With some countries’ residents, it is extremely necessary to buy their houses rather than renting them. This essay will first discuss how mindsets and frontier financial markets contribute to the situation, and I believe that owning a home is on the positive side because it brings a better life.
In some nations, people believe that owning a home is the signal of a successful person. When you first buy a house, it makes you feel like you have reached an achievement in your life. It also makes relatives proud of you because the value of the assets is often high compared to the income of a normal person. Frontier financial markets are also important considerations. When the financial markets are not developed, people are likely to allocate their money to real estate. It is because undeveloped markets do not have enough alternative assets, and the information is not disclosed transparently, so investors tend to distribute their money in real estate, which is expected to be safer in a recession. This explains why, in countries that have developed financial markets, the house-owning rates are often lower than elsewhere.
I think it is important to have your own house because it is the background for everyone to build a stable life. It is a basic need for residents to have accommodation for themselves and their families. The place where you live is associated with your jobs, your relationships with others, and also your children’s schooling. The obvious example is that the majority of the upper class choose to own their houses, but not to rent one.
In conclusion, people’s beliefs and the differences in financial market development explain why owning a house, rather than renting it, is especially important in some nations. However, I believe that buying your own place is a positive situation.