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Unformatted text preview: own that property. There are definitely tradeoffs and benefits that should be carefully considered. Another factor to consider is current market price for homes. You would not want to buy a home if you know the prices will soon go down, if you know they are going down it might be better to wait. Another important principle to consider when purchasing a home is rational people think at the margin. You must consider the marginal benefits that could be gained by buying a house. Included in the marginal cost is the down payment, closing cost, moving costs, etc. In the long run once the house has been paid off and the value has increased these factors far outweigh the marginal cost. So, because of all of these principles it really would be a smarter decision to purchase a home rather than rent a larger apartment....
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This note was uploaded on 02/28/2012 for the course ECONOMICS XECO 212 taught by Professor Tsilis during the Spring '09 term at University of Phoenix.
- Spring '09