New House Readiness

Latonya Rice

Jan. 6, 2012

XECO/212

Week One

Checkpoint; New House Readiness

Deciding to buy a house, in my opinion, would be a lifelong goal that I consider an extremely serious investment. My studio apartment would not be large enough for the newest member arriving to my family; it would only suit the time being. Therefore, I have decided to move to larger accommodations. I have examined the factors that come into play with making such a large and weighty purchase from the perspective of an economist. The principles that I think would play a major role in my decision are: Principles 1 - 10.

Principle 1: I would face tradeoffs in purchasing a home, a thorough look at my income and expenses will be a priority (i. e.”what if” scenarios). Principle 2: What can I give up to get my house (i.e. Sacrifices, what is necessary and what’s not). Principle 3: What are the benefits and opportunities of a house over an apartment? Principle 4: What are the incentives for me owning a house? Principle 5: Is this a beneficial trade that can make it better for everyone? Principle 6: Would it be a more beneficial organization owning a house (i. e. being closer to work, schools, etc.)? Principle 7: Would property rights enable more promotion for efficiency and to promote equity? Principle 8: Would this enable a higher standard of living or lower (with the trade- offs in my budget)? Principle 9: Inflation, the growth in the quantity of money (i.e. Would the payments increase). Principle 10: Short-run trade –off between inflation and unemployment (i.e. laid off or terminated from work, injured and not able to perform full- duty work).

All principles apply when making a decision as such. However, one must weigh every option before acting on it.