Factors Affecting New House Purchase Decision

When someone decides to take the major choice in life to purchase a home they need to feel secure in the process and decision. The purchase of a home is an investment in their future they need to feel secure in the choice made. This step-in life at times are due to future family planning and ensure a they are a part of an environment is one they can thrive in. One of the major draws of homeownership is the investment made when choosing to have a mortgage versus the continuous cycle of renting. Which is why real estate transactions are important and ensuring that they are handled legally and protect all parties is important.

In conclusion, the decision to either buy or rent a house is a complicated decision that involves considering many factors. While buying might be cheaper in the long-term, it is critical not to make the buy or rent decision based solely on the numbers. Instead, people should also consider their own personal needs such as privacy, flexibility, personal satisfaction, housing conditions and so forth. Therefore, neither of the two alternatives is the perfect choice for everyone. However, buying has more appeal than

The increasing homeownership rate in the United States is a worthwhile policy goal. The housing economy creates jobs for American citizens as well as brings down the competitive qualities to purchasing a home allowing more middleclass citizens to spend money on houses. In doing so this drives the overall economy up in the United States.

The economic decline has possible home buyers, especially first time home buyers, scared to invest anything into the housing market. With the fear of another depression in the back of everyone's minds, some businesses are attempting to clarify the pros of home ownership.

Buying a house serves as a means of storing value and there are likely chances of appreciation in the value of the house. i.e. The value of a home will appreciate over time and if you decide to sell, you can earn a profit off the sale.

Macroeconomics is an excellent tool for the analysis of the housing industry as something like a capital good, as a home is considered to be, cannot easily be studied in a short-term platform. Real estate is a good that costs several times more than an average persons annual income, in the United States that number is typically 7 times as much, and in the United Kingdom that number is 14 times as much. Several factors of both supply and demand directly impact the housing market on a macroeconomic scale. (Business Economics, 1)

He contributes the stagnation of housing market, “America is not moving” in his own words, as an essential contributing factor to the upcoming housing crisis besides in lack of construction (2018). In particular, he sheds light on the statistics that a great number of US homeowners (79%) do not have the plan to relocate themselves in the upcoming years in which might intensify the extent of the housing crisis (2018). Thus, Kline concludes that since there are only insufficient amounts of new housing being introduced to the market, it emulates the difficulty for the new young buyers to become a homeowner (2018). With that being said, Kline’s statement is in line with the homeownership statistics published by the US Census Bureau (2018). With the statistical component for each age group of homeownership remains unchanged during last five years, householders age 65 years continue to be the largest constitute body in home ownership

When someone makes the decision to buy or rent a home they must consider the advantages and disadvantages of each. In buying a home the primary advantage is that you actually own it. You can do whatever you want with it. Also, you are building equity as the years go by. “People today have problems saving for their future” (CNN Money, 2014). However, when they buy a home, the

Housing demand includes household growth, real incomes, real wealth, tax concessions to both owner-occupied and rental housing, concessions to first homebuyers, returns on alternative investments, cost and availability of finance for housing and the institutional structure affecting housing finance provision (Yates, 2008). The growth in the number of households and in real income results in the increased pressure on housing demand.

This paper will address what to consider when buying a new home and what affects like marginal benefit, marginal cost, strength of the economy, domestic economy, and international trade, can have on situations and the conditions when making a decision to purchase a home. The principles of economics can directly relate to the purchase of a house, because you must consider all the possible affects your decision might have and the principles do a great job at helping you be more analytical with your decision and your reasoning to buy. When you consider marginal benefit to a home purchase you will be considering the benefit as a consumer you will have over the housing market of your choice in the area you live. If there are a lot of homes

Homeownership is one of the many aspects that make up the equation of the American dream. Buying a home for the first time brings pride of success and independency from the person who has this opportunity. This American dream is something that parents dream for their children from the time that the child is conceived. Being able to buy a home for the first time is an accomplishment and a dream of a lifetime. However, this dream isn’t cheap and cannot happen in a short amount of time. When a person buys a house there is a lot that goes into it such as knowing about your credit, your budget, and the type of home that you would like to purchase.

Starting back in 1997 when the residential prices began to appreciate into 2003, the rising home prices can be examined through economic fundamentals. These fundamentals explain the price of buying a home in relation to rentals and interest rates – meaning that the housing market was not overvalued. Post 2003-2004, the

In the financial, homebuilding and real-estate industries, the question of buying a home versus renting one prompts all sorts of calculators, graphics and pro-and-con discussions. It’s a perpetual topic that ebbs and flows according to interest rates and financial markets.

So you have decided you are ready to take the plunge into home ownership, now what? In today’s market, is investing in real estate still a good decision? Buying a home is a huge responsibility. The first thing someone needs to decide whether purchasing a home is right for them. People must evaluate their goals for the next thirty or so years and see if home ownership fits in with their goals. Are they tired of wasting all their money on rent? Or do they see home ownership proof of their independence? Some people turn to homeownership because they want the opportunity to be their own landlord. Whatever the case, there are several things to consider when delving into the housing market. People who are interested in home buying should make sure that they are properly prepared for purchasing a house for the first time. With the right preparation, purchasing a home can be a very positive experience.

It is not that the financial gain is the only reason a majority of American households aspires to own a home; homeownership has also to do with social benefits and these benefits relate to greater satisfaction in life.