A New House XEoc - If I were examining the benefits and...

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If I were examining the benefits and drawbacks of purchasing a home, I would use some of the ten principles of economics. The desire to move to a more spacious home due to pregnancy is certainly a motivating factor but financial decisions must be made from an objective point of view. The first principle is that people face trade-offs. This means that no one can get something without giving up something else. To move from a smaller apartment to a large house is a trade off in terms of mortgage payments. Typically, a mortgage is more expensive than a rent payment so that is a major consideration. Can the mortgage be afforded along with the yard care and home care of things such as appliances which would otherwise fall on the rental company to repair? The second principle I would use is actually the thirds principle of economics. This states that rational people think at the margin. Surely, buying a house as opposed to dealing with a smaller apartment or simply moving to a larger apartment would be unwise in terms of monthly
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