Reasons for Building

Reasons for Building

More and more people are ready for the move to a dream home. Often, these people plague pangs of conscience and they hesitate. Again and again, the internet and newspapers read various arguments and theories against house building. We show you the most common prejudices and who owns your own home.

Housing construction has noticeably collapsed in Germany since the 1990s. The multi-family houses have hit it far more than the homes. From 2007, when the financial crisis swept through Europe, there was a new record minuses. Especially in economically stable and fast-growing cities, the supply was always scarce. Currently, the situation is similar: There is still a large demand in large cities, which can not satisfy the supply. The consequence: Rising prices for real estate and rents . Anyone who has bought a property a few years ago can benefit from this situation. Those who are still tenants at the moment have to pay the high prices.

State subsidies for the construction and purchase of a property are not as attractive today as they were several years ago. But that should not be the main reason why a family stays a tenant or becomes a buyer. There are far more significant reasons: Future housing costs and the feeling of living . However, there are always arguments against the idea of ​​buying or even building a home.

Bank loan rate higher than rent

A typical and popular argument against buying or building a home. Although the argument is not wrong, has to be watched over the long term . Anyone who rents a house initially pays less than someone who repays a loan for a comparable property. Over time, these totals change - for both. Under the law, rents can be increased legally every three years by up to 20 percent. Credit rates, on the other hand, can increase depending on the contract, but they can also decrease, depending on how interest rates develop.

Save money as a tenant

There are many bills that show how asset development is developing for tenants and homeowners. All have different results - the result depends heavily on who made the bill. If it concerns tenants or landlord associations, then the purchase is not worthwhile. If, on the other hand, there were prefabricated house suppliers or building societies, then the house construction suddenly pays off. Therefore: Interested parties should not refer to such & quot; evidence & ldquo; leave because you can prove everything with them. At this point, the sarcastic quote from Winston Churchill is very fitting:

& quot; I only believe in the statistics that I falsified myself. "

It's not about the fact that the federations boldly falsify the numbers and truths , In terms of statistics, however, they can easily screw on the numbers. According to the tenants, property values ​​and rents remain low, while lending rates remain high. The patrons of home ownership see the situation the other way round. In reality, both sides are wrong, because they believe that both tenants and homebuyers behave the same . The tenant is the thrifty, spending little on living and saving a lot. Reality shows that this is not the case. The savings are often spent and not saved. Moreover, financial assets are more vulnerable to debt defaults than real estate assets.

Uncertain times

Since the recent financial crisis, times have been far too uncertain to buy or build a home. There are always uncertainties - today, tomorrow and more than 80 years ago, when the global economic crisis threatened all countries worldwide. Despite deflation, social misery and massive unemployment, the global economy has recovered and life has continued. As unpleasant as it may sound, an economic crisis has an advantage for homebuyers and home builders, as the 2008 crisis showed: interest rates slipped to a historical low . Anyone claiming credit during this period benefits for years from the low interest rates.

Conclusion

The objections to the purchase of a home or the advocacy of renting have to be subjectively and are primarily dependent on Time horizon. Anyone who is time-bound in his life and moves frequently, for example, is better off as a tenant. For those who have long time perspectives, life as an owner is usually better.

Artikelbild: © gpointstudio / Shutterstock


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