For many people, real estate is considered a solid investment, especially when it comes to securing wealth in old age. Added to this are the constantly rising rental prices in recent years. Should you rather rent or buy an apartment? Many people ask themselves this question.

Why not just become the owner yourself and pay off a loan at the bank instead of paying the monthly rent? The currently low mortgage interest rates also play a major role in the idea.

It is not clear whether renting or buying an apartment is a better solution. It depends on many factors and also on the life plans of the person, which variant you should choose.

Renting an apartment offers a number of advantages

If you want to remain flexible in your place of residence, both professionally and privately, the rental apartment offers exactly this advantage. You are not tied to one city and relocations are faster and less binding. This is particularly advantageous when there are changes in living conditions. Whether you are single, a couple or a couple with children, the demands on an apartment are constantly changing. This cycle influences housing needs, e.g. B. the size of an apartment or the desired location.

Another advantage of renting an apartment is the protection in the event of renovation work or other damage. By paying the rent, the tenant is responsible for the use and wear and tear of the apartment and does not have to take care of the maintenance himself. During the rental period, there are usually no unexpected costs for the tenant. Only when moving out does the tenant have to look for the current Verdict of the Federal Court of Justice for possible renovation costs. Here the landlord and tenant share the costs.

The disadvantages of renting an apartment

The rising mietspiegel has caused many tenants great concern in recent years, as this often means an increase in the rental costs for the apartment. Those who pay more and more rent have less money to live on. An additional investment is usually not possible. You do not get back the rent you have paid (unlike when buying or selling an apartment).

Another point is the possible termination due to personal use on the part of the landlord. It can happen that the current owner wants to live in the apartment himself. In such cases, the lease may be terminated for personal use and the current tenant will have to look for a new apartment.

Of course, the apartment can also be sold. In this case, however, termination is not so easy to implement. In the event of a change of ownership, the new owner is (for the time being) obliged to take over the rental agreement.

The advantages of the condominium

When most people first think of a condo, independence comes to mind. The owner is not subject to any rental agreement. He can design the apartment as he likes and is only dependent on himself for most of the other decisions. Laying a new floor or larger work, such as installing a bathtub, is not a problem for an owner. It is important to mention that any renovation work that is invested in can contribute to increasing the value of the home. In the event of a later sale, this usually has a positive effect on the market value of the property.

Many people hope that buying an apartment will give them the opportunity to invest money and provide for their old age at the same time. This is mostly the case. If the owner finances his condominium with a bank loan, he also pays a monthly installment, but this is an end in itself. In other words, he pays the rent back to himself. After a few years, the apartment then belongs completely to the owner and he can minimize his living expenses. Likewise, rent increases and terminations are no longer a relevant problem. As an owner, you are protected from this.

Buying an apartment: you have to think about that

Buying an apartment must be well thought out. In contrast to a rented apartment, the owner cannot flexibly terminate the chosen apartment and move. If he still decides to give up the apartment, there are two options: to Owner become or sell.

When buying a property, there are significant transaction costs of around 12 to 14%. These are made up of the costs for the broker (up to 7,14%), the real estate transfer tax (up to 6,5%, depending on the federal state) and the notary and court costs (approx. 2%).

The potential homebuyer must be aware that he will have to raise additional money for these transaction costs. In addition, especially as a beginner in the real estate business, you are dependent on experts, such as real estate agents or property managers.

When deciding whether to rent or buy an apartment, opening an additional account will help with further expenses. That way you are protected in case of an emergency.

Such protection also helps with unexpected expenses. As the owner, you are also responsible for the maintenance of the property. Renovations and possible refurbishments must be paid for by yourself. If you buy an apartment in a house with several owners (= WEG), you are also responsible for the maintenance of the entire property (stairwell, facade, garden). But these maintenance costs are calculated by the house money in such a way that special charges can be avoided for the most part. Housekeeping includes all ongoing operating costs, such as house electricity, waste disposal, administrative costs or the maintenance reserve. So it is a kind of utility bill for the owner.

Conclusion: rent or buy an apartment?

Whether you rent or own an apartment depends entirely on your personal life plans and interests. Renting an apartment offers flexibility and a degree of financial security, as there are usually no unexpected costs. In addition, renting an apartment is often less stressful because you do not have to worry about possible renovation work etc. yourself. All costs are covered by the rent.

The condominium is a financial security and capital investment. This can be particularly useful as a retirement plan. In addition, you are safe from rent increases and terminations. investments such as B. the laying of a new floor, not only increase the quality of living, they also pay off in the resulting increase in value of the property.