Checkpoint: A New House- Economy
The strength of the economy as a whole could affect the marginal benefits and the marginal costs associated with a decision to purchase a home by the market itself. If the market is in “good condition”, it can lead to a good house hunting experience because rates are at normal. If the market seems to be down as it currently is, there may be some pits and downfalls, but rates are then low, causing house buyers to have more options and selections when purchasing a home. Some home buyers feel that it is in times of recession to buy a home because more money is saved. When there is economic growth, more money is spent on buying a home. When tax deductions are removed on mortgage interest, the result is a fall in demand. Home buyers then find that marginal cost is more than marginal benefits. Other changes in government spending and taxes affect my decision in buying a house in many ways. There are many things to consider when purchasing a home. A house is not an easy thing to purchase. And to that, government changes in costs toward buying homes or changes in the economy already affect this great change. Costs will either go higher, or they will stay steady (though rare, but sometimes true). However, other factors such as taxes are implemented. In some home areas, property taxes are very high so that at the end of the year, one will really reconsider their housing in that area.
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