3 Discussion Questions, 3 Student Reponses and 1 Short Assignment

ECO110: Taking Charge of Your Economic Future

Week 6 Discussion Question

Part 1: Loans and Housing

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For many Americans, buying a home is a goal. But it is also expensive compared to renting. Explain some of the advantages and disadvantages of buying a home compared to renting. What are some of the key issues a first-time homebuyer should consider?

Additionally, describe a housing-related goal that you may have for yourself. What types of financial information might you need to be able to create a starting point for reaching this goal?

Also, please respond to at least one classmate’s post.

Part 2: Student Response:

STUDENT: Vatleria Thomas

RE: Loans and Housing

Class,

For me, owning a home has always been more beneficial than renting. I was looking into buying a forever/retirement home around last year. Now this year would have been the opportune year to purchase because of the interest rates but the economy was too shaky for me plus home prices went up. I’ll just put this off for another year or two and save until I have a better feel for the economy. Owning a home can be one of the biggest financial decision to make in life. Advantages of buying a home are stability, fixed mortgage rate, tax benefits and most of all a long-term investment. Some disadvantages are liquidity, maintenance costs, and property value can go up and down. When it comes to renting the advantages are no responsibilities for repairs and rent can be lower than a home. The disadvantages are the rent my increase, no cosmetic improvements or change of the property. Even though home prices went up this year but there are some great deals out there for first-time homebuyer with this interest rates being at record low rates. If you can afford a new home as a first-time buyer I would jump at the opportunity.

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