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
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