When is it worth buying, when is it worth renting?
When is it worth buying, when is it worth renting?
Rent or buy? The advantages and disadvantages of rented apartments – Rents are rising inexorably and more and more families are wondering whether buying is a good alternative. In most cases the answer to this question is yes. But there are also cases where the rent serves as a safe and cheaper alternative. Rental apartments offer the advantage that you do not have to worry about maintenance or servicing. In concrete terms, this means that you do not incur any additional costs for the living space apart from the monthly rental payment including operating costs. Waste charges and hot water are included in the warm rental price as well as the building insurance against fire and water damage. As the owner, you bear these costs, as well as the expenses for maintenance and repairs yourself. Whether the purchase is more advantageous than the rent depends on various factors. If, for example, you would like to stay in your place of residence permanently, you can consider buying it and use a simple example to calculate to what extent the purchase of a home is worthwhile. If you live for rent, you must reckon with rent increases and also accept that an owner registers a deductible or schedules a renovation in the inhabited state. To find out the advantage or disadvantage of renting, compare the rent you have paid over the last 20 years with the purchase price of an apartment in the region you have chosen. If the purchase price exceeds the rent of the period of 20 years, you receive more advantages by the rented apartment than by the purchase. If the ratio is balanced or the property is even cheaper than the budgeted expenses for rent, you should buy and own property.
The rental apartment: Old – or new?
New apartments inspire by their comfortable, modern and often luxurious equipment. The old building enchants with its charm and high ceilings, often stucco decorations at the transition to the ceiling and frescoes on the walls. In the past, the rental apartment in an old building was regarded as an inexpensive alternative to a new apartment. Today there are hardly any price differences, so that you can choose the apartment according to your personal taste. In metropolitan areas the search for an adequate rental apartment can become a real challenge. As a private searcher, you must expect group visits and assume that the search will take longer than desired. Here it is recommended to let an experienced real estate agent search for you and to find in a short time a rented apartment according to your imagination. With IHV, you are invited to individual visits and receive recommendations that match your search details and match your wishes in terms of both price and equipment. If you are interested in rental apartments in a new building and do not want to move in immediately, it is worth looking for an apartment that is just being built. Our experienced estate agents maintain good contacts with builders and property managers so that you can get to your new home much faster than is the case on the public market. Through our cooperation with owners, we also receive continuous offers that can be rented out and that come into question for you.
What you should look out for when looking for rental apartments
If you are looking for rental apartments, you often have to expect a longer-term search, rejections or higher rental prices than planned. In order to find a suitable apartment, you should follow a checklist and clearly define the monthly costs hot and cold, the radius of the search as well as the requirements to the equipment. Set yourself a limit that you will not exceed even after several visits. With the right search algorithm and a little patience you will find an apartment for rent for which you will not pay more than possible and where you can be sure that you will not spend half your salary as rent. Take a close look around the apartment and try to get an individual visit. The heating, the windows and the walls, but also the floor and the sanitary facilities should be inspected in the longer term. The best time for a visit is in the afternoon. Then all the neighbours will be at home and you will find out how busy the road in front of the object is and how it generally behaves with noise from outside. If an apartment has aroused your interest, you should show it and show the owner that you are the right choice because of your professional appearance and the complete documentation. It is a good idea to bring with you a certificate of creditworthiness and the last three proofs of income, as well as the completed and signed self-declaration. Owners appreciate the reliability of potential tenants, so you can use complete documents to prevent rejections and increase your chances of finding the coveted rented apartment. So that you don’t notice things afterwards that you overlook during a visit, it is best to take a camera with you and look at the pictures from your apartment at home in peace. Do not make an emotional decision, but look at the search for a suitable rental apartment rationally and needs-optimized.
move into a rented apartment or buy property?
At some point in their lives, everyone is faced with the question of whether they should continue to rent or rather buy. The financial aspects of a decision are already explained in the first paragraph of the Article. In addition to calculating whether the rent or the property are more profitable, come the personal needs of the individual. Young people in particular are often overwhelmed by the purchase of a condominium. There may be professional or personal changes and a related move. If you have bought an apartment, you are bound to your place of residence or have to aim for a sale if you are planning to move. With a rented apartment, personal wishes or professional relocations can be realised more easily. You are practically independent of location and can adapt your place of residence to your perspective on life. Apartments for rent are therefore a practical decision, especially as you are faced with a wide range of options. From a small apartment to a large family apartment with an adjoining garden, you can rent and move within your financial leeway according to your possibilities. If you are looking for a rental apartment without hectic rush and pressure to move, you are guaranteed not to pay too much and do not have to make any compromises when choosing the apartment. If you are renting a renovated apartment or flat for the first time, you should explicitly deal with the requirements for moving out in the tenancy agreement. The legislator has defined clear guidelines here, to which you can also refer to other information in the rental agreement. If the contract has the severability clause which is present in all modern rental contracts, all other contractual points remain binding even if a single point, for example in the case of cosmetic repairs, is not valid according to the law. Even as a tenant you can get advice on the contract and obtain information that will clarify the validity of the individual points and your rights, as well as your obligations. In order to feel comfortable in your four walls and make the right decision, it does not necessarily have to be the purchase of property. After all, around 80 percent of all Germans live for rent, which makes a clear preference clear and makes the rental apartment the focus of attention as an attractive option.
offer rental apartments: Challenges for owners and landlords
The subject of rental apartments is associated with some expenses not only for potential tenants, but also for owners. If you want to rent out, orient yourself to the local comparative rent and calculate all factors of the equipment. It has proved helpful to rent through a local real estate agency and to pre-select potential tenants. The demand for rental apartments at fair prices in particular is very high and can lead to a situation in which the owner gets under stress and hardly anything else can happen, far away from answering e-mails and telephone calls. Also prospective tenants negotiate and submit offers to you to lower the cold rent price or to waive a deposit completely or proportionately. If you outsource the rental of your apartments, you will save a lot of time and nerves. We use our expertise and know-how to carry out inspections at IHV, conduct discussions with interested parties and check the documents submitted to us. You make the final choice, after which we have saved you a lot of work and made a preselection. We will be happy to help you estimate a suitable rental price and offer the apartment neither too expensive nor too cheap. The private letting is indeed a possibility, but requires from you as the owner a holistic commitment. Letting through a brokerage agency is suitable for individual apartments, but also for newly emerging construction projects with many apartments. While you devote yourself to your core business, an IHV broker will take over all rental tasks and relieve you of the burden by providing you with full service and competence.
How local real estate agents can support tenants and landlords | IHV
When selling a house, it is usual to hire a real estate agent. But also owners who want to rent out apartments can opt for a professional service from the local real estate agent. Your house sale supports landlords in their search for tenants and is a contact for prospective tenants who are looking for rental apartments. Thanks to a large network of partners, market knowledge and professionalism, you as the owner will find solvent tenants in a timely manner. As a potential tenant, we can simplify your journey to the new apartment and search for you. Are you still considering whether renting or buying is the best decision for you? We are happy to advise you at IHV and work with you to find the solution that suits your life and your personal needs.