Real estate: more expensive in the short term - but cheaper in the long term?

The housing market will remain tight in 2023 and new construction will also come to a standstill in many places due to persistently high interest rates and material costs. According to the magazine Mirror it is not worth buying a house even if rents were to rise by another 20 percent. But is that really true?

Despite falling purchase prices and rising rents, the Real estate acquisition according to a study for an average household. According to Der Spiegel, even if rents were to increase by 20 percent, buying a house would still be 381 euros more expensive than renting, making it unprofitable for the average earner.

Is buying a house really unaffordable?

The credit insurer's investigation Alliance Trade, to which the article refers, came to the conclusion that it is rather unlikely that private 'house builders' will pull the construction industry out of its demand slump. This is because they would not be able to afford to buy a house despite the fall in prices. Buying a property is also not a realistic option at the moment due to high interest rates on loans. An easing of the interest rate situation is hardly to be expected, not even through simplified building permits.

Why buying a house is worthwhile despite changing market dynamics

Construction costs are high, interest rates are rising and inflation is squeezing purchasing power. In times like these, it may be tempting to put the dream of home ownership on the back burner. But there are good reasons for buying a home right now. Property prices have fallen significantly in recent months. This is because high interest rates and construction costs are dampening demand for real estate. For buyers, however, this means that they can now buy at more favorable conditions than just a few months ago. Although experts do not expect the construction crisis to end just yet, it may be worth buying a house right now.

Owning instead of renting: Why now is the right time to buy

In addition, housing is still in short supply in Germany. In many regions, there is a shortage of apartments, especially in conurbations. This leads to high rents and a growing tenant shortage. Buying your own home makes you independent of this problem. Real estate is considered a safe investment. It generally retains its value and can increase in value over time. This makes it a good retirement provision. Owners can also rent out their property and generate additional income.

Requirements for buying a house

If you have sufficient equity, a stable income and a good credit rating, you should not deny yourself the dream of owning your own home. To ensure that such a decision is a long-term success, you should prepare yourself well. Advice from a local real estate agent is therefore recommended to ensure that your home purchase is a long-term success. An estate agent you can trust is familiar with current market developments and can therefore provide you with expert advice. They can also help you with questions about financing, choosing a property and all other important issues relating to buying a house.

Are you looking for a suitable property? Please contact us! We will be happy to advise you.

Notes

For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where this is necessary for the statement.

Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.

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