Week 1 Checkpoint

When buying a new house you have to take into context all of the principles. You have to ask yourself how the market is for a house, how have living standards changed, is the government improving the market, and etc. Everything plays a factor when buying a house. The one principle that I think is very important is number six. I think one should know the market value for a buying a house and how the cost of living works. Most people tend to think buying a house can be easy, and that’s not true. A lot goes into planning for buying a house. In the current economy that we are in, the cost of living is high and finding an affordable house is very hard. The government isn’t exactly making the market any better either. With the unemployment rate the way it is, it’s hard enough trying to find a job let alone buying a house. Without a steady source of income, one can find buying a house a very hard task to do. Next you have to think about if you’re really ready to give up something else to gain the house that you want. Most people don’t always think rationally and that’s bad. In most cases like this with a house a person might set their self back into debt by buying a house. You may be taking money from other places just to satisfy this one need, when you have other pressing matters. It’s like you giving up your car payments to save for the house, essentially your give up on your car to satisfy another need. Most people aren’t ready to do that. Then again a lot of people look to trade or make deals with others to get what they want. People may trade off a service to ensure that they will be able to get the house at some type of affordable rate. For example a landlord may not charge you rent for x amount of months if you do something for them. Trades like those go down every day of the week because; most people can’t afford things on their own. One thing that bothers me with people buying houses is how they can’t budget their money. People always face tradeoffs in which they must learn to juggle certain things around. You can’t just spend your entire check on clothes and shoes, because then you take away from money needed to be saved to buy the house. In the end you can’t expect someone who’s selling a house to offer you incentives if you can’t hold up your end of the bargain. Most buyers respond better to incentives that are provided by the seller. The seller might offer your first month rent/mortgage free in you pay double your deposit or something of that nature. People always respond well to incentives, it’s like the motivation to do better. In all essence the government can help limit of a lot problems when it comes to buying houses. The market is collapsing and we all have to do a better job in this time of recession. Money needs to be spent properly and changes need to be made. Even though nothing can be guaranteed by the government changes are still needed. In the end a person has to be rational, smart, open minded and focused when preparing to buy a house. You can’t over look anything when it comes to way that you spend your money. Life is short and you don’t want to regret any decision that you have because of not making clear, smart and level headed decisions.