Buying vs. Renting in Germany: A Financial Guide for Expats

Рет қаралды 6,444

4 ай бұрын

Should YOU buy or rent a home in Germany? What is the better financial decision? 🤔
Discover the ultimate guide to buying vs. renting in Germany as we break down the financial & lifestyle factors to help you make the best decision for your future.
Is renting really a waste of money? 🤔 We'll explore this common misconception and unveil the truth behind this important financial choice. Plus, we'll delve into the pros and cons of buying a home, including the hidden costs and long-term implications.
Join us as we navigate the complexities of homeownership versus renting, and learn valuable insights to guide your financial journey. Whether you're an expat or a local resident, this video is a must-watch for anyone considering their housing options in Germany!
Join this channel to get access to perks:
/ @perfinex
-
Set Yourself Up For Financial Success!
Free meeting with us: perfinex.de/meeting/
Text us on WhatsApp: +491755030773
-
Follow Us On Social Media & Join The Community!
Facebook: / perfinexgermany
Instagram: / perfinexgermany
LinkedIn: / perfinexgermany
TikTok: / perfinex
Podcast: podcasters.spotify.com/pod/sh...
-
PerFinEx GmbH - Personal Finance for Expats
The #1 English-Speaking & Independent Financial Planner in Germany
Further legal information is available at perfinex.de/impressum
-
* This is an affiliate link from which we will earn an affiliate commission or referral bonus (depending on the company). By clicking the link, you support our project at no additional costs for you. We thank you very much for your support. As of the date of posting this video, the content is accurate. Some offers may be no longer available.

Пікірлер: 32

@PerFinEx 4 ай бұрын

Free meeting with us: perfinex.de/meeting/

@muratcan__22 3 күн бұрын

thank you very much for this nice articulated video

@an_atheist7996 4 ай бұрын

In my case, I bought a small appartment that I will pay finish paying for in 5 years. I am also able to invest a little each month. A lot of money per month to serve this purchase. However, before buying the appartment, I was not able to invest as much as the monthly payment. In 5 years, I will rent this appartment and start with a new one. In 20 years, I will have a property to retire in, a 60% pension, a return from two other properties and return from my extra investments.

@KEcAzZ1 3 ай бұрын

At last someone is speaking sense! I always hear this argument that renting is waste of money, while buying is investing... And everyone seem to forget about the interest. I made some preliminary calculation based on my situation - for lifetime rent I would "waste" 300k, but guess what - thats exactly what bank would take as interest for their loan. WIth renting - you are free to move if you do not like something. With buying - you better like the place. It also depends on your work. For me, as a researcher with no permanent contracts, buying is hardly possible... Thanks for a great video!

@PerFinEx 3 ай бұрын

💯

@jilebi4870 4 ай бұрын

In My Opinion: All the investors talk about home as an investment, however nobody talks about small kids staying in apartments away from ground between concrete floors, not having childhood friends etc. You must remember your kids cant eat or enjoy money, they have other preferences in their childhood, and its forms the base for their life.

@lucasvazquez5337 Ай бұрын

I think the flexibility point is something people really ignore. The flexibility to not be bound by your region, and be able to search for better professional opportunities elsewhere, therefore increasing your income, is a major pro point for renting.

@PerFinEx Ай бұрын

💯

@argiriskoumtzis6202 3 ай бұрын

Great discussion as always!

@MarkusWitthaut 4 ай бұрын

Very nice summary of the arguments on both sides for Germany. I would like to stress that to consider that the market for buying property is much smaller than in all of the other EU states and the UK. In big cities only about a quarter of the flats and houses are not rented. So, when you buy a property you have a much smaller market for property without a tenant. Together with the high closing costs this means that if people have bought a property in Germany, the tend to keep it (as it is very difficult to buy a property). In 2022 in the USA about of 5 million homes were sold. In Germany this number was 0.22 million. The German market for homes is thus only a sixth of that of the US (when you factor in the population difference). So buying a home is much more a decision for life in Germany than in many other countries of the world.

@sirjosephwhitworth9415 7 күн бұрын

I can at present only comment on property purchase in the UK, however, renting is dead money, paying in effect someone else's mortgage. Renting is like being a cuckoo in someone's nest. Your comments are valid, but do I want to pay rent when retired? My current property, mortgage free, has increased by £200k in nine years, when I buy in Germany later this year, I will have a lot of spare cash remaining from the new purchase. You can never match property price inflation in the UK with a savings account, you are forever trying and failing to catch up.

@Sam-jj8sg 4 ай бұрын

Great Comparison !

@BFG-rr9cv 2 ай бұрын

If my house doubles in value in a few years, like it did in Berlin, then it's likely a pretty good deal. Also, you don't have to sell your house to lock in your profits. Your home is your security for your next loan. A few years ago this almost didn't cost you anything.

@ireallyamayuube 3 ай бұрын

As you said at the beginning it's a really personal choice, and generalizations don't make any sense. I'm a guy in his 30s who doesn't want any children and still doesn't know where to live. Buying looks like it doesn't make any sense to me, even though I want to cry every time I do that monthly bank transfer.

@samk_8426 4 ай бұрын

I choose to rent: 1. To keep up with inflation, it is necessary to switch jobs every few years and renting makes it much more feasible. 2. Buying means your investment and income is effectively in the same basket, making you very vulnerable to changes in local economy.

@551mili 2 ай бұрын

Best to invest but with home you can use laverage of you buying power but it depends from many other factors as you mentioned in video by the way you have done excellent explanation so we have opened eyes what is better for our situation 👍

@jjk9o9 3 ай бұрын

Thank you

@Fegga1955 29 күн бұрын

Thanks

@nachiketmore3375 3 ай бұрын

great video ,provide clarity i was seeking. buy house if not good at saving and investing, RENT and invest if good with money and finances.

@PerFinEx 3 ай бұрын

Perfect summary!

@m.b5777 Ай бұрын

So in Germany you can buy a home worh zero down payment? I didn't know that was possible

@susmitsekhar3763 4 ай бұрын

12:42 Nice analysis! A different question specially because I heard you say that you do the same. If one wants to stay rented but buy smaller studios as rental investment, how does larger down payment (amounts one can afford) compare against taking a larger mortgage with minimal down (people on this side claim the interest is all tax deductible and hence the benefit). Would love to hear your opinion

@PerFinEx 3 ай бұрын

We discussed the downpayment-dilemma in this video: kzfaq.info/get/bejne/l9h8m82UuN7DoXU.html

@ashishdeshmukh6738 4 ай бұрын

this video

@lazyhunk2 4 ай бұрын

If rent is stabilized, saving increases over the years. Investing in different assets will help in increasing the wealth.

@PerFinEx 3 ай бұрын

💯

@ciprianstan584 14 сағат бұрын

If......it is a big IF 😊

@EslamTheWizerd 4 ай бұрын

many good info, couple of extra points in favour of buying a home 1- you lock your morgadge payment for long time, while rent typically increase 2- becouse you can make very large levrage % with morgadge, assuming the price of the home increase, your gains get multiplied by the levrage. 3- inflation works in your favour, since the assets value typically recover fairly quick, while the debt stay the same. (your debt simple became wothless) one the negative side - buying a home with huge morgadge debt increase your risk in life, what happen if you lost your job ? if can't work anymore ? - living with this enurmuse debt can put you under a lot of streath

@tonimontana3485 4 ай бұрын

What i like at buying is that after 15-20 years you end up with a property but if you rent after 15-20 years you left with nothing.

@aymen8570 4 ай бұрын

Nothing only if you don't invest

@KEcAzZ1 3 ай бұрын

Nonsense. If you buy, you pay interest, which you can pay for rent. At the end of life, if you save, you will have the same ammount of money either in cash in bank, or in a form of a house/flat.

@PerFinEx 3 ай бұрын

As mentioned in the video, renters need to invest what they are saving.