This section presents a professionally wirtten variation of your essay and highlights the differences.
Instead of renting a house, people tend to have their own house in some countries because of rising inflation as well as counting on whose house as an investment. Although there are some reasons for people live in these countries to do so, it can have down side effects on the economy, leading to more inflation.
In some countries, people prefer to own rather than rent houses due to rising inflation and the perception of property as a secure investment. While there are valid reasons for this preference, it can negatively impact the economy by exacerbating inflation.
Countries with increasing inflation offer less options to people to invest in, one of which is purchasing houses since it is a safe way to save their money. Simply put, when individuals buy property, not only do they maintain the value of their currency because of increases in whose house value, but they also do not have to waste their money by paying monthly or annual rent price. Consider a retired person who receive their pension after retirement, as an example. They can buy a house with their budget and by doing so, they can both keep their money and inherit their house for their children at the end. Therefore, they can keep going with the inflation with the least pressure of its drawbacks.
Countries experiencing high inflation often provide limited investment opportunities, making property ownership an attractive option for preserving wealth. When individuals purchase houses, they not only protect their money from inflation through rising property values but also avoid ongoing rental expenses. For instance, retirees using their pensions to buy property can safeguard their savings while creating an asset to pass on to their children. Consequently, they mitigate the financial pressures caused by inflation.
On the other hand, when the majority of people invest their fortune in property, they will be detered from contributing in other parts of a country’s economy. The amount of money which can be injected into manufacturing and industry, leading to turning the wheels of industry, recruiting more individuals as well, would easily go through buying houses. However, providing a situation that people can trust authorities to share their money in such fields requires a dynamic economy controlled by the government.
However, excessive investment in real estate diverts funds from other critical sectors of the economy. Money that could support manufacturing and industrial growth, generate employment, and stimulate economic activity is instead channeled into property purchases. For this trend to shift, governments must establish a stable and trustworthy economic environment where citizens feel confident investing in diverse sectors.
To coclude, while people in some countries prefer to buy a house rather than being a tenant, I am convinced that this would be economically inefficiant for the progress of manufacturing, despite the infaltion which those countries may suffer from. But the onus is on the government to create a trustworthy situation that people can rely on.
In conclusion, while homeownership is a rational choice in high-inflation economies, over-reliance on real estate investment hinders broader economic progress. The responsibility lies with governments to foster conditions that encourage investment in productive industries.