...A New House- Decision XECO212 June 8, 2013 Don MacLean A New House- Decision “Home ownership matters.” Does it? I mean, there is nothing written in stone that says we ALL have to own a home. Growing up I always felt a sense of security knowing that I would always have the same bedroom, the same backyard, and the same house. Many of us probably think of that when we consider buying a home. Some of us want that sense of security. We want to lay down roots, so to speak. Others are perfectly content with renting. I had a friend say to me that he would much rather rent and not have to worry about repairs and everything else that goes with owning a home. He did not want the added responsibility of owning a home. Whatever your reasoning might be, I am sure most of us have at least thought about home ownership once or twice. I am at a point in my life where I have been seriously considering buying a home. I have been saving over the past few years and I have also been clearing any past debts that I had so that I do not have extra bills to pay. I want to be financially secure before considering taking that next big step. Most people think like I do. They consider the financial aspect of buying that new home and like to prepare themselves financially before entering into that commitment. While preparing myself financially, I have taken into consideration some of the principles of economics that will help me prepare financially for this next...
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...The Process of Buying a House Whitley Alexander Central High School Most people want to be the owner of their own house one day, but buying a house is not that simple. There are many processes and steps to buying a house before you can call it your own. The government and taxes play a very important role in this process. Before buying a house, you have to make comparisons about the homes that you think are best for you. The first step to buying a house is starting your research early. As soon as you can, start reading newspapers, magazines, and search on websites that have real estate listings. The next best idea is to take notes of specific homes you find interesting, and keep track of how long they stay on the market....
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...thought and care. The decision in which I have considered to have been the biggest one yet for me was, buying a home. The decision of buying a home was considered more as a personal decision rather than a business decision. Fritzsche, David (2007) states “ Personal values have long been associated with individual decision behavior” (p. 1). As mentioned in the quote, the decision was driven by my personal values. The process and the decision of buying a home were longer than expected. The process in making the decision was based upon continuing to rent or own a property. In the decision-making process I was assisted by my wife and it consisted of the following, Identifying my decision, self assessment, gathering information (pros/cons), weigh out the best option, analyzing my option, select my option, and finally take action toward my decision. The process in making my decision had a structure, as previously stated I had identified my decision of buying a home rather than renting. This first step was based on my family values and proving a place to call home. The second step was completing a full self- assessment. Part of the assessment consisted of analyzing my finances, needs, and wants. This second step was a very important one because evaluation my finances played an important role in the final decision. The third step was gathering all the information of owning a home rather than renting. Part of this step included understanding the pros and cons of both options. The fourth...
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...HOW RENTING AN APARTMENT VERSUS BUYING A HOME BENEFITS ONE’S FINANCIAL PLAN TOWARDS PURCHASING A HOME IN THE FUTURE. How Renting an Apartment Versus Buying a Home Benefits One’s Financial Plan towards Purchasing In The Futu We apprehend a vast amount about renting an apartment versus buying a home. Each advantage and disadvantage is deluged with persuasion on the process of making renting or buying as uncomplicated as possible. Many individuals do not believe renting is the better alternative. Renting property whether it’s an apartment, condo, townhouse, duplex, or home does not allow the person to own while renting, or build equity within the property. The ability to purchase a home is a great milestone of achievement for any individual. However, renting to start off when you first move out from your parent’s home is the better option for an individual’s financial plan for today and the future. It too can better position an individual to purchase the home at a time when it’s most feasible to their budget for benefits financially. Renting should be considered from various aspects such as size, maintenance, relocation cost, and financial growth. Size is the largest contributing factor for reasons to accommodate all parties residing in the unit. It will demonstrate how buying a home in square footage in comparison to the mortgage would be greatly higher than renting. Generally, apartments are larger in square footage and cheaper according to price in essence to monthly...
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...Housing Development, Finance Board. The Housing Finance Board is responsible for setting mortgage rates for homes and property and regulates banks that supply money to local lenders, ensuring that they are lending money to suitable person’s at appropriate rates. Housing and Urban Development (HUD) is responsible for working with the community to ensure more people to become home owners, and also work to provide low-income families the opportunity to obtain homes. The Federal Housing Administration is responsible for insuring bank loans for home buying. Considering purchasing a home, it is important to know if the interest rate is important to know if the interest rate is relatively low compared to others; as well as if getting a fixed rate rather than a variable rate which can fluctuate at any time. When making the final decision of purchasing a new home, there are many factors to take into consideration and how risk and benefits may have an impact on the final decision as well as the current state of the economy. Knowing what you are looking for and what to expect to find out about all the risks and benefits when finding the place. Certain cycles of the economy will benefit the buyer and during other times, it mainly benefits the seller. Making sure to consider the marginal benefits and cost tied to purchasing a new home will assist a person that is purchasing his, or her new home during a positive time in the market as well as the economy. Marginal benefits are the benefit changes...
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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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...During the 1950’s The American Dream had changed, WWII veterans returning home realized this new change and bought into the fantasy. The U.S. government introduced the GI Bill in 1944 that gave financial assistance to war veterans for education, business loans, and of a new home. This new life soldiers sought after was complete with a wife, three children, a dog, and a cookie cutter home in suburbia. As many American civilians watched television programs that painted this pretty picture, and seeing veterans achieve this life style, it wasn’t long before the country began to chase the fantasy of owing a home and living the America Dream. Limited knowledge about buying a home was available to the consumer, as this was a fresh new concept. Since this concept of the American Dream was introduced, every generation seeks to achieve it year after year. In the process much information and statistics have been obtained; and the risks and rewards have since changed. There are huge risks involved in buying a home, and multiple pros and cons that should be thought out before buying. One should strongly consider the 10 principles of economics such as “A Trade-Off”, “The Cost of Something Is What You Give Up to Get It”, and “Rational People Think at the Margin” to name a few. A buyer should compare the marginal benefits, and the marginal costs; and be aware of the strength of the economy. As I consider these factors I also look at other markets that may affect my decision, and compare different...
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...A New House Readiness Purchasing a home can be a big step in anyone’s life; I can have its advantages and its disadvantages. There are many options an individual would need to think about when investing in a home. The principles that would help would help with decision- making would be Face Trade-offs (Mankiw, 2007) The Cos of Something is What You Give Up to Get it (Make, 2007) Decision-making when buying a home the principle People Face Trade-offs will help with the final decision. With making the decision this means that individual will be trading off one goal against another goal. (Mankiw, 2007) In the process of buying or investing in a new home as a first time buyer will have to sacrifice a lot, such as going out of town to visit family and friends or giving up special activities. Furthermore they will have to spend quite a bit of money when purchasing a home. This is the only way they will be able to save money it to sacrifice other things they like. There are different things an individual purchasing will need the money for such as taxes and mortgage and home owner’s insurance. Also the buyer would have to put in time and effort when searching for the home, not to mention the lender. If that person(s) understand the value of trade-offs and understand the cost that is available they will be able to make some high-quality decision. Cost also plays a big part in purchasing and or shopping for a home. Marginal decision making can help explain some other puzzling economic...
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...Michael Kraynik Product Purchases and the Economy For this paper I’m going to select buying a home as my product of purchase since I’m currently in the market of selling my existing home and purchasing a new home. When considering making large financial purchases in today’s economic world, you have to take into consideration the possible long-term effects on your financial situation, current budget or future outcome. You have to ask yourself if the purchases you want are ideal and are you in a financial position to make such a significantly large purchase. There are so many factors to consider than just personal obligations or wants, but is it economically sound in today’s market as well. In this paper, I will talk about and try to explain some of the economic indicators such as interest rates and inflation rate as well as job market for the area. While considering if any of these indicators impact the supply for what I will demand over a two year period. Also in this paper, I have to answer how I might apply my understanding product, and how I am considering purchasing versus the supply and demand. Also I need to describe the impact on the price of the home and whether making the purchase should or should not occur or possibly be beneficial to me. Lastly, I will see if there are any macroeconomic shifts in supply or demand affecting the price of the Home. Thus, leading to the final decision of whether to purchase a new house or not. Economic Indicators With every...
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...purchasing and procuring of goods and services with the object of selling them at a profit. Trade means buying and selling of goods. It involves the exchange of commodities for money or money's worth. It is the means by which people sell those goods which they do not need. Traders serve as the link between producers and consumers. They help in directing the flow of goods to the most profitable markets. They, also bring about the equitable distribution of goods. In the absence of traders, producers will have to go in search of consumers. Trade is the nucleus of commerce. Other parts of commerce such as transport, insurance, warehousing, banking and advertising revolve around trade. Trade may be classified into home trade and foreign trade. Home trade may further be subdivided into wholesale trade and retail trade. Similarly, foreign trade made by sub-divided into import, export and entrepot trade. These various types of trade are described below: 1. Home trade: Home trade is also known as domestic trade or internal trade. It means buying and selling within the geographical boundaries of one country. Both the buyer and seller belong to the same country. For example, trade between Bombay and New Delhi is home trade. Payments in this type of trade are made in the currency of the country. Home trade is of two types: (a) Wholesale Trade: It implies buying and selling of goods in large quantities. Goods are sold to industrial users or institutional buyers....
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...write about in my final paper is, renting an apartment or house is better than buying. My point of view on this topic is just that, in today’s economy renting is much better than buying a house. Every day you here of more and more families losing their homes either due to rising interest rates or a lay off and they just can no longer afford to make their payments therefore they end up losing their home. In these tough economic times, why would anyone want to risk something as big as their family’s home? Although renting may not lead to home ownership, it is much less of a risk than jumping into something that you are simply not ready for. On top of the lesser risk value, renting can at the end of the day be quite a bit cheaper. For instance when you rent, if something goes wrong in the apartment/house the only thing you have to do is call your landlord and they will either come and fix it or call someone out to fix the problem which ultimately will save you hundreds if not thousands of dollars. Paragraph two: When writing my point of view on “Renting an apartment is a better option than buying a house” I plan to let the reader see my point of view on the situation. I think that persuading the reader with my argument, renting is the better option, will be rather simple because I am very passionate about this. I think that possessing an emotional investment will help me to be able to show my point and grab the reader’s attention. Currently, renting a home allows you to have...
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... Buying my home was one the important lifestyle and financial decisions I had to make. The emotional highs, lows, and experience of purchasing my home depended on how well I did my own research; talking with different homeowners, doing Internet research, looking at used and new homes, weighing the pros and cons of buying new versus buying and older home and visiting different homeowner builder. My decision-making process of finding the right home took approximately two week. During my two week causative research, I used the below listed seven step process decision making process. Deciding to buy a New Home During the time I brought my home I was working overseas and during tax time I owed the Government anywhere from 5-10 thousand dollars a year. My tax advisor advise me on the different ways of getting a tax break like buying a new home, so to offset my taxes I decided to buy a home, near my mom, so she could watch the home while I was overseas. Not only did I save money on taxes my home is also a great investment that provided equity buildup, specific financial gains, value appreciation potential and the sense of pride of being a homeowner. Finding a Builder Instead of finding a real estate agent, I did a causative research on homebuilders versus a realtor, and I decided on working with the homebuilder, because I actually did not have the patients or the time of looking at 10-20 different homes and builders in the...
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...Before buying a home, you want to make sure that everything stays up to par. It is sometimes surprising how many people place trust in the home inspector to tell them the truth. What a lot of people do not realize is that most home inspectors will not scrutinize anything that is not blatantly obvious. The typical response when something seems out of place is to refer it to the specialist. The problem has become so widespread that the state of Arizona has now created a system where you have to attend college to be given a license. Is There a Problem? Refer It to the Specialist Your standard home inspector might spot an issue, but a lot of them aren't going to tell you if there is a gas problem or the home had previously been used as a meth...
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...Buying a House MGT/230 August 13, 2013 Buying a House In everyday life, human beings have to make decisions. While some decisions appear simple, others are complex and require one to take time deliberating on them. In their context, some of the decisions that people have to make include changing of careers, joining learning institutions, buying a home or even opening a business, among others. This essay explores the process I followed while I finally decided to buy a home. While making a decision to buy a home, I engaged six processes. Firstly, I established a constructive surrounding that would allow me to identify my objectives (Taylor, 2010). Additionally, I consulted with my parents and friends to avoid making a decision on my own, which might not be good at the end. While making consultations, I allowed all involved parties to give their opinions, with an aim to come up with the best decision. Secondly, I embarked on generating alternatives, with an aim of making a comprehensive final decision. I employed brainstorming in order to generate more ideas (Montgomery & Lipshitz, 2004). I managed to gather ideas that provided me with reliable alternatives. Thirdly, I embarked on exploring the alternatives in order to determine the implications, risks, and validation (Jasper, 2007). I managed to identify the risks I was likely to encounter while buying a house, the effects of my decision. In terms of validation, I engaged cost analysis, and determined...
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...and issues is evaluating the various solutions and choosing the best one. Growing up most of us desire to have a family and a nice comfortable home. Taking the first step to buying a house is a difficult decision and most couples goes through a lot of planning when preparing to make this commitment. Aside from financial support, searching for the right house takes a lot a lot of time. When the house is found that’s desired the next step is to investigate the neighborhood. Many times this step is omitted but it may be the most important step to making a final decision because the neighborhood as a whole is the place which people invest, raise their children and live for many years to come. Making sure to cover all needed steps to buying a home is most crucial for peace and happiness to be united inside and outside the home. When I bought my first home in Georgia in 1998, my husband and I were in a hurry to purchase a home for our family of three. I was in my early twenties and was very inexperienced in buying a new home. After several months of looking at multiple houses which were shown by my cousin who was my real estate agent, my husband and I found the perfect house, a beautiful 1800 square foot home with three bedrooms and two and a half baths. The house was located in a very nice quiet subdivision, and my soon to be home was near the end of a cul-de-sac. My husband and I feel in love with the place at first sight, it had all the options we were looking for along...
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