Owning vs. renting a flat

Ownership sounds like freedom – but it comes with costs and obligations that many buyers underestimate.

Hidden costs of an owner-occupied flat (Germany):

1. Hausgeld (service charge, monthly):

• €2.50–4.50/m² per month
• For 80 m²: €200–360/month ON TOP of the loan instalment
• Includes: operating costs + management + maintenance reserve

2. Special levy:

• If the reserve isn't enough (roof, lift, façade)
• Can amount to €5,000–30,000 per owner – and you have to pay!
• Decided by resolution of the homeowners' association (owners' meeting)

3. Maintenance:

• Rule of thumb: 1–1.5% of the property value per year
• For a €300,000 flat: €3,000–4,500/year

4. Homeowners' association (WEG):

• You are NOT alone – the homeowners' association decides jointly
• Façade colour, stairwell renovation, lift: majority decision – even against your will
• Disputes within the association are one of the most common reasons for court cases

Advantages of renting:

✅ No special levies, no service charge, no maintenance
✅ Flexibility (3 months' notice)
✅ No capital risk (property prices can fall)

Advantages of owning:

✅ Rent-free in old age, wealth building, possible appreciation