Use the "Excel: Renting vs Buying" template located under "Week 6. Borrowing (Mar 11)". Imagine the following assumptions: Mortgage: 60m2; price per m2 is 4000; downpayment is 20%; mortgage is is for 30 years; fixed interest rate is 2.1%; base interest rate is 3.5% Renting: 60m2; price per m2 is 18; Other assumptions:
Returns on stocks is 6% Returns on real estate is 2% Saving rate is 50% Select all that is correct.

Question

Use the "Excel: Renting vs Buying" template located under "Week 6. Borrowing (Mar 11)".  Imagine the following assumptions: Mortgage:  60m2; price per m2 is 4000; downpayment is 20%; mortgage is is for 30 years; fixed interest rate is 2.1%; base interest rate is 3.5%  Renting:  60m2; price per m2 is 18;   Other assumptions: 
 Returns on stocks is 6% Returns on real estate is 2% Saving rate is 50%     Select  all  that is correct.

Accepted Answer

If you choose to rent, and invest available capital and saving in stocks, in 30 years you will have less in stocks than the market value of your apartment

Accepted Answer

if return on real estate is 0%, then renting becomes a more profitable option

Accepted Answer

given these assumptions, purchasing the apartment is more profitable than renting

Accepted Answer

If you choose to rent, and invest available capital and saving in stocks, you will have about 286000 EUR in stocks after 30 years

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Use the "Excel: Renting vs Buying" template located under "Week 6. Borrowing (M...

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