Xeco 219 Final Project--a New House Decision Essay

2029 Words Dec 5th, 2010 9 Pages
A New House Decision
Karen Taylor
XECO 212
October 17, 2010
Nicholas Kuzmich

New House Decision

The decision to buy a home is a very big and important step and should be entered into very carefully. Home buying is the most important decision that a couple or person will ever make in their lives. With a new baby coming, the studio apartment is going to be too small for a family of 3 to live in and also the apartment being too far from local services and schools, all of these factors that have come into play have played an important part for the decision in buying a home. With the bad situation of the housing market, at this time will also play an important role in deciding to buy a house. Many people will decide on looking to
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With a home being the most expensive asset that you will own, the marginal benefits and marginal costs will affect the homeowner's assets enormously. The strength of the economy will also affect the cost of home ownership in a number of ways. It will establish the market price that has to be paid at the time of the purchase. It will be the most important factor in determining the interest rate, and consequently hoe much has to be repaid. It will have an effect on what the banks and lenders will require from the homebuyers before extending them a home loan, which could affect how much money is needed to put down on the house and what the interest rates would be. It will also determine if the homebuyer has enough finances to be able to afford the house payments. During times of economic growth, a consumer may feel that purchasing a house is a good move to home ownership. During the good times of economic growth, a homeowner does not have to worry about their finances because of the economy being so good. For that reason the home owner feels that the marginal benefits outweigh the marginal cost. On the other hand, during a recession, a homebuyer may feel that buying a house is not a good decision since they would be worried about finances and would decide to save more money. For that reasons they would feel that the marginal costs outweighs the marginal

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