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 countries believe that having a home is a crucial thing while
others contradict this
idea. In my opinion, this
is a result of our old generation's perspective and I think this
speculation will lead to another problem.
Our parents tend to think property, especially a house
, is an asset and a good investment
instrument. As a result
, the millennials were influenced by this
thought as well and now compete to buy it as soon as possible using instalment schemes that impose interest increments gradually which are usually already above the asset value. For instance
, banks will implement 12% interest per year to purchase a residence meanwhile the actual price is only 10% increased. That means buying a house
with an instalment scheme is no longer a good investment
since it cost above than it should.
Since a home already costs a big amount of money, many middle age people
are unable to afford it, and this
is understandable. But, our society is more likely underestimates people
who still lease their building. Our old young then
feel the pressure and feel stressed and depressed if unable to own a house
. This
situation is not good for mental health. In fact, renting a building actually has more advantages. For example
, since it will only cost cheaper than buying one, the budget can be allocated to a better investment
such
as stocks, deposits, etc which will provide a bigger profit rather than paying instalments for a house
.
To sum up
, old-school thought is what brings to the idea of the importance of having a home. However
, if not achieving it, some people
might be pressured and bothered psychologically. Furthermore
, purchasing a house
is a worse investment
option compared to securities.Submitted by nurikasetyar on
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