Taking Out Mortgage for a House-Worth or Not Worth

Taking Out Mortgage for a House- Worth or Not Worth?
With housing prices soaring in metropolises nowadays, buying an apartment is becoming a luxury many people cannot afford. If young people want to buy an apartment in first-tier cities such as Beijing and Shanghai, they unavoidably have to exhaust their parents’ savings to make a down payment. What is worse, they have to save up every penny to pay off the mortgage in the later years after they buy the house. Even so, many people still argue that an apartment is the necessity of life and they will buy it on all accounts. From my perspective, there is no need for young people in big cities to take out mortgage for a house at all.
For one thing, housing prices in big cities such as Beijing and Shanghai are too exorbitant to afford. According to Beijing Municipal Statistics Bureau, the per capita annual income in 2008 was 44,715 Yuan, while apartments are selling for an average 20,000 Yuan per square meter. That is to say, if a young man with a monthly income of approximately 4000 Yuan wants to buy an 80 square meter apartment in Beijing, he has to save for 400 years to collect 160 thousand Yuan. If he decides to buy the house, he has to pay 480 thousand Yuan as the down payment and a mortgage of 3000 Yuan per month for 30 years disregarding the rate. In this sense, there is no way ordinary people can buy a house in big cities by taking out the mortgage.
For another thing, young people are better able to enjoy their life if they do not have to save up every penny they earned to pay off the mortgage. Instead of buying an apartment, they can rent it and save up a large amount of money. It cost one 1.6 million to buy an 80 square meters apartment while it only cost 0.9 million Yuan to pay for a house of 1500 Yuan monthly rent over 50 years. By renting apartments, young people are less likely to be hard up for money. They no longer have to chew on stale baguette and swallow milk that has nearly gone bad. They no...