Australia Organization Behavior (Essay Sample)

Home Purchasing Decisions
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Home purchasing decisions
Home purchasing decisions are not any simple to make because there are several factors that have to be factored. As indicates in the case above, the household income has to be factored, and the responsibilities that the couple has based on the gross household income. Besides the logic that a couple may apply in wanting to rent or buy a home, it is best that they get to financial analyst to help them make an informed decision. Analysts take all aspects into consideration and give the best advice to be followed by those seeking advice. Further, in this context, I will discuss the paper as the financial analysts and give Candice and Cameroon the best option supported by details.
The initial thinking and advice to the couple is; neither renting nor buying is bad. It all depends with the choice and the taste that the couple may have. Each of the aforementioned has its advantages as well as its disadvantages. The reasoning is based on the idea that, owning a home as most may not have thought is accompanied by expenses. Some of the expenses as may indicate include: property taxes, payment of insurance, sprinkler installation, gutter cleaning, HVAC repair and power washing. They are all expenses, and that does not mean that owning a home is not worthy or is not any better than renting a house (Money Crashers, 2015). So is to renting, it does not mean that the person giving out money to stay in an apartment is throwing away money. They do so in a good course for the accommodation services that they get. The accommodation services they get may be based on a choice and not because they cannot afford owning a home.
Advantages of renting and Disadvantages of Owning a Home
David (2000), explains that, the first issue is mobility. As a young couple, they may get better paying jobs to other parts of the world. Ending a lease agreement may be easy since it is easy to renegotiate. In the case that they are able to renegotiate, they are can wait for the time for which they have leased the house to elapse and then they leave to the place that they want to live or where they would have got a better paying job.
In the case of owning a home, the couple will be tied to relocate to any other place in the world. This is informed by the fact that, it is impossible to avoid paying mortgage. The only possible way of doing so is through reselling the house to another willing candidate. The process is long and tedious and may not be the most favorable (Francis & Eduardo, 1995).
According to, Thomas, Peter, and Zachary (2015), the second advantage comes with flexibility in pricing. Assume that the couple that is Candice and Cameroon gets a better paying job, then they are able to move to a better house that costs more. Or in the case that the two or either of them gets laid off from job that means that their gross house hold income goes low from the current $82,000.If with the current gross they have managed to save $17,000, that means, it would be difficult to stay in at the same rental house and manage to safe anything factoring they have two young ones to feed. That flexibility to move to a house that they can afford gives renting a tick for them.
It is not so for the home owners, there is nothing like price flexibility to them. The house owners are the type of people who are locked into making montage payment for a given period of time. Even if it was adjustable to lower rates that would mean that they are tied to a debt for the larger part of their entire lives (Francis & Eduardo, 1995). They deserve to enjoy financial freedom.
Renting has lower costs of operating and it is easily manageable compared against the income of the couple (David, 2000). The good thing with the rent is that it is a onetime fee that has to be paid to the owner of the property leased.
It is different for owning a house as opposed to what most think. Most think of owning a house as percentage that will be deducted from their income for a given period of time and then they are good to go (Money Crashers, 2015). No that is not the case, the couple in the case that they choose owning a home they should know that besides the total amount that they will pay, also there are other expenditures that they are supposed to cater for on a yearly basis. For instance if the couple chooses to buy a home that has the cost of $500,000, then, it is likely that they will need to put aside $5,000 aside each year for expenditures such as repairs.
Advantages of Owning a Home and Disadvantages of Renting
Potential for appreciation is a factor that would inform the choice of buying a house for the couple under discussion. However, it has been found that most couple has used this reason for wrong purposes of defending their idea of buying their homes. That may not be case always, and the couple in case that they feel that they should buy they should consider the expansion of the place that they live, and that of the neighbor hood (Money Crashers, 2015). Is there any growth that assures future appreciation of the property that they purchase today? That is not subject to be enjoyed by those who rent because they cannot count value for that which they do not have. Value increase too may translate to high leasing costs for those renting.
Inflation protection plays a good role for those who buy homes and so can the couple enjoy of it at the current economic conditions. The couple can enjoy the constant payment of mortgage with a flat rate even in the case of inflation which leads to higher interest rates. This however happens to those who are employed and with a salary and using the fixed rate mortgage plan. This is not a luxury to be enjoyed by those who rent apartments (Thomas, Peter, & Zachary, 2015). In the case that there is inflation, the same is passed by the owners of the property to them through raising the prices. They experience the pain of inflation through hiked prices by the home owners.
Finally, home owning is attached to emotional satisfaction. This refers to the case whereby the couple will have the satisfaction of doing whatever they want to their home at whatever time they deem fit (David, 2000). They may decide to do changes to the ay it appears, and also have a garden to plough without the fear of renewing a lease because they have none to renew. So is not for those who rent. They all live in the fear of having their lease not renewed out of doing what they love.
However, enough of the discussion is vivid that the couple has to make decisions based on the given aspects. Although, besides all these, buying versus renting is a matter if preference that individuals have (Money Crashers, 2015). So, the couple may go for the preference that they have based on priorities they have in their list.
Current economic environment
The US is recovering from seven year recession where unemployment rate was high. Currently, that means that unemployment rate is low. That translates to better living conditions for most people in the US (Thomas, Peter, & Zachary, 2015). In the case that the coupled decides to go for owning a home, at these economic conditions it is best to review w...