Preview

Purchasing a New Home

Satisfactory Essays
Open Document
Open Document
381 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Purchasing a New Home
CheckPoint: A New House—Readiness
The economic principle declaring trade as a social equalizer is a main consideration in my decision. The saying is about purchasing a new home. In this case, I find that the cost is exceeded by marginal advantages. This tells that purchasing the home would be the best choice. Inflation after purchase would show the house in value and this is also a good push towards this decision. But if the house price is inflated now because of the economic climate, it would be a bad choice to purchase now. With that, it would be best to wait for the market to go back to normal and then buy a house once prices have become balanced.
The investment that it takes for a home purchase makes the thoughts of all factors important in coming to a successful conclusion. The trade off that has to be considered in the cost of moving with the cost of staying where you are without the advantages of ownership. The new home gives better access to the schools where the kids are going to. This is an automatic thought of less gas usage. This will also help people who have busy schedules as it would cut down the amount of time needed to finish things. The trade off being considered is whether the advantages outweigh the cost of the house purchase and what the outcome will be. There is also a cost that is reduced for the purchase of other goods and for other maintenance costs when you are making such a big financial investment.
The high cost is a payment that happens one time and the studio costs will go on for a longer time without realizing any important financial benefit. Rent for living in the studio is a recurring cost, (of course), which cannot be set off by tax benefits or the benefits of ownership. The gas for your car and time saving system might not throw out the thoughts of putting up with increased gas for your vehicle and time costs in the current studio. When the marginal benefits are greater than the marginal costs, then the best course of action

You May Also Find These Documents Helpful

  • Satisfactory Essays

    GDP11 Unit10 Rep046 13 S

    • 303 Words
    • 2 Pages

    Buying a home is a process that many of us will go through in our lifetime. If we are like many other prospective buyers, we will experience this major decision three or four times in our working years. A home is often the largest purchase we will make, and it therefore deserves our careful attention.…

    • 303 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Look at your take-home pay and living costs—and how those numbers will change when you move into a home. Even when you factor in the mortgage deduction you'll be able to claim on your taxes, in some areas renting may still be more economical than buying. Personal factors such as your age, family size, health, and career help you to answer some of the following key…

    • 836 Words
    • 4 Pages
    Better Essays
  • Good Essays

    The market equilibration process explains what occurs when consumers and sellers make decisions in an efficient market (McConnell, Brue, & Flynn, 2009). Buyers and sellers own most of the resources in the market and compete to obtain what they want. The efficient markets theory speculates that buyers and sellers are on an even playing field when trading assets and no one has an advantage over the other to make a profit based on analysis and prediction (Efficient markets hypothesis, 2012). Possessing an understanding of economic principles is necessary for entrepreneurs when making essential business decisions. The objective of this paper is to clarify the market equilibration process and establish how it relates to the rise and fall of house prices.…

    • 601 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    LTC 315 Week 4 DQ 2

    • 597 Words
    • 4 Pages

    Demographics, beliefs, finances, independence, and many other factors may affect an individual’s or couple’s options for living environments.…

    • 597 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    There are many different government bodies that can influence the national fiscal policy; but the three I feel are most important are the Federal Reserve System, the Legislative, and the Executive branches. The Fed controls the interest rate which in turn controls the mortgage rate which makes a difference on how much money you have to pay the bank back extra after paying back what was borrowed to purchase the house. The Federal Reserve changing the interest rate also affects the price of the homes for sale as well. The legislative branch makes the rules, regulations, and polices that control the housing department and how strict or lenient the market will be. The executive branch has the power to veto anything that the legislative branch tries to pass so they are the balance to the system.…

    • 321 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The housing market changes quite frequently and depending on the city, state, and neighborhood. When a home-buyer is interested in purchasing a home they look for what fits their needs, life style, and budget. This is important because it will also determine what type of house they can afford to live in and how much they can get for the amount their budget will allow. Buyers and sellers will look for certain variables when purchasing or selling a home and data must be gathered to make sure that all details match and that all requirements are met. It would be safe to assume that our theory that the larger the house and the more rooms a house has, the more expensive the price of the house will be. The three major variables in our data summary are: number of bedrooms, size of the house, and number of baths.…

    • 416 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The U.S. consisted of natural resources that would become the driving force for the thriving economy. The central idea of the post-Civil War era of corporations was the dependence on raw materials from around the world and sold goods in global markets. The rising economy was beginning to influence future infrastructure of the growing United States before the Civil War. Also, the politics was a huge part of the disputes of the big businesses that would later be the main reason corporations grew. The U.S. entered a “new economy” which increased in number, size, and influence on big business on politics between the period of 1970-1900 that led to rapid increase in American changes in the economy.…

    • 487 Words
    • 2 Pages
    Good Essays
  • Better Essays

    First Time Homebuyers

    • 978 Words
    • 4 Pages

    There is always the common question what does it take to get a first time home buyers loan? And the answer is there is so much that goes into the process of getting a home loan. You have to find out if there is a down payment and what percentage the seller wants for a down payment. Is the seller going to pay the closing costs or does that come out of your pocket? All these questions and more are what go into getting a home loan.…

    • 978 Words
    • 4 Pages
    Better Essays
  • Better Essays

    Final Project

    • 1941 Words
    • 8 Pages

    In order for a consumer to decide whether or not now is the time to purchase a new home, there are 10 basic principles of economics that we can follow. By learning and realizing these principles, you will have the ability to make one of the largest investments that a consumer could make in a lifetime. Even though all of these principles relate to the decision of purchasing a new home, there are some that have a direct impact and influence on an investment this large. The first principle that should be considered is that people face trade-offs. In order for someone to get something they want they usually have to give up something else. If purchasing a new home seems to be the decision that is best for the consumer, they may have to give up things such as family vacations and excessive spending on clothing or food. All factors of a trade-off could be considered by looking at the pros and cons of each situation. For instance, does more space, private living or the benefit of paying on something you will eventually own justify the cost of added utilities and maintenance of a home. There are other considerations to be taken as well, such as property and house taxes that would not be present in a rental agreement. This is…

    • 1941 Words
    • 8 Pages
    Better Essays
  • Better Essays

    Renting vs Buying

    • 1713 Words
    • 7 Pages

    Picking a place to live is one of the biggest decisions we make in our lives. It is a decision that is not to be taken lightly and must be planned out way in advance. One thing you need to decide is whether you want to buy or rent a home. There are pros and cons of renting and buying a home; and you need to be able to decide logically what is going to work best for you.…

    • 1713 Words
    • 7 Pages
    Better Essays
  • Satisfactory Essays

    Home Buying Process

    • 412 Words
    • 2 Pages

    At this point you have a budget and have started saving for your down payment. You have checked for credit report and score and researched which type of mortgage works best for your financial situation. The fourth step is to get preapproved from a mortgage lender. You obtain preapproval by working with a lender to figure out whether you are qualified for the type of loan that you want and how much the lender is willing to give you. This step is very significant because it will give you the confirmation of the final budget you can afford so you can begin shopping for your perfect home.…

    • 412 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Mgt/230 Week 1

    • 1008 Words
    • 5 Pages

    As a mother you want to make the best decisions for your children. In my case I always want to make the best decision for my child. I have a 10 year old amazingly wonderful young man, who is polite, helpful, a straight “A” student, and also the most important reason I began to weigh the option of moving. I moved into a two bedroom apartment the day after I brought my son home from the hospital which also extended an emotional attachment to “my space”. For ten years this was the place we called home. My son attended the same elementary school that I attended as a child, and was able to grow up and play in my parents’ neighborhood which is only a short distance away. While the apartment had its perks there were also many reasons that a move may be necessary.…

    • 1008 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    The benefit of Mr JB owning his own home is he will have his independence, having his own space for him and his family and feel less stress about…

    • 1149 Words
    • 3 Pages
    Powerful Essays
  • Good Essays

    Minimum Wage Job Essay

    • 585 Words
    • 3 Pages

    Moving out would not be the best option for me because I cannot afford to live the lifestyle I prefer on a minimum wage paycheck. I took to Google to look for an apartment suiting my preferences and found the Langham Apartments, located in Los Angeles, on apartmentguide.com. It costs $1015 monthly to rent a 250 square feet studio room. That would only leave me with $378.15 for other expenses. After calculating the bills for my utilities and other services, the total comes out to be $162 for gas, electricity, water, home phone, wi-fi, and cell phone. In the situation involving the Langham Apartments, my rental fee does cover my utility bills for gas, electricity,…

    • 585 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Mgt/230 Week 1 Assignment

    • 826 Words
    • 4 Pages

    Generating and evaluating alternative solutions (steps 2 and 3 in the decision making process) was really not an option for us as we knew exactly what we would have to do if we were to obtain the right place for all of us to live. The only alternative solution in this situation would have been to rent a large piece of property with a larger home and we had come to a point in our lives where purchasing seemed like the better investment.…

    • 826 Words
    • 4 Pages
    Good Essays