BUYING A NEW HOUSE

Buying a New House



Buying a New House

1- Discuss which principles of economics directly relate to your purchasing decision.

Buying a new house is a major financial decision for most people. There are several things to consider when making that decision. The first principle that will play a major role in my decision making would be rule number one 'People face trade-offs'. A mortgage payment will cut into things like vacations and extra spending money as well as adding new monthly bills to the budget. Most apartments cover things like water, garbage, and maybe even cable. As a homeowner, these services will have to be added to the budget as well.

Factors such are principles, marginal benefits, marginal costs, the strength of the economy, the roles of the domestic economy and international trade. There are several questions that a person or couple must ask themselves before deciding to buy a house. These questions are to ensure they are ready, emotionally and financially to buy a new home. Is my current income reliable, I have a steady income, I have enough money saved for a down payment, how much is my debt, and I can make a mortgage payment each month along with the house insurance and repairs? These are all issues to be addressed to the fore most. If you can honestly answer yes to any of these questions, then you are financially ready to become a homeowner. Once the decision has been made to purchase a house, then the sub-factors come into play. A house is a financial asset and, of course, very much.

A home is a place to raise your children, a home is a safe place to call your own and a home is somewhere you put down your roots for your grandchildren. To a home buyer, the home buying process can be over whelming. When you decide to buy a home, you need to look at important issues such as location, price, and the size. When discussing the issue of location, there are many points that come along with that like the school district, the community, hospitals, churches, distance to work, childcare options, and local commodities like shopping. Of course, you would want to live near a good school district for your children and local community services such as churches, a good hospital, and even a mall. All of these factors are important. Price and size is also important. To determine how much money you can afford to pay for the house makes a difference in satisfying such factors like area and size or square foot. If your family is big then you need to purchase a home that is big enough to Como date that but if it is just you and your spouse then you don't need a huge house unless you are planning on having a family. All of these factors are equally important in the process of buying a new home. The 10 principles of economics are directly related to ...