Given the current low interest rates, it is not surprising that many young people are considering buying a home. Instead of building equity for several years and later financing it at high interest rates, they’d rather take the opportunity now.
Buying or even building a property at a young age but wants to be well considered. It offers opportunities, but also brings with it certain risks. Below we explain how Pro and Contra are in detail.
A look at the opportunities
Avoiding rental costs : From a purely cost-technical point of view, financing and living for rent are often the same. But whoever finances pays off his own property. In the long term, this results in a significant financial advantage. Once the property has been paid off, a lavish cost savings are attractive.
Hedge against rising house prices : If the situation is right, the prices for home ownership know only one direction. The sooner the acquisition takes place, the more likely it is to hedge against rising real estate prices. This too can result in a decent saving.
Benefit from interest rate advantage in low-interest phase : If the Eigenheim acquisition takes place during a low-interest phase, can also use an interest rate advantage.
Where the risks lurk
Binding to place : Especially young people need to be flexible with regard to the professional world. A home can quickly become a block on the leg, which limits the personal options or even requires a later sale of the property.
Suitability of the Property : Young people have different needs than families. It is possible that a property will be purchased that will not be enough a few years later, as, for example, a larger space requirement exists.
Package can not say whether a real estate acquisition is recommended or rather discouraged. Instead, it all depends on the personal situation. Anyone who is aware of the opportunities and risks can usually weigh well whether the purchase of a property is already recommended or whether it is better to wait a few more years.