Assignment:
Complete a Microsoft Excel Spreadsheet as described below and write a paper of between 700 and 1,050 words addressing the following analysis about the property in which you currently reside.
Scenario 1
If you own this property, assume that you are either moving out of state or have decided to buy a larger home. You want to consider retaining ownership of your current home and putting it on the rental market. Conduct a comprehensive cost analysis to identify and quantify the costs associated with retaining and renting the house. Then, use the Internet or a real estate professional to estimate the potential rental income from the property. Show your work on a Microsoft Excel spreadsheet and answer the question, "Should you retain ownership of your existing home while covering all the expenses, or should you sell it?" Be sure to factor in the potential need to cover operating costs during a number of months in which the house is vacant.
Scenario 2
If you are renting the property in which you currently reside or if you are living with your parents, assume you wish to purchase a comparable home in this area. Research the Internet or real estate advertisements in the local paper. Identify a comparable home and then conduct a comprehensive analysis to identify and quantify the costs of your existing living arrangement and the costs of purchasing and owning your own home. Be sure to identify all the financing costs (mortgage) and operating costs (property taxes, utilities, insurance, etc.). Show your work on a Microsoft Excel spreadsheet and answer the question, "Should you buy a home or continue to rent, or continue to live with your parents?"