ECO212 Final Project

ECO212 Final Project - New Home Purchase - Page |1...

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N e w H o m e P u r c h a s e - P a g e | 1 Purchasing a New Home XECO 212 Axia College Zac Worley August 22, 2010
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N e w H o m e P u r c h a s e - P a g e | 2 When comes to the decision to buy a home there are a lot factors that I will have to consider especially the ten principles of economics. I think the first four principles are going to be the biggest factors if I’m going to buy this home for example people face tradeoffs one of the principles if I’m going to purchase this home I’m going to have figure out what I can’t buy or can’t do because I’m going to buy this home. I will have to give up a lot of my free money and time because of the cost of the home I’m purchasing. Plus not only I will have pay for the house and upkeep of I will also have to pay for the taxes and I will have to give up a lot of my free time for the upkeep and maintenance of the house. These are all huge factors on purchasing this home. Another principle that I will have put into consideration is that what are going to be the incentives of purchasing this home. I need know if I will actually make money from this house or is this house I want to live in for the rest of my life. These are all big factors that I will have to figure out if I’m going to buy or not buy this house. I will have to understand the marginal cost and marginal benefit of the house that I’m going to purchase. The marginal cost is going to be the initial cost of the home and what money I will need to put into the home when I buy it. For example I might find a home that is in a perfect location and it has almost everything that I’m looking for, but the house might need some sort of major repair like replacing a roof or something like that. Than I would have to figure out how much money that I would have to have to get the home and is it worth it to purchase the home. Also I will have to understand the marginal benefit of all the homes that I’m interested in. Because if there are two homes that are close to what I’m looking for and are in the similar location that I would want to live in then I would want to buy the cheaper one. Because then the benefit would be a lot better and I could get a better return on my investment because the initial cost would be so much lower. The strength of the economy will definitely affect the marginal cost and marginal benefit of the
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This note was uploaded on 08/21/2011 for the course BUS 101 taught by Professor Doe during the Spring '10 term at University of Phoenix.

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ECO212 Final Project - New Home Purchase - Page |1...

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