xeco212.FinalProject. - A New House-Decision 1 Running...

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A New House-Decision 1 Running head: A New House-Decision A New House-Decision Axia College
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A New House-Decision 2 The decision of purchasing a new home is not only a big commitment but a huge financial decision as well. When deciding to purchase a new home, there are many decisions, goals and plans that have to be evaluated with the considerations of the economy, housing market, current financial, and job stability. There is also other factors that have to be considered when deciding to purchase a home. The factors would include the marginal benefits, marginal costs, and the current state of the economy to include domestic and international trade. I think that when deciding to purchase a new house, the principle of economics is a huge of help. Another help is asking yourself logical and realistic questions. What tradeoffs will I need to make in order to accomplish the goal of buying a new house? What will my family and I be giving up? Can we afford it? Is my job stable? These are questions that are very important when deciding to purchase a new home. Other important issues would be location, financial budget, and size of the home that you need for your family. I think that all 10 principles of economics affect the decision to purchase a new home. Purchasing a new home is a huge decision and one needs to be smart about it at the same time. Going out to buy a house just because you want it is not that easy, unless you are rich and can afford it. The principles of economics I think were created to assist people to make the right choices for themselves, their families as well as understanding their choice. Because purchasing a home is a big decision, the pros and cons needs to be acknowledge immediately. The marginal benefits are that owning your own home is an investment, which will build equity. Owning your own home is probably the best benefit. You are able to design it how you want and it is a place where you will raise your family and plant your roots. Another one is that instead of paying the rental owners mortgage, you will be paying your own mortgage for your own home. Another benefit would be the $8000 tax credit you can receive, but you must close on the house by 30 September, which has expired. The marginal costs would be the financial part of purchasing a home. There is the actual price for the home, the mortgage rate, insurance, property taxes, and if any maintenance or association fees. I think that marginal cost was created to break down all the financial part of purchasing a home, which can be very helpful when you are on a set budget. The marginal costs could also reflect the
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xeco212.FinalProject. - A New House-Decision 1 Running...

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