Final Project: A New House Decision
When the time comes in a person’s life to purchase a new home, they have accepted a decision that could be life changing. This decision can be difficult and is influenced by several different factors, such as the stability of the economy, the markets and types of goods that affect supply and demand, and the fiscal policies that could have an effect on the housing market. This decision has become even more difficult in recent times due to a less than favorable economy. Before a decision can be implemented, there must be some research and investigation done on the many factors that influence an investment as large as this.
In order for a consumer to decide whether or not now is the time to purchase a new home, there are 10 basic principles of economics that we can follow. By learning and realizing these principles, you will have the ability to make one of the largest investments that a consumer could make in a lifetime. Even though all of these principles relate to the decision of purchasing a new home, there are some that have a direct impact and influence on an investment this large. The first principle that should be considered is that people face trade-offs. In order for someone to get something they want they usually have to give up something else. If purchasing a new home seems to be the decision that is best for the consumer, they may have to give up things such as family vacations and excessive spending on clothing or food. All factors of a trade-off could be considered by looking at the pros and cons of each situation. For instance, does more space, private living or the benefit of paying on something you will eventually own justify the cost of added utilities and maintenance of a home. There are other considerations to be taken as well, such as property and house taxes that would not be present in a rental agreement. This is
References: https://ecampus.phoenix.edu/secure/aapd/vendors/tata/UBAMsims/economics1/international_trade/economics1_international_trade_frame.html http://www.oecd-ilibrary.org/docserver/download/fulltext/5kg3slm7b8hg.pdf?expires=1352665457&id=id&accname=guest&checksum=22561F360D2E01383CF05FE8E030C335 Chapters 1-5,9,11,13-18,23,24,28-30,33-35of Principles of Economics 9780324832945, Principles of Economics, 4e, N. Gregory Mankiw - © Cengage Learning