Buying or renting: Which form of housing suits you?

Buying your own property means more than just creating a home - it is also an investment in your own future. Instead of paying monthly rent, which goes permanently to the landlord, the money from the purchase goes towards building up your own wealth. Home ownership can thus offer long-term financial security - be it through rent-free living in old age or through possible increases in the value of the property.

However, renting also has advantages: It offers flexibility, a lower initial outlay and can make more sense at certain stages of life.

Our article presents the advantages and disadvantages of the different options and provides guidance to help you make the right choice - with a view to finances, life situation, market environment and future prospects.

Financial aspects: Which is worthwhile in the long term

The financial aspect is often the decisive factor when deciding for or against one of the two options. If you want to buy a property, you have to be prepared for significantly higher initial expenses than tenants. In addition to the purchase price, there are additional costs such as land transfer tax, notary, estate agent and financing. Reserves for future renovations to your property are also part of a realistic calculation. We explain in detail how high these ancillary costs are and where there is potential for savings in our article "Property transfer tax: exploit savings potential & reduce costs".

In contrast, renting mainly causes ongoing costs: these include the monthly basic rent, ancillary costs and a deposit. The initial outlay is therefore lower, but your expenses add up over the years.

Living situation: flexibility vs. stability

In addition to your budget, your personal living situation also plays a decisive role in the question of whether to buy or rent.

Renting can make particular sense if:

• professional changes are likely
• life or family planning is not yet complete
• there are uncertainties regarding financial development

If you have long-term plans to settle down or are already thinking about retirement provision, you can create a stable foundation with home ownership. Owners enjoy more creative freedom and build up assets at the same time.

You can find more information on suitable financing in our real estate financing calculator.

Market situation: When is it worth buying a property?

The current development on the real estate market should also be taken into account when making a decision. After years of rising prices, the real estate market has calmed down noticeably in many regions - which opens up new opportunities for prospective buyers. In some locations, there is currently more choice and room for maneuver when negotiating prices.

At the same time, interest rates play an important role: financing is particularly attractive when interest rates are low. Rising interest rates make potential loans more expensive and can increase the monthly burden.

Rent prices are also continuing to develop and are rising steadily, especially in sought-after residential areas. This means that in the long term, ownership may be cheaper. Those who buy property pay higher acquisition and financing costs at the beginning, but benefit in the long term from calculable expenses and the prospect of rent-free living in old age. While tenants make permanent monthly rent payments - often with regular increases - this burden is eliminated for owners once the loan has been repaid in full.

In addition, each installment paid not only finances a roof over your head, but also builds up your own assets. Unlike rent, which is considered an ongoing expense, the property remains a tangible asset - with the potential to increase in value, provide security in old age or be passed on to future generations.

In the long term, ownership can therefore not only offer more stability and independence, but also be the better decision economically - especially if the property is paid off early.

You can find an up-to-date overview of regional purchase and rental price trends in our market reports.

Future planning: home ownership as a retirement plan?

Looking to the future plays a key role when deciding where to live. Property ownership is often a building block of private retirement provision. After all, if you have paid off your property by the time you retire, you can live rent-free in old age. In many cases, home ownership is also an inflation-proof investment.

On the other hand, renting can also offer advantages in old age: You remain flexible as a tenant and have no responsibility for major repairs. However, rental costs are permanent - even if your income falls in retirement. An initial financial assessment is provided by rent-or-buy calculators, which compare the costs of both forms of housing.

Conclusion: Buying or renting - which is better for you?

Buying or renting - both options have advantages, depending on your life situation and future plans. If long-term stability, independence and wealth accumulation are important to you, you are well advised to buy. Tenants, on the other hand, benefit from flexibility and lower entry costs - especially in dynamic phases of life.

Are you looking for support with your decision? We will be happy to assist you. Use our contact form for a personal consultation - together we will find out which solution suits you best.