Principles for buying a homeThe Principles that I think would play a major role in my decision making in purchasing a new home.
Well there are actually two of them. The first one is People Face Trade-offs. That means to get one thing that I like, I have to give up another thing that I like. For example if I want to buy a house then I will have to give up going out to eat all the time. How this influences the marginal benefits and marginal cost One thing I need to make decision comparing the marginal benefits and marginal cost. For example If I stop going out to eat all the time, I would be able to save the money from eating out, then I would have enough money to buy that house.
The next principle that would play a role in my decision is the cost of something is what you give up to get it: like I said before, giving up going out to eat all the time to save up to buy that new house. Having a new home cost a lot of money, so not eating out would help me save the money I would need. Have a home has benefits to. Bigger place to live for my baby that is one the way, the monthly payments might be as little as what I am paying for that studio apartment. Those are the two principles that would play a major role in buying my new home.
