...Running head: PURCHASING A HOUSE RISK PAPER Purchasing a House Risk Paper Keller Graduate School of Management Project Risk Management PROJ 595 Dr. Susan Orr August 04, 2013 Purchasing a House Risk Paper INTRODUCTION The many advantages to owning a home have been well publicized. However, the above satistics make it clear that owning a home is not without risk. To form a complete picture, you, the prospective buyer, need to consider the potential risks and disadvantages of home ownership as well. Understanding these disadvantages beforehand will give you a better chance of minimizing their impact and avoiding the fate suffered by these homeowners. RISKS IDENTIFICATION There are many risks in buying a new house such as: • The opportunity cost of investing in an alternative investment is very high because the entire cash and future income stream is tied up into one asset a home, which may or may not appreciate. • The house is an undiversified investment, so if the market tanks as it has, game over. • Knowing that we do not own our home, the bank does. • A lot of cost connected to home ownership, such as repairs and insurance and fees and potential hazards I have not considered. • If I lose my job, game over, this will put a lot of stress on me. • There is a chance that your new home will lose value. Luckily, in general, the longer you own your home, the less likely a loss becomes. Loss of value is typically a short-term problem, possibly due to the local...
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...Risk Paper 1 Pm595 Risk Paper: Buying a new house Project Risk Management Professor: James Reckon By Magued Farag May 24, 2014 TITLE: BUYING A NEW HOUSE TABLE OF CONTENTS INTRODUCTION RISKS IDENTIFICATION RISKS RANKING MATRIX RISKS MONITORING CONCLUSION REFERENCES * INTRODUCTION Whenever considering a major purchase in life one must carefully consider the risks associated with making these purchase decisions. These decisions should be treated as projects in such a way that proper planning, analysis, risk assessment and contingency should all be aspects of the purchase process whether formal or informal. In this paper, I will discuss about a project that many people are familiar to: buying a new house. Few years ago, I moved to a new area and was trying to decide whether or not to purchase a new house, and if so, where should I buy it. I also considered if I should buy a preexisting new house or hire a builder for a new house. Every option had its own set of potential risks. If I continued to rent, was this really just throwing away money. If I purchased a house, could I afford it and was I buying the best house for me and my family? I approached it like any other project, with interviewing people, note collecting, collating, and interpreting the data. After reviewing my expenses and income and examining the tax advantages, I decided to buy a house but knowing that several risks may accompany my decisions, these risks rank from high probability...
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...Risk Paper 1 Project Risk Management 595 11/17/13 Buying our First Home In this paper, I will discuss about a project that many people are familiar to: buying a new house. I moved to Columbus in 2001 to go to college, after renting for nearly a decade and living with roommates, I found a woman that I wanted to spend the rest of my life with. I had a good job and a good woman the only thing that was missing was somewhere to call home. We moved to a new area and we were trying to decide whether or not to purchase a new house, and if so, where should I buy it. I also considered if I should buy a preexisting new house or hire a builder for a new house. Every option had its own set of potential risks. If we continued to rent, we were really just throwing away money. If we purchased a house, could we afford it and were we buying the best house for me and my family? I approached it like any other project, with interviewing people, note collecting, collating, and interpreting the data. After reviewing my expenses and income and examining the tax advantages, I decided to buy a house but knowing that several risks may accompany my decisions, these risks rank from high probability – high risk to low probability – negligible risk. There are many risks in buying a new house such as: The opportunity cost of investing in an alternative investment is very high because of all the cash and future income stream is tied up into one asset a home, which may or may not appreciate. The house...
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...Renting an Apartment is a better option than buying a House (Week 2 Day 7 Assignment) Is renting an apartment a better option than buying a house? My argument is buying a house is a better option than renting an apartment. The point of view will support my topic by including facts, statistics, examples and details. The point of view will include the pros of buying a home versus the cons of renting an apartment, such as buying a house is an investment versus throwing money away, buying a house can be a tax deduction, buying a house is an investment you can live in, having a fixed mortgage rate in buying a house is a better financial option than having to deal with the inflation of rent every lease renewal, last but not least buying a home will allow you to update and upgrade as you wish, inside and outside. My point of view will also include facts and evidence against the opposing position. An argument cannot be one sided. Including evidence such as an apartment is rent and rent is money that is not an investment, you can add up all the rent you have paid in the past twenty –five years and have nothing concrete to show for it versus paying a mortgage for the past twenty-five years and could own the house in another five in most cases. In an apartment you cannot upgrade as you wish, you may risk rent increasing every year upon the lease being renewed and new management can take over and you lose your apartment. With a house, you get a garage, with an apartment you have...
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...Proj 595 - Risk Paper 1 Pm595 Risk Paper: Buying a new house Project Risk Management Professor: James Reckon Authored: Michael Arcoli December 18, 2015 TITLE: Purchasing A HOUSE TABLE OF CONTENTS INTRODUCTION RISKS IDENTIFICATION RISKS RANKING MATRIX RISKS MONITORING CONCLUSION REFERENCES * INTRODUCTION Whenever considering a major purchase in life one must carefully consider the risks associated with making these purchase decisions. These decisions should be treated as projects in such a way that proper planning, analysis, risk assessment and contingency should all be aspects of the purchase process whether formal or informal. In this paper, I will discuss about a project that many people are familiar to: buying a new house. Few years ago, I moved to a new area and was trying to decide whether or not to purchase a new house, and if so, where should I buy it. I also considered if I should buy a preexisting new house or hire a builder for a new house. Every option had its own set of potential risks. If I continued to rent, was this really just throwing away money. If I purchased a house, could I afford it and was I buying the best house for me and my family? I approached it like any other project, with interviewing people, note collecting, collating, and interpreting the data. After reviewing my expenses and income and examining the tax advantages, I decided to buy a house but knowing that several risks may accompany my decisions, these...
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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 much...
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...ECO/372 May 10, 2016 Mr. 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...
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...Research Discussion Paper Is Housing Overvalued? Ryan Fox and Peter Tulip RDP 2014-06 Electronic copy available at: http://ssrn.com/abstract=2498294 The Discussion Paper series is intended to make the results of the current economic research within the Reserve Bank available to other economists. Its aim is to present preliminary results of research so as to encourage discussion and comment. Views expressed in this paper are those of the authors and not necessarily those of the Reserve Bank. Use of any results from this paper should clearly attribute the work to the authors and not to the Reserve Bank of Australia. The contents of this publication shall not be reproduced, sold or distributed without the prior consent of the Reserve Bank of Australia. ISSN 1320-7729 (Print) ISSN 1448-5109 (Online) Electronic copy available at: http://ssrn.com/abstract=2498294 Is Housing Overvalued? Ryan Fox* and Peter Tulip** Research Discussion Paper 2014-06 July 2014 * Financial Stability Department ** Economic Research Department Reserve Bank of Australia Thanks to Tom Cusbert, Luci Ellis, Richard Finlay, Alex Heath, Jonathan Kearns, Christopher Kent, David Lancaster, Tony Richards, Nigel Stapledon, Iqbal Syed, Chris Stewart and Marc-Oliver Thurner for helpful comments and discussions. We would like to acknowledge earlier RBA research by Robert Johnson. Views in this paper are those of the authors and not necessarily those of the Reserve Bank...
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...INSTITUTE FOR FUTURE EDUCATION ENTREPRENEURSHIP & LEADERSHIP, LONAVALA, INDIA A Research on Online Buying behavior of Consumer’s in India Research Proposal Sahil Maini PGDM 2012-2014 Under the Guidance of Prof. Sachin modgil & Prof. Ajitabh Dutta 13 PROPOSED TITLE: “A research study on online buying behavior of consumer’s in India” Abstract Consumers are playing an important role in online shopping. The increasing use of Internet by the younger generation in India provides an emerging prospect for online retailers. If online retailers know the factors affecting Indian young consumer’s buying behaviour, and the associations between these factors and type of online buyers, then they can further develop their marketing strategies to convert potential customers into active ones. The four key dimensions of online shopping as perceived by young consumers in India are identified. Besides that It is discovered that website design, website reliability, customer service and trust are the four key factors which influence young consumers’ perceptions of online shopping. The present paper focuses of the factors, challenges and measures to be taken by retailers to understand online buying behaviour of consumers in India. INTRODUCTION With an increase in use of internet as means of communication with consumers, the field of Ecommerce, online buying has experienced a rapid growth in the recent years. Its well known that online business i.e. business to consumers is increasingly...
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...Avoid These 10 Mistakes During A Home Remodel Remodeling your home is probably the most expensive and challenging venture you can have as a homeowner. But it is also the most fulfilling home project, especially when you get to step into the finished house. A home remodel is not easy, and there are a lot of setbacks you might possibly encounter. But we’ve rounded up the 10 common mistakes most people do during a home remodeling project, so you can save up on time and money by avoiding them: 1. Starting the remodeling project without a plan A plan includes all necessary details and decisions about the home remodeling project. This includes the detailed floor plan of every room, nook, and corner of the house. It should detail your home measurements, your chosen interior design theme, and the furniture you need to buy. And don’t forget to plan your living arrangements during the home remodeling...
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...the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers. We advise all readers that it should not be assumed that present or future recommendations will be profitable or equal the performance of previous recommendations. The reader should recognize that risk is involved in any option or security investment, and they should not assume that any formula, method, chart, theory or philosophy will result in profitable results or equal past performances. This publication should only be used by sophisticated investors who are fully aware of the risks in options trading. A reading of the options booklet prepared by the Options Clearing Corporation is recommended before trading options. No solicitation to buy or sell securities or options is implied. The information contained herein has been obtained from sources believed to be reliable, but there is...
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...What changes in the environment made it possible to consider the launch of an OTC Aids Test? Be specific. In order to understand what made possible to consider the launch of an OTC Aids Test, we should focus on major changes in the environment, meaning the proliferation of the virus, followed by the development of a global concern about HIV and AIDS, the consequent changes in public perception of the disease and, of course, technological progresses. Once associated with a cluster of injecting drug users and homosexual (marginalized social groups), AIDS was progressively becoming epidemic, spreading among high-risk groups to virtually all over the world. In 2005, the WHO revealed there were an estimated 40.3 million people in the world living with HIV or AIDS and every year, millions of new infections and deaths from AIDS were reported. Information about risky behaviors was disseminated in schools, universities and other social spheres, and developed a certain awareness and consciousness that would be a first-step towards avoiding infection and transmission of the disease. Gradually striving for greater empowerment in their healthcare decisions, consumers should have been more and more aware of their choices and started getting access to better information and medical assistance. During the last decades, medical research has made significant progress in HIV prognosis and slowing progression of a disease, for which is there is still no cure or effective vaccine. Hence, public...
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...SCHOOL OF GRADUATE STUDIES CENTRAL PHILIPPINE UNIVERSITY LOPEZ JAENA STREET JARO, ILOILO CITY ____________________________________________________________________________ REACTION PAPER Asian Economics Comment Presented to: Prof, Jima G.DeLeon, MBA Professor, School of Graduate Studies Central Philippine University In Partial Fulfilment of the Course Requirement in MBA 612 Financial Systems Presented by: Mehrdad Alavi MBA Thesis Option September 13, 2013 I. PRELINMINARY 1- The title of paper is Asian Economics Comment, The anatomy of bubbles, part 1. It is written at August 27 2009 by Dr, Feredric Neumman, whom is senior Asian Economist. The issuer of report is The Hongkong and Shunghai Banking Corporation Limited. Additional information for connecting to the author is +85228224556. FEREDERICINEUMANN@HSBC.COM.HK For more information, the reader can view HSBC Global Research at: www.research.hsbc.com 2- It talks about The Bubble in the financial market specifically in the financial housing market in the Asia and what was happening in the USA at 2008 in the same field. II. ANALYSIS AND REACTION 1- The author tried to anatomy of a bubble in the asset market which was happening at 2008 and before. The first part is discussed about what conditions required for that and the part two and three are belong to what is need to sustain the run. He had paid particularly attention to psychology and what behavioural insights...
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...Manufactured Homes Inc. start in 1975 to its rapid growth through the 80’s allowed it to be one of the largest retail of manufactured homes by 1987. With impressive revenue sale in 1988 of $210 million, at first glance this may seem like a sound investment but through analysis and valuation we have prepared a summary of the company’s strategy, risk factors, and industry conditions. Although, Manufactured Homes on paper seems like a great candidate for your firms portfolio, after reviewing our analysis you may have a change of heart. The manufactured home industry is fragmented, there is approximately 10,000 manufactured home retailers throughout the nation which are smaller “mom and pop” operations. This market is under a transition of consolidation, larger retailers like Manufactured Homes are acquiring the smaller firms lacking buying volume and inadequate capitalization. The larger companies like Manufactured homes were able to acquire companies because they could sell their products at a lower cost. As a whole the manufactured home industry is expected to grow on a year to year basis. This was caused by the continuous increases in average prices of conventional housing, causing low income families to seek alternatives. Families turned to manufactured homes which have much more to offer than an apartment with the advantage of equal to lower monthly payments. In addition the south eastern U.S was the country’s fastest growing market for mobile home which Manufactured...
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...and Consumer Studies Faculty of Human Ecology Universiti Putra Malaysia 43400 Serdang, Selangor Malaysia. Abstract Online shopping is the process of buying goods and services from merchants who sell on the internet. Shoppers can visit web stores from the comfort of their homes and shop as they sit in front of the computer. The main purpose of this study is to determine the factors influencing consumers’ attitude towards e-commerce purchases through online shopping. The study also investigate how socio-demographic (age, income and occupation), pattern of online buying (types of goods, e-commerce experience and hours use on internet) and purchase perception (product perception, customers’ service and consumers’ risk) affect consumers’ attitude towards online shopping. Convenience sampling method was conducted in this study and the sample comparison of 100 respondents in Taman Tawas Permai, Ipoh. Data were collected via self-administered questionnaire which contains 15 questions in Part A (respondents’ background and their pattern of using internet and online buying), 34 questions in Part B (attitude towards online purchase) and 36 questions in Part C (purchase perception towards online shopping). One-way ANOVA were used to assess the differences between independent variable such as age, income, occupation and pattern of online buying (type of goods) and dependant variable such as attitude towards online shopping. The findings revealed that there is no significant difference in attitude...
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