Why should you buy a property in Germany?

The mentality in Germany is a little different. Renting is still a popular option. Even if they can afford to buy a property in Germany, I know many locals who rent their homes.

Many of them are simply content to rent, and they pay such a low rent since they have rented the same house for a long period. Furthermore, many Germans, in my opinion, dislike taking risks. Taking out a large loan to buy a house in Germany is regarded dangerous for them.

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In fact, in Germany, the homeownership rate is slightly below 50%. It has one of the lowest rates among European countries. However, because of the low interest rate, the ratio is increasing.

Reasons to buy property in Germany

Low interest rate

For several years, the European Central Bank’s interest rate has been exceptionally low and constant. It means you may receive a mortgage from a bank for as little as 1% to 2% interest. As a result, it is preferable to invest in propery than leave your assets in a bank account where you will earn nearly no income.

Stability

You never know what will happen when you are renting a flat in Germany at a low rent right now. I know someone who have been renting their apartment for a long time. Their landlord intended to reclaim the flat at some point so that he could move in himself. They had been paying a low rent for years because the landlord had not raised the rent significantly. After they moved out, they were unable to find another flat with such a low rent.

You have more control

When you own your home, you have a lot more freedom in terms of how you want it to look. You can, for example, make structural alterations such as adding an extra room; you can have as many pets as you want; you can choose the type of floor or heating you want, and so on.

In our instance, we started from the ground up. So we chose our floor tiles, opted on an open kitchen, added extra doors in front of the stairwell because we had little children and animals, and built a large bathroom… Essentially, we designed our home to meet our specific requirements.

Good and stable investment

Unlike other investments such as equities, the value of real estate does not change as dramatically. In addition, if you sell your home after ten years, you won’t have to pay the capital gains tax of 25%. As a result, purchasing a home in Germany is a sound long-term investment.