A New House

A New House – Economy

I believe that the economy has proven vital to decisions regarding whether to purchase a house. We can say wait till the economy gets better to make that decision, but our economy has shown us that it will continue to go up and down. Since buying a house is something that we do not need to purchase, marginal benefit should be at its highest with an increase. We are not told to buy a house it is considered a want for us and if the economy falls there may not be money to buy the home or continue paying back the loan.

When buying a house it requires us to rely on marginal cost by saving money and cutting other cost in order to have the money available to purchase the home. By doing this purchasing removing a tax deduction into the mortgage interest depending on the rate, could cause people to reconsider buying a home which in turns affects the housing market. It makes people stop and think before purchasing, as many tend to think of the tax more like a cushion to help secure a loan based on their income.

If the government spends money in the wrong way this will cause the banks to have less money to loan to people to purchase a new home. In order for someone to make a purchase they have to make sure that they can continue to afford the house, and with continued increases in taxes, many are questioning whether buy a house at all is worth the chance of losing it later.less of other products to save for this house could decrease the economies profits, by holding out to purchase something of greater value, like a home.