Börsenbär (@stock_market

10Mon·

Topic Buy or Rent!

It is always discussed hotly 🔥 and with emotion. There is probably no one right way. It is also a bit of a personal lifestyle decision.

Here are the latest insights from Gerd Kommer on this topic. Unfortunately, we cannot predict how it will develop in the future🔮.

Gerd Kommer has determined by comparing the average annual returns of residential real estate between 1970 and 2020 with those of stocks and bonds. Anyone who bought their own home in the 1980s or 1990s is on average worse off financially today than if they had continued to live in rented accommodation and invested on the side.

With the new millennials, the wind has changed, his calculations show. The average home buyer would have made a better deal than a renter both between 2000 and 2020 and between 2010 and 2020.

Source: Gerd Kommer: Buy or Rent. 2021, S77

Own opinion:

Nowadays, investing in the stock market is a lot easier and more accessible than it was in the 1980s and 1990s. Therefore, I think that for many people it was almost without alternative to invest their money in real estate at that time. Also, financial education was not as good as it is today.

Who has bought from the 2000s, has certainly made a good investment.

And in own thing still. It is simply good to know that no one can terminate the apartment/house because of own need. This security is worth a lot. Especially in big cities where there is a massive housing shortage.

Kind regards

Stock market bear 🐻

#immobilie
#immobilien
#kaufen
#mieten

15 Comments

Ich esse Waschbären zum Frühstück@DonkeyInvestor

10Mon

Ultimately, it is primarily a question of the desired lifestyle, I agree completely. However, a property does not fit my desired lifestyle and financially it makes no sense at all in my region. But it's a very individual decision and return on investment isn't everything. Some time ago I summarized how you can calculate for yourself and in your individual situation whether buying or renting makes more sense. Of course, the examples have not been adjusted (interest rates have risen in the meantime), but they illustrate the theoretical calculation. Calculated: Own a home or stay a tenant? Basics + Theory https://app.getquin.com/activity/FoLdCxttXY A detailed calculation example https://app.getquin.com/activity/evjQvBldso Influence of variables + more examples https://app.getquin.com/activity/GEBmMewkKS

•

JUNl@JUNl

10Mon

Of course, this is a highly personal issue that is also always very closely linked to one's own life (mainly due to professional and family reasons) and probably also to one's regional origins and, of course, to the current real estate and interest rate market. For myself, renting would never be an option again. In the middle of the 2000s (I was in my 20s) I was shocked to discover that I had already spent almost 90,000€ on rent in my then young life, a lot of money back then, just before that was still Mark and 180,000 Mark, that was already a lot of money. In addition, I had always saved (for every mark / euro I spend, put one aside), so I actually bought a house from it at the time and financed the rest for 10 years in the amount of my monthly rent at the time, so I did not even perceive the financing. I'm now in my early 40s and since my mid-thirties I've been living in a paid property, haven't really changed my consumption and saving behavior (except that I can save/invest even more and just work part-time) and have also bought more properties when the cash and opportunity is right (i.e. cash, not financed), they are rented long-term to nice people at a slim rate. But I also come from a region with the highest homeownership rate and reasonably passable real estate prices. Financially pulling the neck because of a property, however, would never have been an option for me.

•

View all 2 further answers

Stefan L.@Salamistar

10Mon

For me, home ownership is clearly a lifestyle choice. In Corona time I have seen with my brother how stressful it can be to be a tenant. 4 people, 2 of them small children. 85m2 on the 2nd floor with mini balcony, then Kitas closed, home office, etc. Pure stress. But they are of course flexible when it comes to jobs, move to the emergency ready. I live with my parents on about 230m2, with 6650m2 plot. For me pure luxury. I spend my vacations in my garden and enjoy myself. My brother prefers to go away 3 times a year for 2 weeks...

•

Alfred E.@Papiertiger

10Mon

Own home is often pure luxury that you want to afford and many "invest" then also too much then in kitchens, furniture, etc. and in maintenance, because it's mine and then the return is there again. I'm also rather just become a landlord without really having planned it and then at least a passive income comes out with and if necessary when selling the return, which is probably different for each object. Being a landlord and being a tenant makes more sense in many cases. Just my naive opinion 😂

•

Ludwig@LUD

10Mon

Correct representation of "there is no right or wrong". In the here and now, however, there are clear key figures that say "buy dat ding" or "hands off". Of course, paired with very many "softer" criteria. For me, the rule is: buy so many apartments that the positive cash flow at least pays my current warm rent. :)

•

Tim@investorsapiens

10Mon

Rent = lifetime loan without repayment. Anyone who wants to finance third-party real estate for life is welcome to do so.

•

Nico@Lucki_Lucki

10Mon

It also always depends on how you can finance everything. In my area, a loan is almost as expensive as the rent, so I build up assets and do not pay the rent to strangers.

•

K K.@kkkkkk

10Mon

I think it is an investment if comparable housing in rent is not too far from the loan amount. If your housing costs 1000€ in rent and 2300€ on credit, then that is already a luxury property / consumer goods. But if the loan amount is only so 20-30% above the rental amount, then that is then okay.

•

Seventrader@7Trader

10Mon

I share your opinion on many points, but your last paragraph is not correct (at least according to Austrian law): The MRG includes the termination according to personal need (even if difficult) and according to ABGB (even without personal need) anyway, provided that the existing right is not secured by land register.

••

View all 2 further answers

Tim S.@TimundStruppi

10Mon

Rather rent cheaply than buy expensively or rather buy cheaply than rent expensively?🤣

••

Join the conversation