Week 7 CheckPoint_A New House-Economy

Week 7 CheckPoint_A New House-Economy - financially stable...

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Week 7 CheckPoint: A New House-Economy Purchasing a home is a huge decision, whether in a flourishing economy or in a recession and requires a considerable amount of thinking and planning. There are many factors to consider before making such an important decision. In today’s economy with major signs of a recession, high unemployment rates, and low income one should really examine the benefits and non- benefits of buying a new home. It is true that in a down economy one could come across a very good deal on an investment for the future. However; one should also make sure that they are financially stable enough to make that large purchase because it could end up costing them money in the long run. On the other side of that when the economy is good houses are usually more expensive, because more people are willing to purchase homes because they themselves are
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Unformatted text preview: financially stable and able to make those kind of large purchases. In an economic down turn people do not want to borrow funds they are not sure they can pay back and take the chance of losing their home. If taxes on mortgage interest are reduced, the demand for houses would in turn be reduced. This is partly because consumers feel they will not have any benefit from purchasing a home as they did during better times when taxes were higher. Therefore; government spending and tax increases would affect a decision of someone wanting or considering a home purchase. Increasing taxes means eventually lower income families would end up paying more taxes and the result would be less of a demand in the housing market. People would be more cautious with larger purchases or would not be able to afford such a large purchase....
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