Xeco 219 Final Project--a New House Decision
A New House Decision
Karen Taylor
XECO 212
October 17, 2010
Nicholas Kuzmich
New House Decision
The decision to buy a home is a very big and important step and should be entered into very carefully. Home buying is the most important decision that a couple or person will ever make in their lives. With a new baby coming, the studio apartment is going to be too small for a family of 3 to live in and also the apartment being too far from local services and schools, all of these factors that have come into play have played an important part for the decision in buying a home. With the bad situation of the housing market, at this time will also play an important role in deciding to buy a house. Many people will decide on looking to buy a house without looking at the pros and cons. Not doing the work to really see if it will be beneficial to buying a home could sometimes result in making the wrong decision financially. There are a lot of important things to take into consideration when deciding to buy a house or not. Some of the questions that would need to be answered are what are the tradeoffs, what would you have to give up and what will you gain in buying a house, what government programs are there to assist in homeownership, the marginal costs and benefits of purchasing a home, and is the economy strong enough to support buying a home. This type of decision cannot be made in haste because everyone's situation is not alike and each line of questioning applies to everyone. Being careful and taking the time to look at the pros and cons and the ten principles of economics will help with making the correct decision in purchasing a home for my growing family. Utilizing some of the ten principles of economics will apply to help make the decision a lot easier. The first principle of economics that applies to the decision making is the "People Face Trade-Offs." This principle applies because there are needs for an evaluation of all of the costs that
Karen Taylor
XECO 212
October 17, 2010
Nicholas Kuzmich
New House Decision
The decision to buy a home is a very big and important step and should be entered into very carefully. Home buying is the most important decision that a couple or person will ever make in their lives. With a new baby coming, the studio apartment is going to be too small for a family of 3 to live in and also the apartment being too far from local services and schools, all of these factors that have come into play have played an important part for the decision in buying a home. With the bad situation of the housing market, at this time will also play an important role in deciding to buy a house. Many people will decide on looking to buy a house without looking at the pros and cons. Not doing the work to really see if it will be beneficial to buying a home could sometimes result in making the wrong decision financially. There are a lot of important things to take into consideration when deciding to buy a house or not. Some of the questions that would need to be answered are what are the tradeoffs, what would you have to give up and what will you gain in buying a house, what government programs are there to assist in homeownership, the marginal costs and benefits of purchasing a home, and is the economy strong enough to support buying a home. This type of decision cannot be made in haste because everyone's situation is not alike and each line of questioning applies to everyone. Being careful and taking the time to look at the pros and cons and the ten principles of economics will help with making the correct decision in purchasing a home for my growing family. Utilizing some of the ten principles of economics will apply to help make the decision a lot easier. The first principle of economics that applies to the decision making is the "People Face Trade-Offs." This principle applies because there are needs for an evaluation of all of the costs that
References: Mankiw, N. Gregory (Ed.). (). Ten Principles of Economics. [University of Phoenix Custom Edition e-Text]. : . Retrieved October 12, 2010, from XECO212-Principles of Economics. United States Department of the Treasury. (2009). Making Home Affordable. Retrieved from http://www.ustreas.gov/press/releases/reports/guidelines_summary.pdf United States Government. (). American Recovery and Reinvestment Act of 2009. Retrieved from http://www.recovery.gov/Pages/home.aspx