Home ownership may be a lifelong goal for many, but that doesn't mean it's for everyone. Home ownership rates are currently high in Pakistan, but this was not always the case. Historically, families either needed to build their own houses or rent a house from someone else. Renting has many benefits, it is not bad decisions for people. The people who have financial crisis, cannot afford their land, renting may make more sense for their financial situation. Renting instead of buying a home has major advantages.

• No maintenance costs or repair bills

                     One of the advantages of renting a house is that there are no maintenance costs or repair bills. This means that when you rent a home, your landlord takes full responsibility for all renovations. If an appliance stops working or your roof starts leaking, you call the landlord, who is required to repair or replace it. Homeowners, on the other hand, are responsible for all home renovation costs.

• Access to equipment

                   Another financial advantage of renting is access to equipment that would otherwise be an enormous expense. Luxuries such as an in ground pool or fitness center are standard in many mid- to high-end apartment complexes at no extra charge to tenants. If a home owner wanted access to this equipment, he would probably have to spend thousands of rupees on installation and maintenance.

• No property taxes

                   One of the main advantages of renting over owning is that renters don't have to pay property taxes. Property taxes can be a big burden for homeowners and vary by county. In some areas, property tax costs can run into the millions annually. Although property tax calculations can be complex, they are determined based on the property's estimated value and the amount of land it is built on. As new construction gets bigger and bigger, property taxes can be a significant financial burden for homeowners. So it becomes difficult to get plots on easy installments having low income.

• No backup

                   Another area where renters have a better financial deal is start-up costs. Tenants usually have to pay a deposit equal to one month's rent. And that's mostly it. This deposit is theoretically returned to them when they move out, provided they have not damaged the rental property. When buying a home for a mortgage, you need to have a substantial down payment, usually around 20% of the value of the property. Of course, this down payment results in equity in the home, which only increases as the mortgage is gradually paid off. And once you own a vacant and clean home, you have a valuable investment that renters will never reach. Those who do not have money for a deposit are better off renting.

• More flexibility

                    Renters can live anywhere according to their choice, while homeowners are limited to areas where they can afford to buy. Living in an expensive city like Lahore may be out of reach for most homebuyers, but it is entirely possible for renters. Although rents can be high in areas where home values ​​are also high, renters are more likely to find an affordable monthly payment than home buyers.

• Few worries about property depreciation

                     Real estate values ​​go up and down. While this can have a big impact on homeowners, who has properties in the  housing society in lahore for investment it affects renters significantly less, if at all. The value of your home can affect the amount of property taxes you pay and the amount of your mortgage. In a rocky housing market, renters may not be affected as homeowners.

• Flexibility to downsize

                  Tenants have the option to downsize to more affordable living spaces after the end of the lease. This kind of flexibility is especially important for retirees who want a less expensive, smaller alternative that fits their budget.

• Fixed amount of rent

                      The amount you pay for rent is fixed for the duration of the rental agreement. While landlords can raise rent with notice, you can budget more effectively because you know the amount of rent you are obligated to pay. The same goes for homeowners with fixed-rate mortgages, which also allow for effective budgeting. However, adjustable-rate mortgages (ARMs) can fluctuate, often resulting in higher mortgage payments due to higher interest charges. Property tax is another variable that can increase costs for homeowners but does not affect renters.

• Lower insurance costs

                   While homeowners need to maintain home owner's insurance, the equivalent for renters is renter's insurance. This policy is much low cost and covers almost everything you own, including furniture, computers and valuables.

• Lower energy costs

                      Although houses can vary in size, they are usually larger than rental apartments. As a result, they are more expensive to heat and can also have higher electricity bills. Rental properties typically have a more compact and efficient floor plan, making them more affordable for heating and electricity than many homes.