Question

John would like to move from the suburbs into the city, but the rent in the city is very high. John has found an apartment he really likes, but he can only afford about 60% of the monthly rent. What is the best housing option for John?

Answer 1

A list of multiple choices is given;

a)      Purchase a home in the city center instead.

b)      Rent the apartment anyway.

c)       Rent the apartment with a roommate.

d)      Purchase a home in the suburbs instead.

The answer is (C)

John should look for an apartment and share it with a roommate. This will bring down rent expenses to 50% as both John and the roommate will be cost sharing the rent. If the rent expenses go down by 50%, he’ll be able to save an additional 10% and use it for other expenses.