employer, local school systems, & parks.
20
Credit Report 50 Termite & rodan inspection 150 Notary fee 50