Inflation is matter of concern for certain number of people because of low income levels which makes them mentally prepared to reside in rental properties whereas others, despite of high prices, chooses to stay in their own house as they consider it as an investment. In my opinion, preference of place is highly dependent on affordability and people are highly accustomed to act on basis of their social class and status.
In comparison to middle class, rich people are leaned towards living in their own house because of steady income. Besides, not only they can build it with customized ideas they can also consider it as a major source of investment. Additionally, if house is bought on a loan, monthly EMI will be equivalent to the amount of monthly rent of the property, which makes them sensible enough to own a house rather than renting one. For instance, net worth of a business tycoon in India is worth millions half of which is derived from investment in properties.
Whereas, economically backward people are prepared to stay in low rental properties. Usually, such class can hardly afford meal once a day which leaves them no choice but to accept the reality. Additionally, average earning people can hardly suffice throughout the month due to low earning capacity which delay their dream of having own house so rather than grieving about it they choose more practical approach of renting a place. In fact, inflation rate in countries like India is ~12% p. a. on an average which discourages people to afford their own house.
In conclusion, people opine about their place of living depending on their income capability and lifestyle.
Inflation is matter of concern for certain number of
people
because
of low income levels which
makes
them mentally prepared to reside in rental properties whereas others,
despite of
high prices, chooses to stay in their
own
house
as they consider it as an investment. In my opinion, preference of place is
highly
dependent on affordability and
people
are
highly
accustomed to act on basis of their social
class
and status.
In comparison
to middle
class
, rich
people
are leaned
towards living in their
own
house
because
of steady income.
Besides
, not
only
they can build it with customized
ideas
they can
also
consider it as a major source of investment.
Additionally
, if
house
is
bought
on a loan, monthly EMI will be equivalent to the amount of monthly rent of the property, which
makes
them sensible
enough
to
own
a
house
rather
than renting one.
For instance
, net worth of a business tycoon in India is worth millions half of which
is derived
from investment in properties.
Whereas
,
economically
backward
people
are prepared
to stay in low rental properties.
Usually
, such
class
can hardly afford meal once a day which
leaves
them no choice
but
to accept the reality.
Additionally
, average earning
people
can hardly suffice throughout the month due to low earning capacity which delay their dream of having
own
house
so
rather
than grieving about
it
they choose more practical approach of renting a place. In fact, inflation rate in countries like India is ~12% p. a. on an average which discourages
people
to afford their
own
house
.
In conclusion
,
people
opine about their place of living depending on their income capability and lifestyle.