...A New House – Decision University Of Phoenix XECO/212, Week 9, Final Project April 21, 2012 Catherine Higgins The decision to purchase a home is often the most important financial decision and individual or family will be faced with. The largest single financial purchase in an individual's lifetime is often the purchase of a house and one of the largest factors of personal wealth. All ten of the principles of economics are directly related to the decision to purchase a house on some level. These economic principles will have an impact on the purchasing decision and the long term financial aspects of home ownership so it is wise to incorporate these ten principles into the decision making process to ensure a sound financial decision is the outcome. When considering the purchase of a house, the ten principles of economics that need to be addressed can be broken down into three stages of the decision making process. The first step is to examine how the decision is made by incorporating the first four principles of economics which include, the trade off that comes with every financial decision, the real cost of any item or service is what is given up to get the item or service, rational people think at the margin, and people respond to incentives. Once it is clear how the decision is made, the next three principles of economics address how people interact with economics and include factors such as, trade is beneficial to everyone, markets are...
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...Final Project: A New House-Decision Anna Schultz XECO/212 October 30, 2011 Chiara Yates Final Project: A New House-Decision Many of our decisions are influenced by the state of our economy. Purchase of big ticket items such as appliances, furniture, autos, and a home follow a line of investigation before the decision to purchase is implemented. The purchase of a home is one of the largest investments made in a lifetime, and uses many factoring influences before purchase. This paper will show how economics plays into the decision of the purchase. One of the first areas to consider is what the trade-off will be in purchasing a home versus the benefit of renting. What we need to consider is if purchasing a home and providing more space, and living closer to shopping and schools, justifies the added cost in utilities and maintenance of a home. The opportunity costs are another factor to consider. We can vacation closer to home instead of the trip to Europe we had hoped to take. Another option would be to maintain our existing auto instead of buying a new car. We need to research the marginal costs we would need to pay out. These include the amount of down payment, closing costs, taxes, insurance fees, and moving expenses. If we rent a larger apartment, we won’t have those costs, but we also wouldn’t have the benefit of ownership/write-off of interests in loan and property taxes. Monthly rent costs may be as much for a larger apartment versus a home that could...
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...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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...A New House - Risks 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...
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...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 things such as vacations, movies, special occasions, and...
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...International Trade Simulation xxxxxx XECO/212 x/xx/xxxx xxxxx With international trade simulation this is showing how the international trade is able to function within all countries. With the simulation it provides a short overview of how to implement the trade restrictions within all tariffs. The most important thing is that the simulation is able to provide fundamentals about how you need to negotiate trade agreements. In the Rodamia simulation it is great that with this you’re able to see how all international trades are coordinated. In the Rodamia representative office is the place where all the major business decisions are decided and were all investment policies are born. Inside of the simulation the main guy is that Michael who is the president of Rodamia. Michael presents the image that he is a good businessman and is capable of handling international trade negotiations with other countries. Rodamis is one countries that has a GDP of 4% from there agriculture, and 30% from there poultry and other types of services. The rest of the 66% comes from many different types of services. There is an advantage of international trade. This advantage is that of gaining the cost of principles. Efficiency with comparative advantages is able to allow other countries to be efficient with inputs that they put and also there outputs will be better than if it were done alone. Many of the trade restrictions can be beneficial to countries some of these could be that of quotas, embargos...
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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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...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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...MY NEW HOUSE XECO/212 PRINCIPLES OF ECONOMICS 7/25/2012 Many of the decisions we make as consumers are directly related to the current state of the economy. Moreover, as consumers are faced with life changing purchases, they will weigh the marginal costs and benefits associated with their purchase. This is most apparent when there is a decision to purchase a new home. Throughout this paper I will explore the economic principles that directly relate to this type of purchase, as well as identify the contributing factors that help shape the strength of our economy. The decision to purchase a new home can be a daunting and challenging choice. As current homeowners will testify, various factors will contribute to this life-changing decision. One of these factors includes trade-offs, which they will face before and after their purchase. This trade-off is one of the fundamental principles of economics; stating that we must give up something to receive something else. For a perspective homeowner this trade-off can be a reduction in the amount of available purchasing power. Once the purchase has been completed, the homeowner would be required to spend any extra money on their mortgage payment. Or for a couple who travels, it could be the loss of multiple vacations to popular destinations around the world or for someone like me who enjoys getting massages on a regular basic it would become no more. Moreover, this first principle defines that every decision...
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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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...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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...Final Project: A New House – Decision XECO 212 Week 9 7/21/11 Seffan Bune Home ownership is considered by many as the pinnacle of the American dream, a two car garage, white picket fence, and nice backyard for those projects that are somehow always nearly completed. This is what we have been told is the major leap into adulthood and makes you one of the high caliber Americans who can claim that their home is their castle, but is this still true in this country? With the financial downturn and the home foreclosures at a all time high, nearly every block I see has a home for sale at reduced price so how does this milestone still hold up to scrutiny and how can this generation still reach for that goalpost of what is considered the standard of the happy nuclear family? The decision to purchase a home is the major point in an American life and it is a decision that should not be taken lightly because if not done correctly and with a plan on how to sustain the purchase that is not solid the consequences could be dire. After taking this course I have found out that there are methods and concepts that if implemented correctly the idea of owning a home is still within grasp of many of us but there are many things that need to be weighed before pulling the trigger on such a large and momentous decision. First are the ten principles of economics which I will go into more detail later on that are crucial to making a large purchase be it a home, car, or any other large ticket item...
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