What are the disadvantages of home ownership

Rent or Buy? The advantages and disadvantages at a glance

The purchase of residential property is trendy - but there are also good reasons to stay a tenant. The most important pro and con arguments.

The current mix of rising rents and extremely low interest rates is making more and more people think about whether they would be better off buying an apartment or a house. In a survey by Prognos and the Institute for Demoskopie Allensbach for the Sparda banks at the end of 2013, one in five tenants stated that they wanted to buy residential property. In fact, it was almost every third of the under 40s. This trend is not entirely new, however: from 2002 to 2010, the home ownership rate in Germany rose by 7 percentage points to just under 46 percent.

Whether living for rent or buying property is the right decision depends heavily on individual requirements. There are good arguments for both.

Advantages of renting are: While buyers are more or less bound by the loans they (have to) take out to finance their property, tenants remain flexible and can move when they feel like it. Unlike tenants, owners are responsible for the care and maintenance of their home, while tenants are spared unexpected and costly repairs, for example on leaky roofs or defective heating. In addition, the state collects property tax annually from homeowners. Although this is passed on to the tenants, it is relatively cheaper if there are several tenants.

Advantages of buying: Young families dream of a house in the country mainly because they want more space and a garden for the children. In addition, your own four walls can be designed according to your mood, while otherwise a landlord is in charge. Last but not least, property also offers protection against unexpected redundancies: the number of these has increased noticeably in major German cities over the past three years, according to the tenants' associations.