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.
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.
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.
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.
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.
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.
Do you have any questions or would like to test the real estate franchise?
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.
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!
The E1 Investments concept offers a proven system for the solid development of a business as a broker and owner of a real estate business. E1 Real Estate has the infrastructure and operating systems that enable us to offer first-class services with a team of brokers. You are investing in the market of the future.
With just one shop, you’re in the fast lane! Get in touch now!
Real estate prices analysis for 80 locations throughout Germany
E1 Holding offers location analysis for real estate for almost 100 cities nationwide in all federal states. Our well-trained experts for real estate and investments as well as off-market real estate in various locations and sizes take a professional and authentic look at the real estate market at the respective location. In doing so, we determine realistic and continuously updated real estate prices depending on the market situation as well as a corresponding real estate forecast. We are constantly expanding the list of alphabetically ordered locations and intensively expanding the data base for more and more cities. In addition to investors and investors with budgets of all sizes, our nationwide location analyses are also valuable for housebuilders when deciding on a location. Click here
Stay up to date
Current Report on the International Investment Real Estate Industry – June 2023 By E1 Holding The investment real estate industry is facing new challenges and changes driven by the current economic situation and the real estate market. E1 Holding has closely monitored these developments and would like to provide you with an up-to-date insight into
Agency law from December 2020 What do real estate agents have to pay attention to from 23.12.2020? For information for our brokers and E1 licensees: Shortly before Christmas, there was a change in the brokercommission commission: the new law on brokerage commission from 23 December 2020 was already adopted by the German Bundestag in June
E1 Holding expands with 3 further Locations 2 x Berlin and 1x Cologne E1 Holding expands with three other locations Despite Corona, the real estate market is booming, and E1 Holding continues to grow successfully. In Germany, three new locations are now added to the existing 43 locations. Two of them are located in Berlin,
Topic End-of-year business in real estate End-of-year business real estate End-of-year business real estate – High Noon for real estate agents, investors and property owners It is well known that, in terms of average annual turnover, most transactions take place on the real estate market around the turn of the year. This applies to both
Real estate bubble Germany Threatens a Massive Crash? Property prices in Germany have increased significantly in recent years. After the global housing crisis just over a decade ago, fears are once again being raised that there could be a housing bubble in Germany. Experts warn that in many regions of our country, house and condominium
When do real estate prices fall? The real estate market follows different rules The real estate market follows different rules from the markets of other products. Who simply refers to the law of supply and demand in response to the question “When do real estate prices fall?” definitely falls short. For example, the real estate
Find real estate agents A small detached house Buy or sell a small detached house or condominium – the easiest and safest way to do this is through the mediation of a local real estate agent. You can find the best real estate agent if you make a thorough comparison in advance. Check (,) the
Successful even in times of crisis with real estate The Corona crisis has The Corona crisis has long since reached the real estate market. This raises the interesting question of whether a real estate agent or a real estate investor is actually one of the winners or the losers of this crisis. Surely one or
Investors are looking for real estate like never before! It’s not a new insight from the Corona Crisis that investors flee in times of crisis in tangible assets such as real estate. This is no different during the Corona crisis. However, as a real estate owner, real estate investor, or real estate agent, you should
