Provide a 8 pages analysis while answering the following question: Decision of Buying a New House. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is requ
Provide a 8 pages analysis while answering the following question: Decision of Buying a New House. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. A wrong decision can hamper the future life of people which may lead to several other problems. So, it is wise to invest in a house very systematically and after judging the potential of the house to give returns, either quantitatively or qualitatively.
There are pros and cons to owning a house. There are certain advantages which make it a much more lucrative decision to own a house but it is not to be forgotten that owning or possessing something valuable brings greater responsibilities. And there are several other aspects which may look disadvantageous while buying a home. So it is very important to weight the advantage and the disadvantage, before buying a house.
One of the great motivating factors to buy a new house is the feeling of possession and the sense of ownership. There are no restrictions to be imposed, unlike while in the case of renting. Anything could be done probably until and unless it violates the regulations of building and zoning. Also, there is a sense of privacy. Another financial implication of buying a house is that it increases equity. It is actually a building step towards the creation of long term wealth. In case of buying a house, a certain portion of the amount in mortgages is received back by the owner in the form of equity. That is not in the case while a house is rented, rent payable is the expense and builds no such equity. But the most important and lucrative factor of owning a house is the re-sale characteristic. It is actually an asset and an asset that reaps greater benefits with time. Most of the time, the sale is made on a much more amount than the buying price. Thus, it results in capital gain. Sometimes even in many cases, these gains are tax-free. And lastly, there are certain tax benefits that an owner of a house gets, in many cases the mortgage interests and the property taxes are deductible, meaning a decrease in the overall tax burden.
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