* In some countries, owning a home rather than renting one is very important for people. *Why might this be the case? *Do you think this is a positive or negative situation?

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The housing
market
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, as one of the main drivers of the economy, has been at the centre of the attention of different stakeholders in the recent century. Different government policies,
people
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's cultures and economical circumstances will lead to different approaches of citizens toward housing. Following I will elaborate that, how uncertain housing markets could be one of the possible causes for
this
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unpleasant situation, in which the citizens had to try to buy a
home
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rather than
rent
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it.
To begin
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with, the most simple reason for
such
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preference that comes to my mind is the unstable housing
market
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, especially when renting is not affordable.
In other words
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, some countries, like Iran, with distressed economies, so accelerated the
rent
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costs that without owning a
home
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two-
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two-thirds
show examples
third
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of a household's average budget shall be allocated to defray
rent
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. In case
rent
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cost shows an increasing trend in some consequent years, citizens often decide to manage to buy a house through leasing or
mortgage
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, because through
this
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solution not only they will be protected from drastically increasing rental costs, but
also
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they could own the
home
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after repayment period of the
mortgage
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and so it could be as a legacy for their children or even could be used for joining reversed
mortgage
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contracts after retirement.
Such
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status of the housing
market
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neither is pleasant nor stable, particularly when excess demand for house ownership exacerbates the situation through a dramatic increase in real estate price and
rent
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,
consequently
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. To exemplify, from 2012 up to four consequent years, the housing
market
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of Tehran, the capital of Iran, experienced skyrocketing rental fees, with nearly 40% annual growth, without appropriate changes in the average salary of Iranian
people
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.
Therefore
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, in 2017 most
people
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moved ahead toward buying houses which led to excess demand and the
next
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increase in housing prices. To have a fair indicator, the float annual interest rate of
mortgage
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bonds hit 48 per cent, which was unprecedented in recent forty years.
This
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has reinforced growth in
rent
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costs and presently most economists believe that, though some other externalities have initiated
this
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loop, in case the government does not solve or mitigate it,
this
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could lead to the total collapse of the Iranian housing
market
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.
Therefore
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, I believe
such
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situations in either Iran or other fragile economies, could be named catastrophic situations. To conclude, neither I nor anyone else could not raise a deterministic answer about the reason behind the preference for
home
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ownership rather than renting,
however
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, drastically increases and the uncertain renting prices could be one of the main cases in that
people
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decide to own a
home
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instead
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of renting it.
Submitted by alirezamaleky73 on

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