Home Ownership in Germany – Escape From Rent is Worth, Say Experts

Home Ownership in Germany - Escape From Rent is Worth, Says ExpertsAccording to a study by BHW Bausparkasse, up to 17 percent of the tenants in Germany aim to increase home ownership this year. The investment is worthwhile: While building loans are still low, is expected that rent will increase further, especially in good locations.

According to the Real Estate Association, the average rent per square meter for new homes in middle-residential Germany equals to 6.77 euros (or about 541 euro per 80 square meters). In popular inner city locations though the prices are significantly higher. No wonder that many tenants now want to save their own pockets.

Bernd Neuborn from BHW Bausparkasse said: “The time to buy property is still good: depending on the desired object buyer can expect to pay for the financing of long-term less than for the previous rent..” A loan with a term of more than 15 years and 100,000 euros at a rate of about three per cent and two per cent repayment is to be had today for a monthly rate of about 420 euros. “Buyers should have 20 percent equity, which is the best condition for a solid construction financing,” said BHW expert.

Tags: bank, investment, Leasehold estate, loans, Real estate, Renting
Category: Germany