More people choosing to rent a house insyead of buying it. Although it gives you ultimate flexibilty and freedom from taxes and fees, it prevents you from wealth creation and might have restrictive rules set by the landlord.
On the one hand, people who rent a house have an opportunity to relocate easily. When the agreement with the landlord ends, the person doesn’t bother selling the property. If he needs to move away for a job or just wants to try a new neighborhood, renting makes it easy without worrying about a stressful home-selling process. Additionally, renting a house provides you a freedom from property taxes and homeowners association fees. They depress citizens in many countries and can be added to their annual expenses if you buy a house.
On the other hand, by paying a rent to your landowner, some people with average salary won’t be able to build wealth. Almost half of their budget goes to the rent payment and the rest is spent to the basic like food, clothing and education, if they are students coming from different city. In addition to it, some property owners can raise your rent, ruining your long-term financial plan. Moreover, there might be strict rules and limitations in terms of keeping a pet or a young child. For example, most nuclear families have a hard time finding a rent house in Kazakhstan, because landlords don’t like the idea of their house renovation being ruined by them. Therefore, renting a house may not be beneficial for some individuals.
In conclusion, more people choose renting, because they can move without stress and be tax-free. However, it restricts them from saving money by a possible instability and with strict rules.