Inexpensive apartments in Germany and how to choose them correc

  • Inexpensive apartments in Germany or 75 cities under review: where buying real estate is still worth it and where to rent it makes more sense.

    If your choice when choosing real estate fell on inexpensive apartments in Germany, then we want to warn you right away that it will not be easy to find such in a good and promising place. According to the analysis of one of the leading real estate portals in Germany, immowelt compared the monthly rental price with the purchase of real estate (loan 15 years, interest rate 1.6% repayment 2%):

    In 51 of the 75 major cities, the financial burden of rents is less than the monthly repayment rate.

    Big differences in hotspots: in Munich rent is 660 euros cheaper, in Hamburg - 440 euros.

    Retirement Savings and Design Freedoms: Buying a property can still be worth it despite the higher burden.

    Thanks to low purchase prices: in Bochum and Oberhausen, the burden on the purchase of real estate is even 170 euros less.

    In Germany, about 58 percent of all people live in rented apartments. Only 42 percent own a house or apartment. Buying a house or apartment on credit and paying it back over the next few years can be cheaper than renting it out. The evaluation of the real estate portal Immowelt shows where the purchase can be profitable, and where it is better to live in order to rent.

    Given the rise in property prices, many Germans are faced with the question: is it worth buying a property or renting is now more significant? The immowelt analysis shows how big the differences are in the monthly rental burden and the repayment rate when buying real estate in 75 major German cities. Thus, in 51 cities, the financial burden when renting a home is lower than when buying real estate. In 35 cities between them, even more than 100 euros. However, moving into your own home / apartment can make sense, especially in terms of retirement savings and lease freedom.

    For the analysis, monthly rates were calculated based on the offer prices (rent and purchase) for a family apartment of 80 to 120 square meters. In addition, the maturity rate accepted 100 percent financing with a maturity of 15 years with an interest rate of 1.6 percent and an original maturity rate of 2.0 percent.

    Rent can be in some regions up to 660 euros cheaper

    Especially in popular big cities, purchase prices are so far from the rent that for many families the purchase of real estate is no longer possible - despite low interest rates and a short loan term. Munich has the biggest difference in monthly workload. The repayment rate is 660 euros higher than the rent. The apartment costs a median of 1.740 euros for rent, annuity is 2.400 euros. Thus, with average purchase prices of 800,000 euros plus additional purchase costs, the acquisition of real estate may only make sense in some cases in financial terms. In addition, after 15 years of the loan term, a large residual debt awaits - in the case of Munich, about 530,000 euros. I am not sure that the conditions on loans by then will be as good as they are now.

    But not only in Munich, the increase in purchase prices led to big differences: in Hamburg, tenants live 440 euros cheaper, in Frankfurt - 420 euros. Even in small towns, shoppers must expect a high monthly rate: in Potsdam they pay 520 euros more, in Ingolstadt and Luebeck more than 300 euros on top.

    The advantages of buying an apartment in Germany partly justify the higher workload

    Although the burden of buying real estate is higher than the rent, the journey to your own and preferably inexpensive apartment in Germany can still be worth it. Because the topic of pension savings plays a particularly important role in deciding on the form of housing. While tenants have to calculate high housing costs for their entire lives, many landlords pay off the loan before retirement age, so they have lower living expenses. Another plus for home buying is design space. Buyers can change the appearance of the apartment without consent, as well as invest in their own apartment. Even if there is a change of residence after a few years, the property can either be rented out, or probably even sold with an increase in value.

    What additional costs the buyer assumes for these benefits is a purely individual decision. But there are many cities in which there is an additional burden on the loan. In Cologne, tenants pay only 10 euros less than apartment owners. Even in the capital, the difference is small: in Berlin, buyers pay 100 euros more for loan repayments than tenants. Even in other large cities such as Essen (€ 40), Dortmund (€ 50), Bremen, Hanover (€ 90 each), the differences are still relatively small. Even in Düsseldorf or Nuremberg (180 euros each), the move to home ownership can still make financial sense.

    From Oberhausen to Chemnitz: apartment buyers live cheaper here

    In 24 of the 75 cities studied, buying is even cheaper than renting. Many of the cities are located in the Ruhr region (North Rhine-Westphalia), where prices for inexpensive apartments in Germany are still relatively low. In Oberhausen, an apartment of 80 to 120 square meters in the median costs only 137,000 euros. With funding over 15 years, this will give a monthly rate of € 410. In contrast, the average rent is 580 euros, which is 170 euros more than repayment. Near Bochum (€ 170), Gelsenkirchen (€ 120) and Krefeld (€ 100) have similar purchasing requirements. But it's not just NRW that has cities where annuity beats rents for relatively inexpensive apartments in Germany. Kaiserslautern, Hildesheim (140 euros each), Saarbrücken (110 euros),

    Comparison of rent with monthly annuity / credit in 75 major cities in Germany:

    Town Rental offers Credit upon purchase Difference rent / loan

    Munich 1.740 € 2.400 € -660 €

    Potsdam 1.040 € 1.560 € -520 €

    Hamburg 1.240 € 1.680 € -440 €

    Frankfurt 1.350 € 1.770 € -420 €

    Ingolstadt 990 € 1.330 € -340 €

    Lubeck 860 € 1.190 € -330 €

    Munster 960 € 1.250 € -290 €

    Wiesbaden 990 € 1.280 € -290 €

    Erlangen 980 € 1.260 € -280 €

    Leipzig 750 € 1.030 € -280 €

    Dresden 870 € 1.140 € -270 €

    Fürth 900 € 1.160 € -260 €

    Trier 810 € 1.070 € -260 €

    Augsburg 980 € 1.230 € -250 €

    Yen 950 € 1.180 € -230 €

    Freiburg 1.280 € 1.500 € -220 €

    Regensburg 990 € 1.210 € -220 €

    Koblenz 780 € 990 € -210 €

    Stuttgart 1.270 € 1.460 € -190 €

    Dusseldorf 1.090 € 1.270 € -180 €

    Nuremberg 950 € 1.130 € -180 €

    Paderborn 720 € 900 € -180 €

    Hall 650 € 810 € -160 €

    Oldenburg 830 € 990 € -160 €

    Aachen 810 € 960 € -150 €

    Ulm 980 € 1.130 € -150 €

    Gutersloh 690 € 830 € -140 €

    Solingen 690 € 830 € -140 €

    Würzburg 950 € 1.080 € -130 €

    Sprout 1.040 € 1.160 € -120 €

    Darmstadt 1.090 € 1.200 € -110 €

    Berlin 1.340 € 1.440 € -100 €

    Kassel 750 € 850 € -100 €

    Mannheim 950 € 1.050 € -100 €

    Reutlingen 1.000 € 1.100 € -100 €

    Braunschweig 810 € 900 € -90 €

    Bremen 800 € 890 € -90 €

    Hanover 890 € 980 € -90 €

    Karlsruhe 990 € 1.080 € -90 €

    Noyce 810 € 890 € -80 €

    Erfurt 810 € 880 € -70 €

    Keel 790 € 860 € -70 €

    Offenbach 1.040 € 1.110 € -70 €

    Leverkusen 750 € 810 € -60 €

    Dortmund 690 € 740 € -50 €

    Osnabruck 730 € 780 € -50 €

    Essen 700 € 740 € -40 €

    Goettingen 870 € 900 € -30 €

    Heilbronn 950 € 980 € -30 €

    Remscheid 560 € 590 € -30 €

    Cologne 1.090 € 1.100 € -10 €

    Magdeburg 580 € 560 € 20 €

    Pforzheim 860 € 830 € € 30

    Bonn 900 € 860 € 40 €

    Bottrop 640 € 600 € 40 €

    Duisburg 560 € 520 € 40 €

    Bielefeld 700 € 650 € 50 €

    Heidelberg 1.150 € 1.100 € 50 €

    Mülheim 630 € 580 € 50 €

    Hamm 590 € 530 € 60 €

    Ludwigshafen 810 € 750 € 60 €

    Herne 550 € 480 € 70 €

    Bergisch Gladbach 850 € 770 € 80 €

    Mainz 1.160 € 1.080 € 80 €

    Monchen-Gladbach 650 € 570 € 80 €

    Chemnitz 550 € 450 € 100 €

    Hagen 520 € 420 € 100 €

    Krefeld 700 € 600 € 100 €

    Moers 700 € 600 € 100 €

    Saarbrücken 700 € 590 € 110 €

    Gelsenkirchen 540 € 420 € 120 €

    Hildesheim 680 € 540 € 140 €

    Kaiserslautern 670 € 530 € 140 €

    Bochum 690 € 520 € 170 €

    Oberhausen 580 € 410 € 170 €

    The annuity / loan rate was calculated for 100 percent financing up to 15 years with an initial repayment rate of 2.0 percent. At the same time, the current market real estate agent in oran park interest rate was adopted in the amount of 1.6 percent. After the loan expires, residual debt remains in all cities. With 100% financing, the buyer pays the additional costs of the purchase with his own funds and takes a loan of more than 100 percent of the purchase amount.