A decision that I had to make was to buy a house or not. Prior to getting
a house I was living in apartments. It wasn’t a bad option but there were
some things that I didn’t like about living in a building with multiple
people in it. One of the reasons was that the neighbor that lived above
me was hardly there, he was deployed so it was largely silent. However,
he moved a new person moved in. two adults and two terribly snot
nosed kids with terrible attitudes. They yelled swear words outside of
their windows and their parents didn’t do anything about it. They also
had 3 big dogs that they did not pick up after and a little dog that I only
saw once, so not sure where that one was going to the bathroom.
Remember those 3 dogs? They didn’t pick up after them, but heaven
forbid, I forget one little turd from my dog they would be pounding on
my door to tell me they stepped in her poo, but when I pointed out the
huge turd piles they left behind, they were mums the word. Terrible
people that didn’t know what a bathmat was and the ceiling in my
bathroom leaked multiple times and had to be replaced 3 times and
when they left, they left the back door open so that it froze the water
line and le it burst, and that was the replacement of the kitchen ceiling.
They also had to cops called on them multiple times as well. The
absolutely trashiest people ever. After those terrible people I did not
want to have to go through that again. So, I bought a house. The only
issue I have right now is the field mice that make their way into my
house and some roaches that I am trying to get rid of due to one of my
neighbors fumigating their house across the street. Not only that my
monthly pmt is cheaper than my month rent was and there are no
inconsiderate people living above me either.
The first step in my decision making was “identifying the problem and
uncertainties” (Datar, 2018) The problem was inconsiderate neighbors
that made living an absolute nightmare and soured my renting
experience.
The second step was “obtain information” (Datar, 2018). I looked into
the renting prices of other apartments or houses, and I looked at the
costs of getting a house. In the end I decided that buying a house would
ultimately save me more not just in money but sanity as well. In my area
renting is not that cheap all things considered my city is nicknamed junk
town for a reason. And if its cheap its probably got a drug dealer living
somewhere near it.
The third step was “ make predictions about the future” (Datar, 2018).
Honestly there was really only two options, I could continue to rent and
potentially get another terrible and rude neighbor, or I got buy a house
have the space I need and want without having to worry about people
above my head.
The fourth step is “ make decisions by choosing among alternatives”
(Datar, 2018). I chose to buy a house as the only thing I have to worry
about with my payments is escrow, with my current job () I know what
causes payment increases and therefore know what to do to try to
mitigate the increases to my payment. I also don’t have to wait forever
and a day to get something fixed, (they never did fix the window in the
2nd bedroom at my old apartment).
The fifth step was “ implement the decision, evaluate performance, and
learn” (Datar, 2018). After multiple viewing of houses and going over
budgets I finally picked a nice two-bedroom house in a non-flood zone
(no flood insurance for me) with a nice walk-in shower that also came
with a empty lot right next to me, cool (but also field mice L). Haven’t
looked back since.
The opportunity cost is that with a house if something breaks its my
responsibility to fix it but with an apartment all I had to do was call it in
to the main office to get it fixed, so that would mean I could save on
money that I would have used on repairs by myself.
The qualitative and quantitative factors both played a part in my
decision. The quantitative factor being the money that was spent on
closing costs and the down payment that went into the house, the time
that was taken into looking at different houses and the multiple
inquires into my credit that were made to get a good interest rate. The
qualitative factor was the risk of getting another neighbor that was as
terrible as those people that ruined my renting experience. As well as
the fact that I didn’t need to pay for repairs. I took both of those factors
into consideration and decided that the risk of owning a home far
outweighed the risk of getting another shitty neighbor with the owners
taking far too long to fix something in my apartment. As I said they still
hadn’t fixed the window that was in my 2nd bedroom that was like that
when I moved in, and it took quite a while for them to replace the ceiling
in the bathroom the 3 times they had to do it and the kitchen ceiling
took some time to do as well. The hole in the kitchen tiles was also not
patched for about 3 months even though I pointed out before I moved
in. all in all I think I made the right decision in getting a house.
References
Datar, S. M., & Rajan, M. V. (2018). Horngren's cost accounting: A
managerial emphasis, global edition, 16/E 12. PEARSON EDUCATION
LIMITED.
