...A New House-Decision Coretta Charles Axia College of University of Phoenix July 3 2010 There are many advantages that come with purchasing a home, but before you take that leap there are many economic condition that one must consider before making that financial decision. In this essay we will look at the market structure, marginal benefit, and marginal cost associated with the purchase of a new home. Purchasing a new home can be an exciting experience that comes with great benefits. The thought of owning your own home and not throwing your money away on renting is a thought that brings a smile to my face, a place where my family and I can call home, and a place where my kids can play on their swing in the backyard and have lots of fun. I would like to look for a house that is close to my work place with a good school system and a location that has ample amount of places to shop. But before I start to look at a preferred location for my new house I have to look at my finances. I have to find a house that is affordable for me, one that fits into my budget as well as have all the benefits that I’m looking for. Though deciding to purchase a home is exciting, it is a huge financial decision and looking at my finances there are something’s I will have to give up or cut down on in order to get the size of the house I need for my family, in the principal of economics this is called “Tradeoff” giving up something to obtain something else of a greater value. Sure, if anyone...
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...Week Nine Final Project A New House - Decision Devin Johnson XECO/212 January 13th, 2013 Jaime Medina Purchasing a home is life changing and a big decision. This is a decision I am currently being faced with at the moment. I have been living in a one bedroom apartment for the last two years, but now it is time for a change. My girlfriend and I are expecting our baby to arrive this June. This of course will require a bigger space and moving into a bigger apartment is not an option. A lot of people believe buying a home is finding the home you fall in love with, have a good credit score, and save money to put down on the house. In reality a lot more needs to be considered when purchasing a new home. The principles of economics are something people should consider because it gives food for thought. I think all ten principles of economics are important and beneficial when making the decision of purchasing a home. I have printed them out as a reminder of what to keep in mind when purchasing a home. The first principle people face trade-offs is one that will impact my decision. For the last four years I had been working a full and part time job. The last two years I have been in school and as class got tougher it required more time for education. In 2012 I had to stop working my part time job to focus on school which has the overall greater impact. Towards the middle of the year my company promoted me to a higher level. My progress in school helped me to get my...
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...Michelle Corniciuc | A New House | Decision | 9/30/2012 | It is always a better idea to purchase your own home rather than pay for someone else’s with your rent payments. Owning an asset in the long run is better than a lease. There are many variables to consider before making your final decision. We as Americans find home ownership to be a valuable goal. Even this year’s national elections are using real estate as one of the most important issues. So, the decision to purchase a home is based on our country’s economy as well as your own. Of course the location of the real estate is a factor as well as the size of the lot and the condition of the building. What would you be willing to trade off or give up for the privilege of being the owner of your own home? What do you get in return for these tradeoffs? Now you must use the principles of economics to figure out some of the answers to your questions. You may have to use what you have available in savings to make a down payment and you may have to work more hours to afford your payments. In the long run you are placing all of those finances back into a type of savings for yourself and your family. These are only marginal changes that you will have to make. They are only small incremental adjustments that would be made to an original plan of action. Some people may find purchasing a new home a frightening experience. Spending your savings, moving into a new neighborhood, can be scary. You must take a look at your...
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...When it comes to buying a house the economy is the first issue that one would take in to consideration. Due to the fact that if the economy is bad then it may not be the best investment to take or if the economy is doing well it would be the best road to take. The marginal benefits and cost on the decision to purchase a home would have to consider the changes that might happen in one’s life style. The two elements will play a huge role in buying a new home one would still have to keep in mind the upkeep, insurance, interest and principal of the new home. It would also be based on where the home is located and the property that comes with it if any at all. One would want it to be close to the school that children would be going to if that was the case. All of these things would be considered the marginal cost. The benefits would be making sure that the economy is healthy and the wages will make up the expenses of the new home. The removal of the tax interest would affect the housing market by reducing the rates. This would hurt the housing market when it was down but that could be a good thing or a bad thing. It makes people think really hard about whether or not to buy a house when it is low or wait till the prices rise again and that would make it even harder. Most of the deduction only helps the richer people to say, but in any case it will affect the decision of any person. The government goes up on the economy and increases it because the jobs, unemployment and the housing...
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...A New House Decision James Wilkerson XECO/212 Prof. Paul March 11, 2012 A New House Decision Buying a house is a decision that can have major consequences for someone if they buy at the wrong time. Purchasing a home is one of the biggest financial decisions that any one person can make. The strength of the economy can give you good information as to when to buy and when not to buy. Timing can be very beneficial for a buyer and understanding how to make the decision when to buy can have long term financial consequences for the buyer. In this case the buyer is me. When making a decision to buy a new house I will look at the principles people face tradeoffs, the price of something is what you give up to get it, rational people think at the margin, and people respond to incentives. While I want to buy a new house there are several different areas that I will look at before making the purchase. How much each home costs plays a role in my decision. It is important for me to live within my means of money so making the right choice will benefit me the most. Looking at new homes there may be two that are different in space, number of bedrooms, and price. I personally am looking for the most amount of space for the price that I can afford. I currently own the house that I have now and in order for me to buy it will have to be beneficial for me to give up what I have at the moment. I face tradeoffs of buying a new house verses...
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...A New House - Decision XECO/212 May 15, 2011 Don MacLean Axia College of University of Phoenix Much thought should be given and taken into account on whether to purchase a home. The decision to buy a home is a very big and important step that should be entered into very carefully. A new home purchase is one of the most significant decisions people will make in their lifetime. There are many factors that can affect one’s overall decision to buy a home. When people consider making the jump from renting to owning, sometimes they mistakenly consider only the cost of the rent versus the cost of the mortgage payment. Unfortunately, some people make the decision to buy a home without considering these factors. In order to determine how much housing I can afford, I must factor in many things such as location suitable for raising a child, savings, other debts, personal preference, and income. Therefore, I have decided to purchase a home and will apply some of the ten principles of economics to ensure I’m making the right decisions along the way. Utilizing some of the ten principles of economics such as people face trade-offs, the cost of something is what you give up to get it, and people respond to incentives will help shape my decision so the home buying experience can be a thought out process altogether. Other essential factors that must be included are the marginal benefits and marginal costs associated with buying a home. Purchasing...
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...New House Decision Your name Class Date Instructor New House Decision A significant amount of time for consideration and evaluations is a must when making a major purchase such as buying a new home. It is vital to properly review all economic and financial standings regardless of whether they are national or individual when thinking about purchasing a new home. The economy plays a major role in deciding whether or not to purchase a new home. A key role is played by the economy when it comes to purchasing a new home. The key principles of economics prove to be rather helpful to a new home buyer when acknowledging and comprehending the many aspects of the new purchase. Nicolas Gregory Mankiw, a Ukrainian-American macroeconomist who proved to be a rather influential source of American finances, originated the ten principles of economics. His principles are based on decision making as the essence of economy. By following the measure, these principles can increase the profitability while managing individual needs. When making a large financial decision, the basic principles of economics along with my relative needs must closely assess. Comparing marginal costs with marginal benefits while weighing out the disadvantages and advantages of the purchase is included in this process. While the search for a new home continues, a couple of key principles will be used by me when considering my purchase. "Tradeoffs" is the first principle; in economics, a tradeoff means the willingness...
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...A New House Decision Economics 212 November 27, 2011 A New House Decision When considering the purchase of a new home, there are many considerations that must be taken into account. One must look at the reasoning for considering such a large purchase, decide on the timing, what lifestyle changes must take place, and finding a demographic are which will enhance all of these decisions. Take for example that a new baby is on the way and the present living conditions are not acceptable for raising a child. There are no schools nearby, no local pediatricians, supermarkets are scarce, and an apartment is just seems too small for all of the extra staples needed when a newborn arrives. This is one of the life changes in which one must take into account every consideration and great care in choosing whether or not to move, what the pros and cons will be and how to prepare financially for a move. Economics is defined as “a social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services (Mirriam-Webster Online, 2011), and economics greatly affects daily living. There are 10 principles that economists follow and can associate with daily living and financial changes on a small or large scale, and which can help to predict future trends in currency, unemployment, and housing. The 10principles of economics is also a good guide to follow when trouble-shooting personal, financial, and moral decisions to be successful...
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...| A New House-Decision | Heather Chuan | | AXIA College | 11/27/2011 | | A home purchase is an important decision that a person can make in his or her lives. It is a place for the principles of economics to take into account to yield a decision that is profitable. The process requires a comparison of the marginal costs and the marginal benefits. It also requires that a person weigh out the own personal disadvantages and advantages related to this decision. I would take my family’s needs into consideration during this process in my life. There are five principles that is an appropriate to guiding a home purchase. The first of these is the principle “People Face Trade-offs”. People have to make choices if they are going to pay for a new home. The second principle is “The Cost of Something is What You Give Up to Get It”. The third principle that I believe is relevant here is “Rational People Think at the Margin”. There are marginal changes that we have to make to reach a successful action plan in this situation (Mankiw, 2007). The final two principles that apply are “People Respond to Incentives” and “Trade Can Make Everyone Better Off”. I would want to consider price of the biggest element in my decision for a new home purchase. I want to remain within my own planned budget when I make this decision. I will not consider that I have a demand for a house outside my given price range, so I will look for a home that meets my budget needs as well as meets my other...
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...A New House - Decision Your Name XECO/212 Your Date Your Teacher A New House - Decision We are currently renting a studio apartment and have just discovered that we are having a baby. Our present apartment is small and far away from schools and local services but is a close commute to our respective jobs. We have decided to move to a home with at least three bedrooms that is in a good school location as well as close to our respective jobs and we are planning on doing research before we decide whether to purchase a new home. We know purchasing a new home requires a substantial financial outlay and making the wrong decision has long-term financial consequences. We have just started looking around for a three or four bedroom houses located in good school districts with a close work commute for us. We are including the following research to help us decide if we should purchase a new home: • We will discuss which principles of economics directly relate to our decision. • We will compare the marginal benefits and the marginal costs associated with our purchasing decision. • We will see how the strength of the economy as a whole affects the marginal benefits and the marginal costs associated with our decision. • We will look at the roles of the domestic economy and international trade in our assessment of the strength of the economy. • We will determine what situations or conditions could have led us to make a different decision. The following principles of the...
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...A New House Decision Alycia Toth XECO/212 Professor Tsilis Purchasing a home is not only one of the most important decisions but it is also one of the biggest decisions a person can make in their life. There are so many factors that come into play when making that final decision. Before you can make a final decision on which home to purchase you have to make the decision to buy a home. My husband and I have accepted the challenge of making the final decision on whether to purchase a home or continue renting. First we sat down and made a list of all the things we needed to consider before jumping into purchasing a home. The next step we took was to make a list of pros and cons for our current renting situation and for making the choice to purchase a home. From there meeting with a relator and then a mortgage consultant would be our next step. We would like to share our process with you and why we made the decision we did. One of the first things to consider, other than your budget, is to look at Mankiw’s Economic Principles. Within the ten principles you will find how relating those to your purchase can help you in your decision. We chose to focus on the first and second principle because I felt those were the best principles that settled in on what we needed to put into perspective when making the decision. The first principle discusses trade- offs. For example, my family and I currently live in an apartment so if something breaks all we have to do is make a call to the...
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...A New House- Decision Deanna L. Boss University of Phoenix Professor Jill Trask August 8, 2010 A New House- Decision As they are growing up, almost every little girl dreams of getting married, buying a home with a white picket fence, and then having a family of their own. Well, I did get married and we just found out we are going to have a baby, however, we do not have a house with a white picket fence, we have a studio apartment, which is barely big enough for the two of us, let alone a baby. Therefore, it is time we start thinking about getting a bigger place. But, first we need to think about possible locations we would like to move to. Since our current apartment is far from any services that we need now and that we will need in the future, such as churches, doctors’ offices, hospitals, child care providers, daycare centers, and schools. Once we have found the right area, we then need to take the time to think about and discuss our options of whether we want to rent first to save up money for a down payment or if we feel it is in our best interest to look into buying our home now. This is one of the biggest and most important decisions we will make in our lives, besides getting married and having children, because when you buy a home there is not just the substantial amount of money that is needed as a down payment, but there are other expenses that go along with home ownership. Aside from the financial aspect that figures into our decision, there are several...
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...Final Project Week 9 A New House – Decision By Barbara Rosol Due, Sunday, April 14, 2013 XECO/212 - Terry R. Blankenship, MBA, CBB Wanting to be a home owner is a very scary, unknowing and risky venture unless you have the right tools and the proper knowledge to make it a smooth transition and one you will be committed to for many years to come. This happened to me when I was young and thought it was time to move out of a small space I was renting. The choices that best describe my decision to purchase a new home would be based on the following principles. I could not imagine starting over again but I do know that by following the 10 principles of economics and analyze the markets for home purchases, you will see how easy it is to measure the benefits versus the costs. For me just starting a family and having little money to start, the best we could do is look for a home within our means. We rented a small 2 bedroom apartment with no garage and it was miles from schools and local grocery stores. We needed to raise our children in something nicer and with lots of yard space for the children to safely play. But how do we do it? We here the interest rates for mortgages are great now but the market price where I want to live must be in my budget and in a decent neighborhood, free of crime and must be close to grocery stores. I would need to seek the help from a bank that can finance and pre approve a loan for me so a realtor can start showing me my options...
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...Introduction There are many factors that affect the decision to purchase a home besides the American Dream. For most people, having a stable income is not sufficient enough to make a purchase of a home. There are economical factors that can play a detrimental role where making the wrong decision can become costly. Such factors include some of the ten principles of economics and the strength of the economy as a whole. All of these factors play a role in which I decide if buying a home is in my best interest. There are ten principles of economics; these principles are based on the ways that people make decisions, how people interact, and how the economy works as a whole. In deciding to purchase a home, the principals that weigh on my decisions are: facing trade offs, the cost of something is what you give up to get it, rational people think at the margin, markets are usually a good way to organize economic activity, and a country’s standard of living depends on its ability to produce goods and services. The trade off to owning a home is expense. Owning a home is more expensive than renting a home. This is because the owner pays for all repairs, maintenance, and upkeep. The owner also pays for all utilities. When renting a home, since the owner pays the cost of repairs, maintenance, upkeep and some utilities, the renter does not have to come out of pocket for these costs. Along with owning a home comes property taxes, which in my...
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...Buying a house is such a stressful process and I know that I am not going to go through this process again and while pregnant as well. Currently I live in an apartment and with the babies clothing I have to move somewhere else. So we’ve determined that we are going to buy a house. I think that out of the 10 principles I can see myself fitting into each one of those principles. However, the one that would fit me is the “People Face Trade-offs.” I am living in an apartment now so I would have to say that while I am spending all of this money renting, there is a possibility that I could be spending less money on paying a mortgage that I could call my own one day. An example of decision making are the cost of something is what you give up to get it. I know a lot of things you have to work hard to get them. When my fiancé was in college I would have to work hard in order to provide for my child that we had together. I was in Virginia and he was in Ohio. So in order to make sure that my son was fed I would have to not pay the gas bill or the cable bill. It’s nothing like running out of money but knowing that it is going to help you in the long run when taking care of important things. Another example of working of the economy is when the government prints too much money. Inflation increases the prices in the economy. This is what we are experiencing now. Even though the housing market has gone down the cost to buy something new has gone up. Prime example would be a gallon of milk...
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