Purchasing a New Home
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- Date Submitted: 07/20/2010 02:46 AM
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Purchasing a New Home
XECO/212
April 18, 2010
Janet Hunter
Purchasing a New Home
In today’s economy buying a new home is a big decision. A person has to ponder on several different things in order to make the right decision. One has to think about the 10 principles of economics, the economy as a whole, government spending on the economy, the marginal costs and benefits, and even what role the future of the economy will play towards this decision. With all these things in mind one has to consider that the buying of a new home should be put on the waiting list, until things start to come up.
The first thing to consider is the economy itself. The economy plays a big role in the purchase of a new home. If the economy is weak and the unemployment rate is high then people are less likely to decide to take the big leap in purchasing a new home. When the economy is strong, there are an abundance of job opportunities for people. Buying a house is a big step. It is a great financial burden to those who are not wealthy and can buy outright. Most have to finance, and this means, depending on their credit, a large monthly payment. With this payment, a person needs to know that his source of income is steady and have no fear that at anytime it could be taken away from him or her. Keeping that in mind, if a potential home buyer feels that he or she could not be able to make the mortgage payment due to the weakness of the economy they probably detour away from that and put it off to the near future when the economy becomes stronger, and jobs are more secure.
Another thing to consider within this economy is the fact that the government is trying to remove the new home tax deduction. This is a big incentive that people look forward to. They look forward on this helping with possibly enlarging their return. Then with that return either pays more towards the principle of the house or putting extras within their new home to upgrade it. So with the removal of...
XECO/212
April 18, 2010
Janet Hunter
Purchasing a New Home
In today’s economy buying a new home is a big decision. A person has to ponder on several different things in order to make the right decision. One has to think about the 10 principles of economics, the economy as a whole, government spending on the economy, the marginal costs and benefits, and even what role the future of the economy will play towards this decision. With all these things in mind one has to consider that the buying of a new home should be put on the waiting list, until things start to come up.
The first thing to consider is the economy itself. The economy plays a big role in the purchase of a new home. If the economy is weak and the unemployment rate is high then people are less likely to decide to take the big leap in purchasing a new home. When the economy is strong, there are an abundance of job opportunities for people. Buying a house is a big step. It is a great financial burden to those who are not wealthy and can buy outright. Most have to finance, and this means, depending on their credit, a large monthly payment. With this payment, a person needs to know that his source of income is steady and have no fear that at anytime it could be taken away from him or her. Keeping that in mind, if a potential home buyer feels that he or she could not be able to make the mortgage payment due to the weakness of the economy they probably detour away from that and put it off to the near future when the economy becomes stronger, and jobs are more secure.
Another thing to consider within this economy is the fact that the government is trying to remove the new home tax deduction. This is a big incentive that people look forward to. They look forward on this helping with possibly enlarging their return. Then with that return either pays more towards the principle of the house or putting extras within their new home to upgrade it. So with the removal of...