Monday, April 9, 2018

Instructions for Component 2 of AQR Final Project

Page 1--Large Costs: Housing

a) Choose the type of home in which you’d like to live. A condominium is a type of housing that usually larger than an apartment but smaller than a home. Like an apartment, in a condominium you’d live right next to or close to your neighbors.

b) Think about buying and renting in terms of how long your plan to live in that housing. Make sure you discuss which option (buying or renting) is better in the long/short run in your response and why.

c) If you chose....

Renting, go to www.zillow.com. Above the search bar, click “Rent.” Type in the city or zip code name of the area in which you’d like to live and click “Search.” Many results will pop up. To narrow your search, you can click on “home type” and select if you just want to see apartments or houses or condominiums. You can also use the “price” option to filter certain price ranges. When you find the place you’d like to rent from, write the square footage of the home and include information about the home’s amenities, such as what appliances it has, what kind of flooring it has (carpet or hardwood), if it has a backyard, if it has a balcony or deck, and what kind of countertops it has (wood, granite, marble, etc.). You don’t have to list every amenity, just try to give a sense of what the housing comes with. Provide the link to the home where it says “link to listing.”

Buying, go to www.zillow.com.  Above the search bar, click “Buy.” Type in the city or zip code name of the area in which you’d like to live and click “Search.” Many results will pop up. To narrow your search, you can click on “home type” and select if you just want to see apartments or houses or condominiums. You can also use the “price” option to filter certain price ranges. When you find the place you’d like to buy, write the square footage of the home and include information about the home’s amenities, such as what appliances it has, what kind of flooring it has (carpet or hardwood), if it has a backyard, if it has a balcony or deck, and what kind of countertops it has (wood, granite, marble, etc.). You don’t have to list every amenity, just try to give a sense of what the housing comes with. Provide the link to the home where it says “link to listing.”

d) If you chose renting, write the rent price per month. If you chose buying, write the full price of the home and the mortgage payments per month. For expected price of utilities, go to www.texasrealitycheck.com. Click on “Quick View Calculator” and select the city in which you want to live. On the next page, scroll down to find the utilities section and write down the estimated cost of utilities per month for the package of utilities you’d like.

Page 2--Large Costs: Transportation

a) Choose if you'd like to transport by car or public transportation. Keep in mind the area in which you'll be living at age 25 and if public transportation will be available.

b) Only answer this question if you chose ‘car’ in part (a). When answering this question, keep in mind how much value cars lose over time (and if they lose more value at the beginning of their lifetimes or towards the end).

c) If you chose....

Public transportation: Use Google to research what kind of public transportation is available in the area in which you'll be living. Then, use Google to find the price of a monthly public transportation pass (that could be a bus pass, a subway pass, shuttle pass, etc. depending on what type of public transportation you want to take). Make sure to cite the specific link from which you got the price under "sources."

Car: Use www.autotrader.com to research a specific car for sale you may want to buy. Make sure to put the zip code of the home you selected in the previous part before clicking “search.” When searching, many results will pop up. The menu on the left will let you filter results based on new/used, car age, car price, etc. When you find a car you want, write the link to that car’s sale page next to “Car listing:” under “Sources.” Write down the full price of the car. On the right of the screen, there should be a link with a picture of a calculator that says “Calculate payment.” Click that and write down how much monthly payments would be (in dollars). Write down the make, model, and year of the car. The make is the company (ex: Toyota, Ford). The model is the type of car (ex: Focus, Tundra, Mustang). The year is the year in which the car was made.

To get an estimate for car insurance, please follow this link: https://www.carinsurance.com/city/San-Antonio-auto-insurance-TX.aspx

On the website, scroll down to the part with the heading “San Antonio Car Insurance Rates by Zip Code” Enter the zipcode you will be living in. For age, put 30 (we are rounding up from 25). Put your gender. For the coverage set, I would recommend putting the state minimum liability option, but you can put more coverage if you’d like to feel more secure and have coverage up to $100,000 in damages (note: the more the coverage, the more expensive the insurance). After clicking “search,” the website will show the average annual premium (what you pay per year) for your insurance. Convert this number to a monthly rate, and then write the monthly rate down on your paper. Make sure to cite that insurance web link under “Sources” for insurance. 

To get an estimate for the monthly cost of gas, Google the average price of gas in the city in which you’ll be living. Write this down. Then, Google the miles per gallon of the car you are buying (with the same make, model, and year as your car). Finally, assume you drive 750 miles in a month. Use what you found to calculate the amount of money you’d spend on gas per month. Please show your calculation steps on your paper.