Lots of people dream of owning their own home. Despite current uncertainties and rising mortgage interest rates, the demand for home ownership continues unabated. But when is it worth buying a property, and when does it make more sense to rent? We set out the pros and cons of each.
Buying your own home only becomes a possibility once you’ve saved up some money. If you’ve managed to do that, it’s still worth getting a full picture of everything involved, as home ownership also comes with tax changes and certain costs that you wouldn’t have to pay as a tenant.
Despite rising property prices, owning your own home usually works out cheaper than renting. For a long time, this was due to historically low mortgage interest rates. Although these have now risen again slightly, property prices remain as high as ever. This means that, in terms of costs, there is less and less difference between owning a property or renting one.
Have you been saving up and are now thinking of buying a property? If you meet the affordability requirements, owning a home works out cheaper than renting in the long run. You also have the option of selling the property if you need to, which frees up your equity for something else.
Both have their pros and cons. It’s important to weigh up what works best for you. If you want to stay flexible and don’t want to be tied to one place, renting is definitely the better option. However, if you’re committed to staying in one place and have the necessary capital, then owning your own home will prove more profitable in the long run.
Whatever you decide, you can find your dream home in an instant with Engel & Völkers. Thanks to our international network, we are often able to sell or rent properties before they go on the open market. Our database of prospective customers allows us to find suitable buyers or tenants quickly and easily.
Make the most of our vast portfolio by registering with our prospective customer database today – free of charge and with zero obligations. We can help you secure your dream home, whether you’re buying or renting!