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.