Advantages and disadvantages of renting and buying quickly explained!
Which is better – renting or buying an apartment? This is one of the most frequently asked questions about living. If you do your research, you will quickly find that everyone is saying something different. There are some clear factors and arguments for both variants, i.e. for renting an apartment as well as for buying an apartment.
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The most important advantages and disadvantages of “renting and buying” are clearly listed here:
What are the advantages of renting a property?
Flexibility – because professional or private circumstances often change
For many people it is important not to be tied to one place. Whether a new job, a new partner or even an addition to the family. The living space must adapt to the life plan and the respective living situation.
The advantage of renting is therefore: As a tenant, the apartment can easily be canceled within a period of time.
Living environment – from unpleasant neighbors to unplanned construction sites on the doorstep
Cities and districts in particular develop quickly and change with the residents who move in or out. The residents in the immediate vicinity of the house can also harbor pleasant or unpleasant surprises. Often you don’t see at first glance or the first greeting whether you will get along well with your future neighbors. Only after moving into an apartment or house does the rude awakening come.
As a tenant you have the option – in the worst case – to pull the rip cord and rent a new apartment or house. “Renting” is flexible.
Maintenance costs – no burden for the tenant!
If you live to rent, you have only limited responsibility for the house or apartment in which you live. This can be a huge benefit when it comes to the cost of maintaining the property and upgrading it. These cannot simply be imposed on the tenant.
The landlord usually has to pay the costs of maintaining the property.
No equity required
The rent is to be paid monthly. Only a possible deposit or brokerage fee has to be paid at the beginning of the tenancy. There is therefore no need to raise a large amount of equity in one go. In contrast to buying an apartment or a house.
The good thing about it: Since renting an apartment does not require a large amount of equity to be raised in one fell swoop and possibly borrowed, as is usually necessary when buying an apartment, you do not have to worry about paying off your debts.
The advantage of buying an apartment is that you are your own “master” and don’t have to deal with landlords. But you don’t have to do that as a tenant either. There is also tenant protection , which protects tenants from many possible unreasonable demands that may arise from the landlord.
What are the disadvantages of renting?
Rent – The monthly charges for tenants are steadily increasing. The demand determines the price!
Renting an apartment basically has the advantage that it is a calculable monthly expense. Unfortunately, this point also has a downside: rents have been rising continuously for years. Most recently, on April 1, 2019, the benchmark rents in Austria were increased by over 4 percent. As a tenant, you are at the mercy of these price increases and the associated rent increases – there seems to be no end to the rising rents in sight.
A look at other cities in Europe shows where the trend is headed. The fact that rents in Austria are still moderate in contrast to other countries is of little consolation.
In general, future rental costs are difficult to calculate. There are several future scenarios here, both with regard to real estate prices and rental apartments and houses. Several factors play a role, such as B. the development with regard to the number of inhabitants, decline in the birth rate, etc. play a major role. The subject is hotly debated.
However, if you look at other countries and the rent burdens compared to income, you can assume that rents will continue to rise in the future.
Austrian families currently spend up to 42% of their household income on rent.
But how does a tenant know whether the rent amount is justified or not?
This is where the Rent Down service comes in. Excessive rents? No thanks! Find out HERE about our services that help you to enforce your claims against the landlord if you have paid too much rent.
Inflexibility – changes to the living space are not allowed?
The landlord has a say in the design of the rented apartment: If you live in a rented apartment, you only have limited opportunities to change the living space and adapt it to the respective living situation. Many things have to be agreed with the landlord – whether it is about renovations or other changes in your own home.