With over 57 percent of the total population, a large part of all Germans live for rent. In the case of one-person households, it is even more than 70 percent. The concept of apartment rental is considered by many to be the unquestioned standard - alternatives prove that both financially more efficient and more sustainable living is definitely possible. Buying a condominium with real estate agent Engel & Völkers Germany instead of renting it turns out to be the fundamentally more worthwhile option in many cases. In this article, our real estate agent team compared the advantages and disadvantages of both living concepts so that you can determine whether buying or renting is the better choice in your individual situation - find out more!
The living concept of renting undoubtedly reveals some advantages that are difficult to deny, which are not least responsible for its great popularity. It is the simplest and fastest accessible form of living: no high entry fee is required, the monthly burden is justifiable across Germany with an average of a quarter of the monthly net income and statutory tenant protection is well developed across the board. In addition, tenants of an apartment take only a very small risk, as the landlord is ultimately responsible for the basic security and operation of the property. As a rule, the tenant does not have to pay for repairs to the structural and technical building structure.
In addition, tenants benefit from a high degree of flexibility, since rental contracts can be terminated at relatively short notice in order to adapt their own living situation to changing living conditions, from a new career step to family planning and longer stays abroad.
At the same time, tenants also accept that the payment of the monthly rental contributions have no asset-effective function - they only exercise the right to use and live in the landlord's apartment for an unlimited period. At the end of the tenancy, the equivalent value of these payments for the tenant is lost, which is why the real estate agents at Engel & Völkers Germany recommend that every tenant consider buying an apartment.
In contrast to a rented apartment, the purchase of a condominium has a lasting effect on your private assets, since you are financing your own apartment rather than someone else's. You can pay off the bank loan that is often necessary for this, so that, as with the rental model, no major one-off payment is necessary - many credit institutions now even offer purchase financing without equity. Depending on the terms of the loan, the monthly charge may even be lower than the respective rental amount, since the currently very low interest rates are usually set lower than the return expectations of landlords. And once the loan has been paid off, you live for a few years, minus any additional costs, repairs and tax levies for property owners.
Buying a condominium in Germany offers even more advantages than renting: As a property owner, you always have the freedom to make visual or technical changes within the apartment without having to get your landlord's consent.
If at some point you decide to move out of your condominium again, you can sell it and get back the amount you invested (or even more thanks to the increase in value). Or you can rent the apartment yourself and benefit from an additional source of income. For many buyers, the possibility of inheriting the property in question and thus leaving secure relationships for their own descendants or other relatives also plays a significant role.
Taking into account all these advantages, buying a condominium in Germany can prove to be a much more sensible decision compared to long-term rent. Ultimately, however, it depends on your personal life situation, your professional situation and your future plans which model you should prefer. Your real estate agent Engel & Völkers is your ideal contact for both purchase and rental matters: We have a high-quality range of exclusive apartments for sale and rent throughout Germany that meet the highest demands. We would also be happy to advise you personally on which living solution is currently the most suitable for you - just give us a call or write an email. The real estate agent team at Engel & Völkers Germany looks forward to an interesting discussion with you!
