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Buying a house is better than renting a house-based on the cost, the renter has to pay twice as much as the buyer

Over the years, prices of houses and apartments in most parts of Germany have been rising steadily. Therefore, some experts suggest not to buy or even warn of a bubble in the real estate market. Despite the epidemic of the new coronavirus, the current research results are reversed.

Because rents have also risen sharply-and there is no indication that this trend will end in the foreseeable future. In addition, the European Central Bank's low interest rate policy ensures that interest rates on loans and loans for real estate purchases continue to decrease. In other words, the ongoing financing cost of the homeowner is usually lower than the amount the tenant transferred to the landlord to purchase comparable real estate.

Real estate experts at the German Business School (IW) in Cologne explained: "Purchase prices continue to rise, but the increase is lower than the discounts brought about by low interest rates. Experts emphasize: "Tenants cannot enjoy this interest rate advantage."

In big cities, it is also worth spending money to buy a house instead of renting a house
The assessment also applies to large cities where prices are significantly higher than in rural areas. Accordingly, in all seven major cities in Germany last year, self-occupied owners were expected to gain a huge cost advantage over tenants. In the four cities, the average savings are more than half.

People who buy real estate can save at least 35% in major cities
The cities of Cologne and Düsseldorf on the Rhine are at the forefront. The cost savings of the following seven major cities indicate:
Cologne: 59.5%
Dusseldorf 58.7%
Frankfurt am Main: 55.6%
Stuttgart: 51.0%
Munich: 45.9%
Hamburg: 43.1%
Berlin: 35.1%

The average owner saves 50%
Experts explained that there is no need to consider the reason for repayment, because it brings an increase in wealth among tenants. However, the biggest benefit is to reduce housing costs: according to calculations, if you buy rather than rent, you can save an average of 48.5% in Germany. In other words, the rent paid by the landlord is nearly 50% cheaper than the tenant.

Experts said: "Since last year, the gap between the cost of owning housing and the cost of tenants has widened again." The beginning of the study said: "Owning a home is still the best form of pension," as I said, the study analyzed The situation in 2019.

The epidemic and consequences of New Coronavirus: What changed the crisis?
But are all these still correct now? After all, the New Crown Virus epidemic crisis is currently disrupting the economy, labor market and real estate prices.
But house prices and rents are “unlikely” to collapse
Therefore, the New Coronavirus epidemic crisis has only “limited potential for setbacks. Experts emphasized that price collapse will sometimes not exceed 20% as people think.” On the contrary, overall stagnation or an increase of around 10% may occur this year. "

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