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New House - Readiness

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Submitted By krissteeleigh
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New House - Readiness
Of the 10 principles of economics; I would concentrate on two particular principles throughout my decision process of buying a new home. Principle one: people face trade-offs. The trade-off would be the cost difference between a home and a rental. Assuming the payment for a studio apartment is substantially reduced compared to a house payment. In addition to an increased house payment there are additional costs to consider as well for instance; electric, gas, water, property tax and homeowners insurance, things that could be included in the cost of a residence that is rented. Principle two: the cost of something is what you give up to get it. I have to consider what I would have to give up with purchasing a home contrasted to my rental. In a rental, the property manager is more likely to be held responsible for any issues within the apartment, whereas an owner of a home is the responsible party for these issues. I would be giving up being able to rely on someone else to take care of the issues within the apartment because the cost of these issues would become my own responsibility. In additional to financially costing me more money it could also potentially assume my attention as well. The marginal cost of the decision to buy a home now could possibly put a damper on me financially, verses buying in the future and having the ability to save and not be financially put in the hole. However, the marginal benefits would be a spacious living area for my family. In every decision we make there are always going to be pros and cons, so basically it comes down to what the decision will better benefit you in the long

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