Introduction
Economics is a broad term which has its several dimensions that’s why there are numerous definition on this particular field which has been proposed by many authors in the diverse manner. Adam Smith and Alfred Marshall are the big names in the world of economics and are predominantly considered as the father of economics. In accordance to them, “the name of economics is all about earning and spending money or in other way, economics is entirely based on how to generate money and make better use of it (McEachern, p.13). Therefore, this is the most active concept which has been revolving in almost every sphere of life.
There are a number of concepts that come under the ambit of Economics and among them, there is a name of affordability and housing strategy is one of them. Affordability is not an easy thing to do, and there are number strategies that have to be in line in order to afford the same thing in a well organized and perfect manner. The main perspective of this assignment is to analyze the effectiveness of the Housing Market of a chosen destination. The chosen destination is Salt Lake County. There are three different scenarios, which have been given in the same assignment, and it is required to have the most effectively and wonderful aspect from all of these three scenarios to assess and accept a single one effectively. In the next section, a small description of the chosen state is described followed by other analytical vision.
Salt Lake County: A Detailed Overview
Salt Lake County is a country specifically located in the United States (U.S) of Utah. The total population of the country was 1,029,655 in the year 2010 as per the consensus. In terms of population, the country is known as the most populous county of the Utah state. The largest city of the State is Salt Lake City, which is also known as the state capital (Gaquin, p.33).
Salt Lake County occupies the Salt Lake Valley as well as the parts of the surroundings mountains which has a name of Oquirrh Mountains to the west and the Wasatch Range to the East. In connection with the same, Great Salt Lake is partially within the northwestern section of the county. Ski Resorts are some of the famous things and places done in the country and due to this particular thing, the Lake has its own importance and significance. Salt Lake County is basically a part of the Salt Lake City which is one of the most effective Metropolitan Statistical Area as well as the Salt Lake City. The Salt Lake City founded in the year 1852 and at the starting period of 20th century, the population of the county increased tremendously well along with the amount of businesses, as well. There was a great airport associated with the Lake, that is one of the most interesting and beautiful places here in the United States (US). The rate of the property in this particular country is high, and the assignment requires analyzing the same from different aspects.
The Scenario: Summary
The entire scenario has been designed accordingly and on the basis of the selected place which is Salt Lake Country, which is one of the most important counties in particular. There are three different scenarios which have been associated with this particular assignment are
- Moving back to the parents again with Rent Free life
- Renting by yourself and stay single
- Get Married and Rent an house on 30 years of Mortgage
First Scenario Analysis
The first scenario, which has been highlighted in this particular analysis, is all about moving back to the parents with living a rent free life. In this situation, 20% of the total income would have been given to the parents on the basis of contribution income. Currently, I am not married and got earning of $ 9.43 per hour. If I Worked for 8 hours a day and 5 days a week, then my per day earnings and per day month earnings would be like this
= 1,509 * 20% = 302 $
Total Savings = $ 1,207
Advantages
- The biggest advantage to back to the parents is that no rent could have been giving to them, hence it is one of the most cost efficient one
- Only a minimal amount would have been given to the parents on the name of contribution amount to only 20% in particular
Disadvantages
- The life style cannot be changed of the person because of having limited amount of money in the hands
- Decision making cannot be enhanced effectively and accordingly by emphasizing only on the decision of the parents.
2nd Scenario Analysis
The second scenario which has been taken into consideration for the same analysis is that, the person has a chance to live along without any influence. According to the case, it is required to live alone in this scenario with a specific amount of money to be rented. The amount would be rented accordingly and effectively at the same time. This particular second scenario is one of the most important scenarios which most of the people wishes to circulate and accept, but it has numerous pros and cons as well. The computation of the same is mentioned below in details.
Per Year Earnings would be = 1,509 * 12 = $ 18,108
The rent for a single room with single bedroom is $ 30,000 per year or per month it would be
= $ 2,500
NO SAVINGS
Per month rent is extremely high in this particular scenario, and I am also supposing that the operating expenses in this particular scenario would be like 40% in total. Mortgage cannot be done in this particular scenario as well because, in the city, it is not allowed for a non married person to own a certain property, which is quite problematic for a person in total.
Advantages
Decision making is easy
Disadvantage
High Amount of Liability
Let’s now move towards the last scenario which is the third scenario of the case study.
3rd Scenario Analysis
According to the case, the person has a fiancé as well, who has the capacity to earn as likely the same as me, like 1,509 per month. By accumulating the income of both of us, could enable us to place on a certain position accordingly and effectively simultaneously. The computation related to the same scenario with two different individual incomes is mentioned below
The rent for a single room with single bedroom is $ 30,000 per year or per month it would be
= $ 2,500
After giving the rent, they both have = 3,018 – 2,500 = $ 518
40% Expenses would be = $ 207
Net Savings = $ 311
Advantages
- Accumulated Income of two individuals
- Liability have been divided
- Decision making could be enhanced
Disadvantage
- The biggest disadvantage of this particular scenario is that saving is too short
- Mortgage would not give substantial benefit to them because both of them have very low income (Hughes,p.44)
Conclusion and Suggestion
There are three different scenarios, which have been given in the same assignment, and it is required to have the most effectively and wonderful aspect from all of these three scenarios to assess and accept a single one effectively.
Works Cited
Gaquin, Deirdre A. County and City Extra 2010: Annual Metro, City, and County Data Book. Dallas: Bernan Press, 2011.
Hughes, James W. Methods of Housing Analysis: Techniques and Case Studies. London: Transaction Publishers, 2012.
McEachern, William A. Economics: A Contemporary Introduction. New York: Cengage Learning, 2011.
Paul J. Maginn, Susan Thompson, Matthew Tonts. Qualitative Housing Analysis: An International Perspective. Chicago: Emerald Group Publishing, 2008.
Sylvia J. T. Jansen, Henny C. C. H. Coolen, Roland W. Goetgeluk. The Measurement and Analysis of Housing Preference and Choice. Miami: Springer, 2011.
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