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A New House Readiness - too all money spent on rent is gone...

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Running head: A NEW HOUSE – READINESS 1 A New House – Readiness Darrell Dannelley XECO/212 September 9, 2011 Troy Mahone
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A NEW HOUSE - READINESS 2 A New House - Readiness Buying a house is a big life changing decision. Many of the 10 principles of economics play a role in this decision. Principle number two, “the cost of something is what you give up to get is” plays the biggest part in this decision. When comparing cost and benefits of buying a house over cost and benefits of renting a bigger apartment it makes it easier to make the choice. A house will have more space, able to be personalized, closer to schools, and the possibility of making a profit later in the future. The cost of benefits will be, spending cut down to pay for the increase of mortgage, owner is responsible for repairs, property taxes, and possibility of losing everything and running credit if mortgage payment is not able to be paid. The apartment has cost
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Unformatted text preview: too, all money spent on rent is gone without the possibility of ever making it back, closer neighbors, smaller space. There other factors go in to the decision, current market prices, and time line it will take to find a house and move in. The cost of buying a house could be high because the family may have to give up many extracurricular activities to offset the monthly living increase. What is gained when buying a house is the house will be paid off over years, the value of the house should increase, it is the family own space, and with a set interest rate there is no worrying about the price going up like there would be with renting. There is less given up and more gained from buying a house so in most case if it can be afforded it is a good decision to buy a house. A NEW HOUSE - READINESS 3 Reference Mankiw, N. G. (2007). Principles of Economics (4th ed.). Mason, OH: South-Western Cengage Learning....
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A New House Readiness - too all money spent on rent is gone...

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