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 step. The first principle that I have applied to my life is the economics principle of making trade-offs. What this principle entitles is that in order to obtain one thing I must be prepared to give up others. This step has helped me prepare financially by allowing me to save more money. When I made the decision to buy a home I knew that some things would have to change for me