1. Housing Options Bryce Hagen Gamal Burhum Vesna Eng Danny Luu Team 11

2. Buy a Used Home or Build a New Home A Comparison Based On Financial Conclusions

3. Scenario  Typical College Graduate  First Time Home Buyer  Southern California Residence  Good Credit  $300,000.00 Budget  5.2% 30 Year Loan  Sell The Home After 10 Years

4. Assumtions  3.45% Inflation  10.0% Real Estate Return  10 year Analysis

5. Used House Location  2408 Ogden St.  San Bernardino, CA

6. Used House Details  3 Bedrooms, 2 Bathrooms  Family Room, Dining Room, Living Room  2 Car Garage  1396 Square Foot House  8700 Square Foot Lot  Built in 1966  $249,900.00

7. New House Lot Location  2620 Kern St  San Bernardino, CA

8. New House Details  1400 Square Foot House  Built in 2004  9330 Square Foot Lot  3 Bedrooms, 2 Bathrooms  Dining Room, Living Room, Family Room  2 car Garage  Lot - $26,500.00

9. Used House Initial Costs  $249,900.00 Purchase Price  $4879.00 Closing Costs  $531.41 Advance Payments  $1540.00 Title Charges  $385.00 Miscellaneous  $257,235.41 Total Initial Cost Sell the Home in 10 Years for $650,000.00

10. New House Costs  $26,500.00 Lot Price  $196,000.00 Const. Costs  $16,800.00 12 Month Rent  $8,826.00 Fees  $5,000.00 Architect  $253,126.00 Total Initial Costs Sell the Home in 10 years for $720,000.00

11. Used Home Maintenance Costs  $1,000 / year Maintenance  $9,500 Year 2,4 Plumbing Cost  $1,500 Year 3, Water Heater  $7,500 Year 1, New Roof

12. New Home Maintenance Costs  $0 for the First 10 Years

13. Present Worth Comparison  - $336,635.89 Total Costs  $277,591.17 PW of Sale  - $59,044.72 PWC New Home  - $370,048.62 Total Costs  $250,603.14 PW of Sale  -$119,445.48 PWC Used Home

14. Sensitivity Analysis  Increased Construction Costs  $110 - $200 Sq Ft

15. Sensitivity Analysis  Change in Used Home Price  $200k – 270k

16. Internet Resources  www.builderonline.com – Home Building Tips and Warnings www.builderonline.com  www.home-building-directory.com – Instructions for Building and Contracting www.home-building-directory.com  www.toolkit.cch.com – Present Worth Analysis www.toolkit.cch.com

17. Buy a Used Home or Build a New Home Any Questions?