A New House-Decision

A New House - Decision

With the way that our economy is today the decision of buying a new house or anything that we may want to finance is going to be a major decision. In this paper I want to show my audience how I would make this decision based on the ten principles of economics. We will see how some things that we benefit from buying during the bad economy over weigh the cost that we may take on as a debt. I will also include in this paper the impact that the foreign trade has on the way I make my decision. The economy is always going to have its ups and it downs and therefore we have to use what we have learned to buy or wait on major or any purchase. We all like to get the best interest rates when we borrow money to buy things.

To begin with I believe that any time we want something better than what we already have we have to give up something in order to buy the new item (Cengage Learning, 2010, p. 1) . This would be like giving up smoking to buy a new car that you have always wanted. I have had to give up many of thing in my life so that I could afford to buy something new. Something else that I used from the principles of economics to help make the decision of buying a new house was that I had to compare the cost and the benefits of making the decision the way that I did (Cengage Learning, 2010, p. 1). I would say that this is important because if I am not going to benefit from making this purchase or would I have been better off keeping what I already had. This was not a decision that I could make over night because I had to take in the risk that are involved. Do I really need to buy a new house or can it wait for a while. This would be thinking rational about what I am going to do. What kinds of incentives are the housing market going to give me when it comes to making the decision to buy or wait. I would say that if the market isn't going to give you the incentive to spend your money on the house they really don't want you business very bad. I am like any other person that is looking to buy a home or anything that we need. I want the best quality item for the best prices and I think all people do this when they go out to buy something. We can also benefit from a trade in the way we live our everyday lives. If we are willing to pay for somebody to do the work for us we will be able to take that time that it would have taken us to complete the job and do something that we really like to do. I believe that the prices that are set by the market are very important to making the decision of buying and or selling a new home. If we are selling something we want to get prices that we can for the item that we are selling and on the other hand the buyer is also trying to get the best price and interest rate that would fit their budget.

Something that really didn't have a lot to do with the way I make decision about whether to buy something or not is the principle that the government can dump money into the economy to stimulate it for a given time. This sometimes gives the economy the extra bust that it needs to get over a hump because the best economy is a stable economy. But the government can also put too much money into the economy that the interest rates go way up and prices of goods and services also go up because there is so much money in the economy. This may sound good but it can really hurt the economy when the money all runs out. In our country we have a really high standard of living at large because we can produce goods and services that can be traded to other countries. With more money in the economy the companies can afford to hire more people to produce the demand for the goods but then when the economy stables some of these people will be laid off and out of a job.

At this time I have chose to buy a really nice four bedroom home because I can get the best fixed interest rate and the best price on the materials to build the home. With the economy down the lenders are giving me the incentive to buy the home now instead of waiting until the economy gets better. I have a good job that I feel that I will be able to afford the payments and still pay all of my other bills. The benefits that I get from buying now rather than waiting is the interest rates are really low and I will not have to pay as much back in interest. The housing market has been getting a lot home flooding the market so they are really trying to sell these homes at a very good price. The contractors that build home like the one that I am buying are looking for work and will build the home cheaper now than when the economy was really good. If I don't take advantage of these great deals now I will be paying a lot more for the same house when the economy gets better. We always