Based on the following data, would you recommend buying or renting?
Rental Cost:
Annual rent ...........$7,380
Insurance ............$145
Security deposit ..........$650
Buying Cost:
Annual mortgage payments .....$9,800 ($9,575 in interest)
Property Taxes ...........$1,780
Insurance/maintenance .......$1,050
Down payment/closing cost .....$4,500
Growth in equity ..........$225
Estimated annual appreciation ....$1,700
Assume an after-tax saving interest rate of 6 percent and a tax rate of 28 percent.