Filice_A_XECO_FINAL_9

Filice_A_XECO_FINAL_9 - A New House and Economic Decisions...

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A New House and Economic Decisions Anthony Filice November 13, 2011 XECO 212 Yvonne Shivers Abstract I don’t know about most of the other people, but I do know that I have been looking into buying a house for a long time. I am a very picky person and want something with potential, whereas most people I know want a turn-key move in ready home. Believe it or not that
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2 A New House and Economic Decisions. decision is based partly on the economy. Economics is a big part of buying a home, actually, it is a big part on any major purchase. Unless you are rolling in cash, the average American needs to make sure that their decision to make such a big purchase will actually benefit them and not hurt them, financially or economically. I have seen and read about all sorts of people getting in over their head in major purchases, getting their homes foreclosed on, cars repossessed, or even going bankrupt. The following will outline my decision on buying a home, not hypothetically, but literally. A New House and Economic Decisions Buying a house is a major commitment that not all people are ready for, and they don’t realize this when they start looking into buying a house. When I started looking I knew little about the process and the potential issues that you may face in the future. After shopping around for a year I had learned a lot, about real
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3 A New House and Economic Decisions. estate processes, foreclosures, short sales, financial liability and commitment, among a myriad of other information. I honestly thought that this might give me an advantage when writing this paper but it isn’t as easy as I thought. Principles of Economics Essentially, 10 out of 10 of the principles of economics can be related to purchasing a house in some way or another. I am going to start with principle number one, people facing trade-offs, which in my opinion is one of the most important things to think about. The biggest trade-off that you will encounter in the decision making process is that of renting versus owning your home. Most people believe that owning is always the better route but that is not always true. There are several things to think about with this like, are you planning on living there forever, fixing and flipping the house, will it be a rental, can you handle the responsibility of all of potential things that could happen. I am personally the type of person that would never sell a house after I buy it, I would rather rent them out, because land and real estate are some of the best long term
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This note was uploaded on 12/18/2011 for the course XECCO 212 taught by Professor Walker during the Winter '11 term at University of Phoenix.

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Filice_A_XECO_FINAL_9 - A New House and Economic Decisions...

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