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Buying vs. renting
ImmobilienErwachsene
The biggest financial decision of your life: when does buying pay off, when is renting cheaper? It depends on purchase price, interest, rent and how long you'll live there.
Buying or renting – the answer depends on several factors:
Buying is more likely to pay off if:
✅ You want to live there for at least 10–15 years
✅ You have enough equity (20%+)
✅ Interest rates are low
✅ The price-to-rent ratio is below 25
Renting is often better if:
✅ You want/need to stay flexible
✅ Purchase prices are extremely high (ratio over 30)
✅ You invest the difference you save in ETFs
✅ You have no equity
Price-to-rent ratio: purchase price ÷ annual rent. Under 20 = buying pays off. Over 30 = renting is often cheaper.
Did you know? In most large German cities, renting is financially cheaper than buying – once you factor in buying costs, maintenance and opportunity costs.
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