xeco212 week 9 final project

xeco212 week 9 final project - My decision is to purchase a...

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My decision is to purchase a new house. Purchasing a new house is a very good investment. With the way the housing market is right now it would be a better investment than renting an apartment that I will never own or have the potential of owning. I would rather buy a house than continue renting an apartment. The benefits of owning a home are far greater than that of renting an apartment. When owning a new home you have the freedom to remodel the house without having to go through a landlord. When owning a new home you also have the freedom to have as many pets as you like. Another benefit of owning a new home is the fact that you do not have to worry about neighbors being too close to hear your music or your television. I think that owning a new home would be a good investment I see nothing except benefits to owning a new home. The principle of economics that relates to me buying a home is people respond to incentives. The reason I say that I can relate to that principle is because with the incentive of an eight thousand dollar tax credit for a first time home buyer is a great incentive. That is also another benefit of buying a new home, since I am a first time home buyer I would qualify for the eight thousand dollar tax credit which is a great benefit to me. The marginal benefit to owning a new home would be, money spent on the mortgage of a new house versus paying monthly rent on a place I will never own. Upfront payment would be the marginal cost but over time it would become a marginal benefit. Spending money on a mortgage would decrease the mortgage and the equity would increase. The marginal benefit would be the earned equity. Purchasing a new home would affect every aspect of my life for several years to come. When purchasing a new home I would look for certain perks for my family such as, where the schools are located and how far from
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This note was uploaded on 02/12/2012 for the course ALL all taught by Professor All during the Spring '10 term at University of Phoenix.

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xeco212 week 9 final project - My decision is to purchase a...

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