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? 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.

When Sasha is deciding between renting and buying an apartment in the new city, especially given that she may need to move in two years, she should carefully evaluate several factors to make an informed decision. Here's a breakdown of the key considerations: 1. **Monthly Costs of Renting vs. Buying:** - **Renting:** \$800/month for the apartment + \$150 for utilities = **\$950/month**. - **Buying:** \$1,000/month mortgage (including taxes and insurance) + \$200 for utilities = **\$1,200/month**. *Analysis:* Renting appears cheaper on a monthly basis. However, owning a property can build equity over time, which renting does not provide. 2. **Extra Expenses for Maintenance:** - **Renting:** Typically, landlords handle major maintenance issues. - **Buying:** Sasha would be responsible for maintenance and any unexpected repairs, which can add significant costs over time. *Analysis:* Owning a home comes with additional financial responsibilities that renting does not entail. 3. **Amount of Down Payment:** - Sasha has enough saved for a down payment, which is a positive factor. However, she should consider how much of her savings this will deplete and whether it affects her financial flexibility, especially if unexpected expenses arise. 4. **Expense of Selling the Home When Moving:** - **Selling Costs:** Real estate transactions involve costs such as agent fees, closing costs, and potential price fluctuations in the housing market. - **Market Conditions:** If the housing market declines in the next two years, Sasha might not recoup her investment. *Analysis:* Given her potential need to move in a short time frame, the costs and risks associated with selling a property could outweigh the benefits of homeownership in this scenario. **Conclusion:** While both renting and buying have their advantages, **the most critical factor for Sasha to consider is the expense and feasibility of selling the home when she needs to move in two years**. Additionally, evaluating the total monthly costs, potential maintenance expenses, and the impact of the down payment on her savings are essential to making a well-rounded decision.