Buy or rent: Why buying is worthwhile?

For most people, buying their own home is probably the biggest financial decision of their lives. And a project that entails financial obligations for decades. Especially in economically turbulent times, many people hesitate. Is buying a property still worthwhile?

In the last two years, prospective buyers have often been put off by the increased cost of living and financing costs, despite the fall in property prices. Although financing interest rates for property loans have currently levelled off again between 3.2 and 3.6 percent, many prospective buyers are still hesitant to purchase a property.

Keep an eye on individual factors and current market developments

It is impossible to say whether renting or buying is economically more advantageous in the long term. The right decision depends above all on the individual financial burden and one’s own possibilities. Generally speaking, it can be said that the general conditions for both options have deteriorated. Anyone looking for a flat or property should definitely keep an eye on current developments in terms of rents, purchase prices and interest rates. It may be worth consulting an estate agent at an early stage who can advise you according to your individual situation.

Renting: flexible and above all favourable?

Renting offers flexibility and the freedom to change your place of residence at will without making a long-term commitment. Tenants often benefit from lower service charges and are not responsible for maintaining the property. However, it should be borne in mind that rents tend to rise. Renting also means accepting certain restrictions: For example, you only have limited influence over renovations and must comply with the landlord’s specifications.

Ownership: individual and more favourable in the long term?

Owning a property offers a different kind of freedom: you can design and modify your home entirely according to your own ideas. Conversions and modernisations can be carried out according to your personal wishes and financial possibilities. As soon as the loan is paid off, you can enjoy the benefits of a rent-free life into old age. In addition, a home remains a stable investment that contributes to wealth accumulation. In a good location, you can even expect an increase in value.

How to make the right decision

In addition to your finances, think about where you would prefer to live. Would you prefer a city with higher costs or a rural area with generally lower property prices? Also consider whether a flat is enough for you or whether you would prefer a house. Also consider your professional situation. Do you need flexibility and frequent changes of location or do you prefer stability and want to finally settle down in your own four walls? A real estate agent can help you explore what is on offer in your region and advise you on the decision between renting and buying.

Are you looking for a new home? Then get in touch with us! We will be happy to advise you.

Notes

For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where this is necessary for the statement.

Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.

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