Many people are considering buying a home. But the decision is not always easy, after all, it is of great importance. It also seems that the framework conditions have been better.
In recent years, prices for home ownership have increased significantly, especially in German cities. There, the real estate prices seem to know only one direction, namely the way up. That is why quite a few buyers are asking themselves whether it is even worthwhile to buy a house or an apartment. Maybe it could be better to do without a home and continue to live for rent.
Whether it actually makes sense to buy a home, can not say flat rate. If you want to know exactly, you must recalculate and check for yourself whether a purchase pays off. It has to be determined which costs are incurred now and which costs result from the acquisition of a home. At least it can be answered in such a way, whether a property purchase from a financial point of view is worthwhile.
Buy and rent in comparison
It usually turns out that buying a home is a good choice. Reason for this are the permanently missing rental payments. Of course, there are years to pay loan installments, but then it is over. On the other hand, there are additional costs that keep recurring, in particular the property tax and, of course, the costs of maintaining the property.
The tenant, however, only makes his monthly rental payments. However, it should be noted that the rent is calculated very similar or the landlord in the costs already taxes, possible repair costs, etc. taken into account.
In general, it has been true for decades: Rents are rising faster than pensions. This means that in old age an increasing part of the rent has to be spent on the rental payments. Thus, pensioners are less and less money available for other things. If you live in your own home, you do not have this problem.
Not only the purchase prices are rising
As mentioned in the introduction, many prospective buyers are unsettled because property prices have risen sharply in recent years. But the development in rents is not much different. Who lives for rent, although not constantly receives a rent increase, but especially with tenant changes is usually pitched strong. In addition, the increases in the long term can not be avoided.
Last year, the Good Finance commissioned real estate companies to determine whether it would be better to buy residential property or continue to live for rent. The result of the study is clear, the costs of living in one’s own home are much lower than the rental costs.
However, the experts note that the cost advantage can vary greatly and is significantly influenced by the location of the property. In the overall average for Germany, the cost advantage of using residential property amounts to 41 percent. The range of benefits ranges from 13 to 67 percent, depending on where you live.
In addition, the experts found that the price trend is shifting. Increasingly often, a significant increase in real estate prices is also to be noted in middle-class cities. More and more prospective buyers are looking around in the middle-class cities – in the hope that they will be able to acquire excellent real estate for a reasonable price there. However, nobody should be unsettled by this development, because the experts do not see signs of the formation of a bubble.