A New House Decision

A New House Decision

Chuck Lewis

XECO/212

Eduardo Delacruz

05/19/2013

Our decisions and the activities we do in our lives are affected by the economy, When making decisions, I consider the economic factors when I make a decision on the things that I am considering to purchase. I consider the economic factors while making an economic decision to purchase a home. A lot of thought should go into the decision that is made. I always make sure that I am still able to save a certain amount of money every month if I can’t I look for a more affordable option.

The decision to buy a house is the biggest decision and responsibility that most people will make in a lifetime. Buying a new home is a commitment that needs to be taken very seriously. The money that people spend on a house will be the largest purchase that most people will ever make. There is not much money left after the purchase of a house, most people invest their entire life savings to do so. The cost of a house usually eats up about 40 to 60 percent of household income which can decrease the purchasing ability of that person when the decision is made. The location of the house, schools, and taxes are very important factors to consider when contemplating on where and when to buy. I want my kids to have the best possible education that they can get, so I would sacrifice higher taxes to find a good location.

There are several principles of economics that can be used to aid in the decision making process when buying a home. One principle of economics that can be applied to the decision to buy a new house is the trade-offs that we need to face. Any decision we make in life has a cost and a consequence and things are sacrificed. The biggest trade off is the money...