
Renting or buying: How to make the right decision
Whether it is worthwhile for you to rent or buy a property depends on a variety of factors. However, the real estate market is expected to ease slightly in the third quarter of 2023. Rental prices and purchase prices are converging again, which could make buying a property a profitable investment.
Advantages and disadvantages of renting
Renting an apartment has various advantages. As a tenant, you remain flexible. You are freer and less tied down, especially when it comes to moving to another location on short notice. In addition, the ancillary costs are lower and you do not have to worry about the care or maintenance of your property. However, the disadvantage is that rents on the rental market are also likely to rise further. In addition, tenants are subject to the landlord in many matters, who has the final say in crucial issues. For example, tenants have only a limited say in conversions and renovations.
Advantages and disadvantages of buying
As a homeowner, on the other hand, you have complete freedom. You can do whatever you want in your home. You can design your property exactly as you wish and carry out renovations and modernizations as you see fit. Once you have paid off your mortgage, you will save money every month and can continue to live rent-free in your home in your old age. Owning your own home is still considered a stable investment and helps to build up your assets. In addition, properties in good locations are likely to increase in value.
Renting or buying: which is cheaper?
Tenants pay a flat monthly rent but do not acquire any property over the years. When buying a property, most people have to take out a mortgage, but they pay this off with their monthly installments and thus gradually build up equity. As rents are likely to continue rising in the future, buying a property is definitely a good decision.
How to make the right decision
There is no one-size-fits-all answer to this question. Whether buying or renting is the better option depends on many factors. Ask yourself the following questions: How good is your financial situation? Would you prefer to live in an expensive location, such as a large city? Or do you prefer life in a rural area where prices are more moderate?
Often, decisions have to be balanced against professional commitments. If you need independence, renting is the better option. However, buying can be exactly the right choice for families and anyone who feels at home where they live. In any case, owning your own home offers space, freedom, and plenty of scope for personalization.
Are you looking for an affordable property and would like support in your search and finding the right financing? Contact us. We will be happy to advise you and refer you to an independent financial advisor.
Note
For reasons of better readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as 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 case.
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