Homebuying Case Study

Elizabeth Rojo
Seyed Abdallah
Personal Information:
● Occupation:
● Age: 31 ● Monthly payments:
Investor
● DOB: 09/24/1986 $2,088.58
● Salary: $63,000
● Gender: Male ● Liabilities:
● Credit Score:
● Status: Single ○ Renter’s
775
insurance
○ Car loans
○ Student loans
What Seyed is Looking for...

● Homeownership
● Renovated/remodeled
● 1-2bedrooms
● 1.5 bathrooms
● Garage/parking
● Close to a gym
Personal Budget
Monthly Expenses
Monthly Net Income
Expenses
Types of Income Amount Rent $900.00
Car Payment $450.00
Annual Income $63,000.00
Student Loans $150.00
Monthly Net Income $5,250.00 Food $300.00
Utilities $236.08

Renter Insurance $12.50

Transportation $40.00
Total Cost $2,088.58

Mr. Abdallah is left with $3,161.42 every month

after paying his monthly expenses.
Mortgage
Mr. Abdallah's interest would be 4% since he makes $63,000 annually his interest would be in
this bracket .

15-Yr. Mortgage 30-Yr. Mortgage

$5,250 * 0.28 = $1,470 / 73.97 = 19.8729215 * $5.250 * 0.28 = $1,470 / 47.74 = 30.79157889
10,000 = $198,729.215 * 10,000 = $307,917.889

$198,729.215 would be the max Mr. Abdallah $307,917.889 would the max Mr. Abdallah
could go up to on looking for a home. could go up to on looking for a home.
 Renting Versus Buying
Renting Pros- Renting Cons- Buying Pros- Buying Cons-
● Mr. Abdallah would ● Missing the ● Home value can ● Property taxes
be able to save experience of increase over the are quite
money to buy a becoming a year. expensive.
● Becoming a ● Anything such
better home. homeowner.
homeowner. as maintenance
● Renter insurance ● Not able to ● Able to cost come out
are fairly less renovate/remo renovate/remodel of your own
expensive than del while the property since pocket.
homeowners renting. you are the ● A chance of
insurance. ● Sometimes not “landlord”. when selling the
● Don’t have to worry able to get property will
able down deposit back. have to sell
lower than
payments or
purchased for.
property taxes.
 Palladio
360 S 200 W, Salt Lake City, UT 84101
Rent w/utilities: $799/month
Bed: 1 Bath:1 Sqft: 760

Pros Cons
● Fitness center ● Will be renting
● Parking garage and not owning
● Renovated property.
● Affordable price ● Only has one
● Pet friendly bedroom.
● Not that private.
 330 E 4500 S Apt# 8
Sale price: $129,000
Beds:2 Bath: 1 Sqft: 942 Sqft Lot: 436

Pros Cons
● 2 bedrooms ● Apartment
● Ownership ● No garage
● Apartment ● Street parking
● remodeled/renovated

15yr. Fixed 30yr. Fixed

Interest: 4% Interest: 4%
20% downpayment: 20% downpayment:
$25,980 $25,980
Monthly cost: $1,104+$200 Monthly cost: $831+$200
(HOA) (HOA)
PITI: $1,095.85 PITI: $755.16
 1135 S Concord St W, Salt Lake CIty, UT 84104
Sale price: $165,000
Beds: 2 Bath: 1 Sqft: 900 Sqft Lot: 7,841

Pros Cons
● Single family home ● Built in 1948
● Garage ● Older property
● 2 bedrooms ● Old appliances
● Great location

15yr. Fixed 30yr. Fixed

Interest: 4% Interest: 4%
20% downpayment: $33,000 20% downpayment: $33,000
Monthly cost: $1,704+$200 Monthly cost: $1,358+$200
(HOA) (HOA)
PITI: $2,653.48 PITI: $1,917.73
 919 W Hampton Dr, Murray, UT 84123
Sale price: $199,950
Beds: 3 Baths: 2 Sqft: 1,452 Sqft Lot: 436

Pros Cons
● 3 bedrooms ● Location
● Master bedroom ● Yardwork
● Vaulted ceilings ● Not that close to
stores.
15yr. Fixed 30yr. Fixed
Interest: 4% Interest: 4%
Home price: $198,000 20% downpayment:
20% downpayment: $39,990
$49,500 Monthly cost: $1,270+$300
Monthly cost: $1,531+$300 (HOA)
(HOA) PITI: $1,891.59
PITI: $2,662.58
 Final Decision...
The option that Mr. Abdallah has chosen was
option # 1 which, is renting. He has found that it would
save him money were as Mr. Abdallah could later buy a
home in the future.
Long-term Goals He will now begin to save more
money since his monthly payments
Saving- Rent $799.00
have decreased and now he will be
Car Insurance $450.00 able to have $3,498.50 left over after
By deciding to rent instead of paying for his bills. If he was able to
buying a property our client Renter’s Insurance $12.50 save around $1,500 each month for
would be able to save money. the next 3 years he would be able to
Student Loans $150.00
Since, option 1 is quite cheaper save enough to have the down
Transportation $40.00 payment for house option 4.
than his previous home he will
$1,500*36= $54,000 which he would
be able to save more money Food $300.00 be able to chose the 15yr fixed rate
than before. option.
Total Cost $1,751.50