Rent or buy – an individual decision

Almost everyone has to deal with the decision in the course of their life whether they want to buy property or pay rent for the rest of their life. There are advantages and disadvantages on both sides that have to be weighed with regard to the individual life situation, future wishes and ideas. Important influencing factors also play the current interest rate level, income and assets, any credits or loans and, to a good extent, the level of real estate prices or rental expenses also represent essential criteria.

Arguments in favor of tenancies

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Leases are associated with far less responsibility. They offer much greater flexibility because, for example, a move can be implemented quickly after observing the notice period. The rent model is therefore suitable for those people who attach great importance to being independent of location. In addition, they are not bound by credits or loans that are usually taken out in connection with the acquisition of property, for example. In addition to this financial independence, there is also a certain degree of freedom in spending free time, as you do not have to take care of the garden, for example, and do not have to organize any maintenance measures or even do it yourself. It is not uncommon for tenants to have time-consuming hobbies, which they can pursue without any problems due to the lower time burden with a rented apartment or house. The freedoms that home ownership brings with it often classify it as low, as it ties up both financial and time resources. With regard to retirement provision, other options must be used. For example, stocks, bonds and funds are suitable here.

Argument for buying a home

High rents often create the feeling that these expenses could just as well be used for loan installments that would arise in the event of a home purchase. This would have a decisive advantage: you would be paying for something that you ultimately own, which is not the case in the case of rent payments. In addition, rental prices are increasing steadily. In addition, the purchase of a residential property is not infrequently a long-term, profitable investment that poses little risk compared to stocks and Co., but at the same time can achieve a strong increase in value. Particularly in times of economic downturn, great caution should be exercised with stocks and bonds, as their value is closely related to confidence. However, as soon as this is shaken, it can in turn have enormous effects, as history showed us in 1932, starting with the USA. The consequences were fatal for Germany and Austria. The decisive factor for the acquisition of a residential property is of course the financial situation. Such a purchase can rarely be managed entirely from equity, so it is important to obtain offers from several credit institutions in order to choose the loan agreement with the best conditions. It must be possible to secure the interest and principal payments in the long term and should therefore not represent an enormous burden on the budget. People who wish to own their own home strive for the freedom that comes with it, which is given, for example, with regard to the distribution of space and interior and exterior design. When purchasing a residential property, the willingness to invest time, effort and energy in maintaining it must not be neglected. Homeownership is also particularly suitable for those who feel that they have arrived geographically and who do not want to change their life in the foreseeable future.

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Whether renting or buying is the right choice depends on various factors. In this regard, the Interhyp AG guide offers important support with step-by-step instructions. On the one hand, this lists the advantages and disadvantages of the respective option and also describes the different wishes and ideas that are pursued with the respective option. He also gives tips on how to determine whether income and assets are already sufficient to buy a property. In addition, a budget calculator is provided, which allows an initial assessment.

As soon as the decision to purchase a residential property has been made, the right and affordable property must be found that meets individual requirements or can be in the future. Interest and repayments in connection with a loan depend on the amount of equity, the term and the collateral. The process in which various offers are obtained and compared is often tedious and challenging. In any case, professional advice should be sought in order to keep future, long-term liabilities as low as possible. In the course of an individual consultation, potential savings through a changed financing structure can also be revealed, which in turn have a positive effect on the realization of the dream of your own residential property.

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