Buy a rental apartment: What needs to be considered?

What needs to be considered?

From a purely legal point of view, the term rental apartment describes a collection of several premises. Originally considered, “apartment” or “living” means “be satisfied” and “stay”. Due to today’s social development, an apartment is part of a basic human need. Living spaces can either be purchased or used by rented accommodation. For many people, the latter is an option to circumvent the great obligations of a purchase.

The apartment from a legal point of view

In order for an apartment to be considered as such, it is necessary to maintain an independent household and to complete the apartment itself. There must also be a toilet, shower or bathroom. The living space must be at least 23 square meters in order to be considered an apartment. In the tenancy law, however, the apartment was defined somewhat differently. It is clear from the Federal Registration Act 20 that any enclosed room can represent an apartment, provided it is used for living or sleeping. No matter where this room is located. Thus, an apartment can also represent a tent or a furnished room or a construction car. An apartment is subject to the law of the house and is considered from a legal point of view as a personal living space. This house law was described in the Basic Law and from then on protected. Thus, the inviolability of the apartment is guaranteed, whether the apartment has been rented or you own it yourself.

Is a rental apartment worth it?

Rental apartments are now scarce in many regions and are a major issue, especially in the seven most well-known German cities. If not a problem, because housing is becoming more and more expensive. Currently, the rental and purchase prices of real estate are extremely high, so that many tenants wonder whether the rent is still worthwhile. But it is not always financial aspects that speak for or against renting. Personal circumstances must also be appropriate for the purchase of a property to make sense.

A rental apartment is of course the responsibility of the landlord. This means that the landlord, as the owner, has to assume all the duties in terms of renovation and refurbishment. He is responsible for the tenant’s ability to use and inhabit the rental apartment appropriately. Broken heating systems, crowded basement rooms and leaking windows are not the tenant’s problem. They even have a right to have various factors in a rental apartment correct. Landlords must therefore take care of the maintenance of the apartment and have various repairs carried out. It is not possible to pass this on to the tenants. Contractual agreement for painting work after the exodus, on the other hand, already.

Tenants pay a contractually stipulated rent for the period of use. This is usually based on the current rental mirror. In larger regions or places where housing is just as scarce, this can be very high. Those who live for years for rent may sooner or later ask themselves whether an apartment can be bought for the same money. The answer at the moment is often yes. If the monthly rate for financing does not meet the monthly hot rent, a rental apartment is hardly worth it. At least if you look at it from the current point of view. After all, it must be clear that buyers of a property can deal with interest rate fluctuations.

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What is the right to buy a rental apartment?

Meanwhile, buying property has become a trend, and many tenants are moving towards home ownership. Unfortunately, many of them approach the matter far too blue-eyed and end up in the rental apartment again. The reason: a bad loan at the bank, the wrong property or unexpected situations that force failure. In order to avoid this, interested parties of condominiums or houses should inform themselves exactly.

Where is the best place to buy a rental apartment?

As a rule, owners are looking in the same region where they used to live in the rental apartment. Anyone who can imagine settling here should also look for suitable objects there. However, it may be financially worthwhile to look a little outside the popular region. Especially in cities, prices are higher than in the surrounding and rural areas. So consider in advance whether you could exchange your rental apartment in the middle of the city for a rural apartment. So the question of the “where” can often save a lot of money.

What can the rental apartment cost?

It doesn’t matter if a home costs 350,000 euros, or 600,000 euros. Although these are very large sums on both sides, price differences in the price of buying a property are noticeable in terms of instalment and interest rate. For most, buying a house or apartment is the biggest investment in their lives. This makes it all the more important that it is sufficiently well planned and put on a safe footing. Only then can it be paid permanently and the monthly instalments to the bank do not become a burden.

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How much equity should you bring?

Do I need equity? In theory, it is possible to buy an apartment or a house even without equity. In practice, however, you will pay for this purchase for the rest of your life. Serious banks therefore recommend that you finance at least 10, better 20, of the purchase amount in the form of equity. Maybe you have a savings account, have shares or securities or a building savings contract? But maybe you already own a plot of land and can now build a house on it. Your assets make it easy to determine how much the property is and how much the monthly charge can be.

A detailed invoice for revenue and expenditure must be prepared in the next step. After all, it is important that, in addition to the instalment payments to the bank, you can continue to make a living. The bank also charges a certain amount per person to cover the cost of living. Income, of course, is primarily income. State benefits such as child benefit or parental allowance also count into the bills. Expenditure is now included in all commitments incurred on a monthly or regular basis. Other instalment payments or loans, contributions to the GEZ, various telephone bills and internet bills are included here. Maintenance or other expenses are included and are important for the invoice.

Now you can calculate your financial viability. At best, you have now calculated a surplus in the revenue-surplus calculation. You will count this together with your current rent and deduct the monthly operating costs for your future home. The operating costs can be calculated at around 300 euros, but this is rather generously determined. If, for example, you have around 1000 euros left, you can calculate interest and repayment on it.

Caution: Don’t forget the additional purchase costs. They increase the actual purchase price again, as this includes the real estate transfer tax, commissions for brokers and notaries and other incidental costs. So, in order for them to be able to repay the instalments, you should consider these initial expenses. At best, you do not have to co-finance these costs, but have them together in advance.

Benefit from low interest rates. At present, interest rates in Germany are almost historically low. Try to tie them to your loan for as long as possible. Some only offer a 10-year fixed rate, others guarantee the interest rate at 20 years. You can use the favorable conditions directly as a higher repayment or pay additionally into the special repayments.

Rent an apartment instead of buying

Of course, it is up to you whether you ultimately decide to rent an apartment. Renting, of course, has many advantages. Your landlord is tied to a rent and cannot raise it arbitrarily and constantly. You are free at any time and can move whenever and as you like. Plus, you don’t have to worry about expensive repairs or dealing with ongoing loans. You may not care about the current interest rates on the market, you pay a rent and use a living space independently of everything else. From this point of view, the rental apartment is worthwhile!

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