Buy or rent – what’s worth? (Image: grant, unsplash)
If you are thinking about whether you should rent or buy, our computer will help you to make a well -founded decision. He compares both options in a very concrete way – based on your personal information such as purchase price, equity, interest rate or rent increase.
So you can see at a glance, which is more worthwhile in the long run: buy or continue to rent rent.
This is how the rent or buyer works
With our Rent-or buying calculator You can easily find out what is more worthwhile for your situation in the long term: buy or continue to rent rent.
The computer works with realistic assumptions and takes into account all important factors – from purchase price to interest to the increase in the value of the property.
- First enter the basic data for the property above: the purchase price, your available equity and the monthly rent that you would currently pay if you rent instead of buying. In addition, they indicate the living space so that the value per square meter can later be compared.
- Then follows the “Financing” area – here you enter the interest rate (target interest) that you have for yours Mortgage would get, as well as the initial repayment rate. Both affect their monthly credit rate and the establishment of their assets. To do this, select the state – important because the real estate transfer tax is different in region – and determine how long your interest rate should remain stipulated (interest binding duration).
- In the lower part, you make a few more assumptions: How much rents in your region are expected to increase per year? How do real estate prices develop? How much reserve do you have to plan for maintenance annually? And finally: about what period you want to compare – e.g. B. whether rent or purchase is cheaper in the view of 20 years.
- As soon as everything is filled out, click on “Calculate now” – and the computer shows you clearly broken down whether you drive better with a purchase or whether it makes more sense to live for rent in your case. Among other things, equity interest, rental costs, interest payments, value growth of the property and ancillary costs are included.
So you have all the numbers transparently in front of you – and can decide on a well -founded basis which way for you in the long term.
Rent or buy: advantages and disadvantages
Whether you buy a property or would rather rent further is not a purely financial question.
Of course, it’s about numbers – interest, additional costs, rent – but also about flexibility, security and personal life plans. Here are the most important arguments for both sides.
The most important advantages and disadvantages at an overview
| Rent – advantages | Rent – disadvantages | Buy – advantages | Buy – disadvantages | |
|---|---|---|---|---|
| flexibility | Can be canceled quickly, ideal when changing jobs or separation | No long -term security | Permanent residence, planning security | Property binds to “get rid of” again more difficult |
| Monthly burden | Often cheaper than credit rate when buying | Rising rents, especially in metropolitan areas | Tilting instead of rent – asset structure | High initial load through credit rate + additional costs |
| Asset | No reserves necessary | No property, no capital formation | Real estate as a pension | Competition uncertain, maintenance necessary |
| Additional costs / taxes | The landlord pays maintenance | No state grants | Funding (e.g. KfW), long -term cheaper load | Real estate transfer tax, notary, broker, obligation to reserve |
| Freedom of design | No renovation obligation | Limited modernization options | Own decisions when converting, garden, expansion | You bear the renovation costs yourself |
| Inflation protection | Rent can adapt to inflation | In the long term more expensive through rent increases | Property as a real value protects against inflation | Interest fluctuates – with follow -up financing risky |
If you want to stay flexible or do not yet know exactly where you want to live in the long term, you often drive better with the rent – at least at short notice. Anyone who wants to build up assets, secure themselves and become independent of rental prices, for you, buying real estate is usually the better choice in the long term – especially with low interest rates and if there is enough equity.
Example: Is it worth buying the property?
The Müller family is considering whether they should buy or continue to rent their new home in Baden-Württemberg. The most important frame data:
- Purchase price of the property: 500,000 €
- Equity capital: 100,000 €
- Monthly rent for a comparable property: 1,500 €
- Burning interest rates (10 years firm): 3.5 %
- Initial repayment: 2.0 %
- Purchase costs (real estate transfer tax, notary, broker etc.): approx. 52,850 €
- Monthly credit rate: approx. € 2,300
- Rent increase per year: 2.0 %
- Value increase property per year: 1.5 %
- Maintenance costs property per year: 1 % of the object value
- Consideration period: 20 years
Comparison after 20 years: buy rents vs.
| Rent | Buy | |
|---|---|---|
| Total editions (rent + increase) | approx. 446,000 € | Credit rates + additional costs: approx. 552,850 € |
| Asset formation | no | Real estate worth around € 650,000 |
| Reserves/maintenance | no | approx. 100,000 € over 20 years |
| flexibility | high | small amount |
| Ownership at the end | no | Yes, debt -free |
Although the Müller family pays significantly more when buying in the first few years, the investment is worthwhile in the long term-mainly because of the increase in value and assets. After 20
Years are a property that is probably worth over € 650,000, while you would have simply “used up” this sum when renting.
So it’s worth buying – If there is equity and the family wants to stay in the long term. However, if you want to stay flexible, have fewer reserves or do not want to commit yourself, you are better served with rent at short notice.