In Germany, it was cheaper to buy than to rent residential property in 2021. That is according to the Accentro Housing Cost Report 2022. Compared with 2020, the cost advantage of using a condominium over a comparable rental apartment increased by around three percent, according to Accentro. In almost all (399/401) of the German counties and independent cities surveyed, owners had to pay less than tenants, according to the report. While new tenants had to pay around 10.30 euros per square meter, owners of comparable apartments had to pay only 4.21 euros per square meter.
"According to our Accentro Housing Cost Report 2022, last year was a very good one for homebuyers. The cost benefits for owner-occupiers have continued to rise, albeit moderately, to almost 60 percent, which is huge. In view of the high real estate prices and rising rents, home ownership is still the best form of private retirement provision," explains Lars Schriewer, CEO of Accentro Real Estate AG.
The Accentro Housing Cost Report was produced in cooperation with the Institut der deutschen Wirtschaft (IW). It has already been published for the seventh time. For the comparison between owners and landlords, the IW takes into account various factors such as net cold rents and owner-occupier costs. Owner-occupier costs comprise the purchase price, incidental acquisition costs, mortgage interest and lost interest (opportunity interest) on equity capital, as well as repair costs. Impairment (depreciation) is also taken into account.
Source and further information: accentro.de
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