Unformatted text preview: Owner-occupancy as investment-When buying a house, have to consider 2 things: o Is it better to buy or better to rent? o If you have money, should you put it on your house or someplace else?-“t” years depends on total price of house, amount of mortgage (total mortgage), interest, taxes, and so forth) o If you expect to live in the house > t years, then buy. If you expect to live there < t years, then rent. Two fundamental issues of housing:-Enough housing-Affordable housing-What are the policies that ensure these things? o People are encouraged to invest in real estate projects o Houses built in appropriate locations Second major issue: poverty Third major issue: condition of housing (poverty comes into play)- For example, slums (which are in dismal conditions)...
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- Fall '08
- Economics, federal income taxes