Rent vs Buy Calculator
Should you rent or buy a home in Germany? Compare the long-term financial outcome with our free calculator, including German property transfer taxes, mortgage rates, and investment returns.
FAQs
It depends on the city, your time horizon, and financing terms. In expensive cities like Munich, renting and investing the difference often wins over 10-15 years. In smaller cities with lower prices, buying can be cheaper after 7-10 years.
In Germany, expect 7-12% of the purchase price in upfront costs: Grunderwerbsteuer (3.5-6.5% depending on state), notary fees (~1.5%), land registry (~0.5%), and agent fees (typically 3-6% split between buyer and seller).
Banks typically require 20-30% of the purchase price as equity, including all closing costs. Some banks offer 100% financing but at higher interest rates. Having more equity gets you better mortgage terms.
Beyond your mortgage payment, budget for: Hausgeld/Nebenkosten (€2-4/sqm/month), maintenance reserve (1-2% of property value/year), property tax (Grundsteuer), and insurance. These can add €300-600/month for a typical apartment.
Investment properties offer tax benefits that owner-occupied homes don't — mortgage interest and depreciation (2% AfA) are deductible against rental income. Many choose to rent where they live and buy an investment property instead.
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