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?

Many people in several nations believe that having a

house

is essential compared to only renting it. I personally think that

this

is a misleading perspective

that is

developed by old people since a

house

’s

price

is not worth the money nowadays.

In contrast

, leasing a residence Since a long time ago, a

house

has been considered a good investment by old generations and we were influenced by

this

thought.

However

, the

price

of a

house

is already costly and unrealistically expensive.

As a result

, the young generations with low-middle wage ranges can not afford it in cash and need to purchase it with an instalment scheme

instead

, which is imposed to a high interest and beyond its actual value.

For instance

, a

house

instalment scheme forces to pay the rising interest of around 10-12% per year when the actual

house

’s

price

only increased by 9-10% annually. People’s expenses on a

house

are actually higher than the

price

of it. That

also

means that a

house

is no longer a great investing instrument because once it is sold, the selling

price

will be less than the buying

price

. In fact, renting a

house

costs less than buying it.

This

option could be benefited more since it allows to have a better cash flow.

For example

, the budget could be allocated to more profitable investments

such

as stocks, or deposits which will assist to grow savings.

This

will result in a healthier financial situation for a person.

To sum up

, the old-school thought is what brings to the idea of the importance of owning a home

due to

its potential profit as an investment.

However

,

this

idea is not compatible anymore

due to

a

house

price

with instalment payment costs being higher than they should be.

Furthermore

, purchasing a

house

is a worse investment option compared to securities.