Owning your own four walls has become more affordable, even if purchase prices for condominiums have risen again slightly compared to the same quarter last year. Falling interest rates and rising incomes are making it easier to buy a home.
This is shown by the latest results of the IW Housing Index. The reason: households have more money in their wallets than two years ago - thanks in part to successful wage settlements. At the same time, interest rates are falling, which makes financing easier. However, the overall picture also includes the fact that property has become significantly more affordable over the past decade. At the beginning of 2018, a family had to spend less than 30% of their monthly household income on a home. However, the German Economic Institute (IW) is convinced that there will be no return to this level in the medium term.
The rental price situation remains tense: Compared to the previous year, new contract rents in Germany rose by 5.2 percent, and in the seven largest cities by as much as 7.2 percent. Rents are rising, while prices for real estate and loans are falling or stagnating. This raises the question: is now the right time to buy a condominium?
If you want to invest, you should weigh up all the pros and cons and familiarize yourself with the special features of condominiums. Stiftung Warentest's "Condominium Handbook" provides practical knowledge about owning your own four walls: from the right choice of apartment and the right financing to management issues and value-enhancing measures.
For both owner-occupiers and landlords, buying a home is interesting from a long-term financial perspective. Some save on rental expenses, others have additional income. The handbook highlights the special features of a condominium and shows how prospective buyers can find the property that best suits their individual requirements and financial possibilities. The guide also explains all the legal basics of renting, management and management contracts when buying an apartment as an investment.
Photo: © Klaus Päth, Pixabay
