Buy or Rent, That Is the Question Here

For many people in Austria, owning a house or apartment is one of their greatest wishes. But before deciding to buy, it is worth examining whether a rental apartment might be less expensive and better suited to one's own needs.

Whether buying an apartment or a house in Vienna or the greater Vienna area is better than renting depends on key figures such as the rent level, the price of the desired property, mortgage interest rates, the monthly loan repayment amount and the duration of the financing – and not least on the available equity and personal income.

Calculation – How long could you rent an apartment for the purchase price? A key figure that tells us whether a property tends to be overpriced or affordable is the buy-to-rent indicator. This calculates how many years one could rent an apartment in order to reach the average purchase price of owner-occupied property in the desired region – without mortgage, maintenance or operating costs, which are additional expenses for owners.

What pays off – The lower the buy-to-rent ratio, the more worthwhile it is to purchase your own home, and the higher the achievable return for investors.

With a buy-to-rent indicator in Vienna of up to 30, buying is advisable; at a value above 30, renting is more sensible from an economic perspective.

Brief, simplified calculation example – An apartment with a total monthly rent of €1,000 costs €12,000 per year. Whoever buys this property would have to pay €300,000 – a term of 25 years at €12,000 annual rent equates to a purchase price of €300,000.

CONCLUSION: after 25 years of renting, the purchase price would have been reached.

Weigh it up. There are good arguments for both renting and buying – and not only purely economic ones. Are you a renting type or a buying type?

Has only little equity available, possibly also a poor credit rating, and therefore not much money left over each month. It may be necessary to change place of residence frequently for professional or personal reasons, hence also little interest in expensive repairs or renovations.

Whether it should be one's own property or a rental apartment is ultimately also a matter of personality type. Even though many people dream of owning their own four walls, young people in particular want to remain professionally flexible, and this also affects their living situation.

However, those who rely on security and "Betongold" (investing in bricks and mortar), wish to settle down on a longer-term basis, and structure their financing so that the loan is paid off as far as possible before or shortly after retirement, appear to be the primary type suited to purchasing a property.

As 4M Immobilien, we purchase apartments, houses as well as apartment buildings and plots of land in Vienna and the Vienna area together with our business partners and investors.

With the help of a free valuation, we determine the actual market value of your property together with you.

Should a property not be of interest to our investment group, we offer the owners professional marketing, see diagram.

Should you be interested, even just in a very general sense, in top-tier property financing, in all cases I am available for any further questions and information at.

Robert SCHMID [email protected] +43 676 541 1767 https://4m-immo.at/