...Xeco/212 Page 1 A New House: Readiness Xeco/212 Angela Rogers Due: Friday May 24, 2103 Pamela Hammock Xeco/212 Page 2 I feel that purchasing a new home is one of the biggest decisions a family can be faced with. I know that because of the person that I am the main principle I would use when purchasing a new home is the second one, which was the cost of something is what you give up to get it. However it would be safe to say that a decision this big over a period of time would at some point factor in all 10 of the principles. I feel this way because you never know what the future may hold and if you were to make any mistakes when making this decision it could create all kinds of financial problems. If I were making a decision like this I would have to take several things into consideration. One of the things I would consider is the timing. I would want to take baby steps or so to speak, like building smaller goals and going for those first until I reach the final goal of purchasing the home. I would have to weigh my options as whether to buy a house or renting a bigger apartment would be better than the small studio. Yes we would definitely need something bigger with a baby on the way. Another thing to consider is where you would want to send your child to school especially if you are purchasing a home. You would also have to consider the economy and how the real estate market is holding up. You would not want to buy a house and then the value decrease...
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...Xeco 212 Checkpoint: a New House – Readiness Checkpoint: A New House – Readiness Leonard Sugue University of Phoenix XECO 212 Economic Theory Audra Sherwood February 17, 2011 A New House – Readiness Deciding to buy a house is a lifelong goal for many people. Imagine that you are renting a studio apartment and have just discovered you are having a baby. Your present apartment is small and far from schools and local services. You have decided to move. There are many factors that come into play when making such a large and weighty purchase. Examine the decision-making process from the perspective of an economist. In your Final Project, you use these principles and other factors to make a final decision whether to buy a house. Purchasing a home for the first time can be overwhelming. A house can be the largest investment someone makes. It can provide advantages, but it can present disadvantages as well. The following principles can be used when deciding to purchase your first home: People Face Trade-offs (Mankiw, 2007) The Cost of Something Is What You Give Up to Get It (Mankiw, 2007) When deciding to purchase a home, the principle “People Face Trade-offs” can be applied to help make a final decision. Making decisions requires trading off one goal against another (Mankiw, 2007). The buyer must sacrifice a little to gain a lot. First time home buyers must realize that it takes a lot of money to purchase a home. Buyers must sacrifice...
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...Benefits Delta Darr XECO/212 October 30, 2011 Don Mac Lean A New House- Risks and Benefits Some of the government bodies that influence national fiscal policies that potentially affect the housing market are for one the Federal Reserve System this is often referred to as FED. A few others are FHA, FEMA, and Housing and Urban Development which is often referred to as HUD. Some of the national fiscal policies that can affect mortgage rates, housing starts, and housing prices are for one and I feel is the biggest one is the lending rate. Are we as lenders able to borrow the money to finance a mortgage? Also the interest rates of these loans, if the interest rate is too high then we will not be able to borrow the money to finance a mortgage. I think that when it comes time for you to buy a home it will be one of the biggest and most important decisions that you are going to make in your life. This is something that you do not want to jump into without doing a lot of thinking and planning beforehand. This for most people will be the biggest purchase that they will make in their life time so you really need to weigh your options. If you buy a home you have a place that you can really call “your home”. You are not wasting money on renting a place that will never in the end truly be yours. Now if you are buying a home you become your own landlord, you are the one that has to pay to get things fixed. Also your can lose value on your home. So see buying a home is really something...
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...Assignment New House Risks and Benefits Jacqueline Miller XECO/212 07/13/2012 David Cullipher The government only has indirect control over the economy the direct control comes from the hands of investors, banks and corporations, fiscal policy means the government influence the economy it revolves around spend and tax involvement. There are benefits with fiscal policies; it can move around the structure of economic expenses. Cast for mortgage rates there is no way to tell what the market will be whether it will continue to go down over the next year or two. Stability Mortgage plan might work to stabilize the market for a shorter period of time by reducing foreclosures. As it stands the markets are still declining and for a first time buyer it is a good time to buy with the incentive of for the housing stability plan it afford the home buyer $8,000 tax credit first time buyer also is for someone who has not owned a home in the past five year. In other saying a stronger economy will offset the effects of higher mortgage rates. There has been a suggested drop of 10% may be in order next year while mortgage rates grows higher and many households are still having to service debt loads, however real estate’s sales data shows that less houses have been listed and prices are unchanged from a year ago. Today’s market based on what state it is the market for housing still has hope sales of new occupied homes are up and home prices are rising in most markets, although the market...
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...A New House Readiness Susan Whitebird XECO/ 212 April 5, 2012 Linda Beach The decision to buy a house or not is one of the biggest life changing decisions you can make. If there is more than one person involved in this decision to purchase a house they will experience the first principle of economics, people face trade-offs. What means more the price of the house or the location of it? I think that the location means more than the price, but you have to keep the price in mind when you are looking. How far are they willing to travel to work to get the home they want? When my husband and I bought our house I was willing to drive 50 miles a day round trip to and from work to get the home my husband and I fell in love with. The second principle of economics is also important when it comes to purchasing a home. The cost of something is what you give up to get it. We were paying $450.00 a month in rent and now we are paying $610.00 a month for our house payment. We had to pay off some of our other loans and we have to watch what we spend our money on to make up the difference of the rent and what our house payment is, but it is worth it. Most people will consider the fourth principle of economics when they buy their home. The fourth principle is people respond to incentives. When you own your own home it will provide you with a tax break when you file your taxes. We bought our house when there was a tax incentive of a 10% of the purchase price. This tax incentive...
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...International Trade Debut 5-25-11 XECO/212 Momoh Dudu Tariffs and quotes are normally tools that the government uses to gain control over imported goods from foreign countries. In most cases these are often used to control trade in a way that favors many of manufacturers to protect the local economy. Most countries have certain products that produce and enter the international trade that are different in many ways and benefit most of the other countries. Many companies produce benefits that being able to sell in markets where food is really high in most cases. Quotas normally mean that it can be used to assemble and economic balance and at times an economic balance. Import and export of many goods are set up in such a way for many reasons. It means protecting the income of stream for a given country. The home country gains revenues, but the home consumer pays a higher price for the product on hand. The trade restriction impairs many people in different scenarios in which it is not beneficial to contact the general public. The economy can inflate their prices to the general public although a ton of people could easily overlook it being they aren’t worried about nit loses so it seems, as if they are in position to fix everything if it is broken. The economy pretty much controls everything that goes on in most cases dealing with quotes. It is hard to invest in a common bank account that won’t take your money and the profit sharing margin is but the buy in is a little smaller...
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...A New House-Risks and Benefits Jocelyn D. Mack XECO/212 March 13, 2016 Angela Semexant A New House-Risks and Benefits The housing market of the United States is still a volatile issue with many Americans that want to become home owners. With the housing market depression of a couple of years ago, there are many different factors that contribute to a person’s ability to be a home owner. The Federal Reserve is the main controlling body of the government that decides if interest rates for borrowing money for any reason including home loans moves either up or down. The Central Bank and the Federal Housing Finance Agency play active roles to either increase or decrease the demand for housing. It is the cycle of supply and demand of available monies, mortgage rates, and housing prices. When the Federal Reserve either holds the interest rates or move them downward, the demand grows in the housing market. This is considered a monetary policy stimulus overseen by the Central bank and the FHFA. The consumer has more buying power for the size home they want to live in to raise their family or as an investment in their later years. Today’s housing market is offering up any number of price points in either present homes on the market, or new housing starts. The job market has somewhat stabilized with unemployment being at a very low point. Two income families have begun to move upward in their earning power with contributions from retailers holding their pricing on everyday...
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...A New House and the Economy XECO/212 A New House and the Economy The decision to purchase a new home is a significant one to say the least. With the current conditions of the economy the decision should be calculated down to the very last detail. The consequences of purchasing a new home will have a direct affect on the rest of your life, so the choice to purchase a new home should be one made with confidence and plenty of knowledge. You must take into account all the variables that will come into play such as the economy, the market, interest rates, housing prices, and most important your financial and employment status. The current status and strength of the economy and your personal standings will affect the marginal benefits and costs in the decision of purchasing a new home in many ways. One aspect is how well your finances are and how they may be in ten or twenty years and will you have job security still in place in as little as five years. This long term purchase will also be affected by the marginal costs and benefits of purchasing the home. The marginal costs would be the payment, the insurance, the maintenance and the interest rate. The marginal benefits would be that this purchase is an investment if the circumstances are right, the economy is healthy and your job is secure. The location in relation to schools, jobs, and other daily activities will also play a part in the decision and its benefits (Mankiw). Currently the housing interest rates are low...
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...CheckPoint: A New House – Readiness Principles of Economics XECO/212 Purchasing a first home is the biggest financial decision most people make in their lifetime. There are several factors to consider, and people who make this purchase must thoroughly review the risks and benefits. When my husband and I chose to buy our first home, we considered three economic principles: the decision-making principle of People Face Trade-Offs, the interaction principle of Trade Can Make Everyone Better Off, and the workings of the economy principle of Prices Rise When the Government Prints Too Much Money. We knew we would have to give up going out to eat or to the movies as often. Our mortgage payment is higher than our rent payment was, so we had to cut back on non-essentials; this was a trade-off we were willing to make The interaction and workings of the economy principles created a challenge. Home prices were inflated at that point, because of unethical loan. In this case, trade did make everyone better off, but only on paper. We knew we had to be careful of how we structured our mortgage so we were not in financial danger as the housing market fell. This required a lot of homework to make sure that we could meet these new obligations, and that we did not let our emotions make our decisions. The marginal benefit to us during the home search was that so many homes were available, and the marginal cost was the difference between our rent...
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...A new House - Risk and Benefits Leatrice McKibben XECO 212 September 25, 2011 John McGee A new House - Risk and Benefits There are many government bodies that control the housing market; HUD, Fannie May, House of Representatives, and Senate. The Federal Reserve Bank, even though not a government office but a group of private corporations, independent from the government but very much in control of the government, has the power to control what the interest rates will be and how the economy is ran. The major factor that determines what the Federal Reserve will do is the Prime lending rate. This rate determines if banks, mortgage companies, and other lenders can borrow money from the FED. For example; construction companies can barrow from banks to build more houses. The higher the interest rate, the higher home prices will become because of the cost of borrowing. When prices get to high, people cannot borrow money to buy them or to build them. The risk of buying a home does not know what the FED will do next. Will it raise or lower the interest rates and how long will it take to affect ones mortgage. The benefit of buying a home is that one can shop for the lowest interest rate and get government funding to help with the down payment and other housing lending cost. My recommendation for buying a home would be that one looks at the last few years of the housing market in the location of where one plans to buy. One could ask these questions; what is the current market value...
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...A New House Mark Anderson XECO/212 April 5, 2013 Anna Gonzalez A New House One government body that influences national fiscal policies is the Federal Reserve. The Federal Reserve is the central banking system of The United States. The Federal Reserve influences the interest rates on home loans through the buying and selling of bonds and securities. If the Federal Reserve purchases a large amount of bonds and securities interest rates on home loans will lower; causing a rise in home sales. A recent national fiscal policy that effected mortgage rates, housing starts and housing prices is the bond buying stimulus plan that the Federal Reserve implemented in 2008. The bond buying stimulus plan is a plan where the Federal Reserve purchases bonds in an effort to keep long-term rates down. The bond buying plan was started in an effort to help spur investment and consumption in the economy. There was a drop in interest rates shortly after the implantation of the Federal Reserves new policy. A rise in housing starts and home sales can be attributed directly to the lowering of interest rates. When it comes to weighing the risks and benefits of purchasing a home I would recommend a person find out as much information as they could on their own before consulting a professional. They should look at interest rates and determine if they are trending up or down. Look to see if the Federal Reserve is buying or selling bonds and securities in order to help...
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...International Trade Debate XECO 212 International Trade Debate The strength of the dollar rests on the fundamental strength of the US economy. The main problem with a stronger dollar is the concern of exports. A stronger dollar makes U.S. exports more expensive for foreign consumers and buyers. A tariff is a tax that one country sets on the imported goods or services of another nation. A quota in international trade is a government imposed limit on the quantity or the value of the goods and services that may be exported or imported over a specified period of time. Quotas are more effective in restricting trade than tariffs, particularly if domestic demand for a commodity is not sensitive to increases in price. Because the effects of quotas cannot be offset by depreciation of the foreign currency, quotas may be more disturbing to the international trade mechanism than tariffs. A tariff raises the domestic price, the domestic sellers will make out well while the domestic buyers are worse off. Tariffs hurt the country that imposes them, as their cost outweigh their benefits. Tariffs are a benefit to domestic producers who now face reduced competition in their home market. The reduced competition causes prices to rise. There are costs to tariffs. The price of the good with the tariff has increased; the consumer is forced to either buy less of this good or less of some other good. The price increase can be thought of as a reduction in consumer income. Since consumers are purchasing...
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...Williams XECO 212 January 11, 2013 Hamsa Wilson Principle of Supply and Demand. In this paper I will decide which principle plays a major role in my decision of buying a house. I will provide examples for each showing the interaction, decision making and the workings of the economy that I have made to decide which and where I buy a home. I will explain how the influence the marginal benefits and marginal cost associated with the decision to purchase a house. The first important principle that I would use is the second principle which states The Cost of Something is what You Give Up to Get It. I believe in this principle that needs a house you would have to save up and make sure you can afford it later in the years to come. This principle for example you would have to decide in years to come what is important the most a car to get around or a house to live in with your family. This principle also would be where you would decide in the house what you need or you do not. The next principle would be six which is Markets Are Usually a Good Way to Organize Economic Activity. I believe that this one would be important also because when you buy a house you would have to decide the market and where you want to live if deciding to get loans you would have to decide how to pay them off over the years. The last thing I will discuss about buying a house would be inflation, marginal benefits and marginal cost that is associated with buying a house. When buying a home you have...
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...International Trade Debate XECO/212 University Of Phoenix/AXIA The United States uses tariffs and quotas to restrict trade with foreign countries. This is imperative to control foreign imports and the impact they have on our economy. All countries produce goods that are available on the open market, such as automobiles, lumber, consumer electronics etc. The United States has a manufacturing base that is shrinking because of competition from other countries. In order to slow the progression of this decline we place tariffs on countries that produce products that we sell at home. Being one of the world’s most financially affluent countries we create a large market for goods, especially cheap goods that are mostly produced in countries that have much lower working condition standards than the United States. This gives the importing country an edge in the profit margin by way of the lower cost of production. In order to maintain equilibrium in the world market we impose tariffs and quotas. The benefit to the domestic producer is one that in many cases keeps the manufacturing base viable in the U.S., but this advantage predominantly effects the larger corporations that are beginning to take over much of the market, while the inflated prices and increase in jobs does not end up in the mutual pockets of the workers, but rather concentrates to the top. In many ways this is counterproductive because if the U.S. were to lose a manufacturing industry, the jobs it creates that do not...
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...and Benefits XECO/212 When to deciding to buy a house is a lifelong goal for many people. Imagine that you are renting a studio apartment and have just discovered you are having a baby. Your present apartment is small and far from schools and local services. You have decided to move. There are many factors that come into play when making such a large and weighty purchase. Examine the decision-making process from the perspective of an economist. In your Final Project, you use these principles and other factors to make a final decision whether to buy a house. Purchasing a home for the first time can be overwhelming. A house can be the largest investment someone makes. It can provide advantages, but it can present disadvantages as well. The following principles can be used when deciding to purchase your first home, “People Face Trade-offs” (Mankiw, 2007) or “The Cost of Something Is What You Give Up to Get It” (Mankiw, 2007). When deciding to purchase a home, the principle “People Face Trade-offs” can be applied to help make a final decision. The making of the decisions requires trading off one goal against another (Mankiw, 2007). The buyer must sacrifice a little to gain a lot and a first time home buyers must realize that it takes a lot of money to purchase a home. The buyers must sacrifice things such as vacations, movies, special occasions, and extracurricular activities to save money. The money you save is important to provide the down payment, home insurance, taxes...
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