Error in financing?

If you calculate nicely with a 3.5% annuity and omit the maintenance (-reserves), it can definitely work, as the example shows.

So far, I cannot confirm that rent is cheaper than home financing.

In our own case, the basic rent (650 euros) in the old apartment was just as high as the installment (the first 3 years 500, then 667 euros, after 5 years 697) that we now pay on the house. And we had 70 sqm and no garden. Compared to now 200 sqm, 2 garages and 700 sqm plot. The additional costs have remained the same except for reserves.

Property (whether new or existing) is a luxury and costs almost 100% more than a rental apartment. I want someone to prove the opposite first..

So – maybe I am misunderstanding the post from as well. But she writes that rent is not always cheaper than homeownership and gives her own example.

In her example, paid 650 euros basic rent for a 70 sqm apartment without a garden. On the other hand, there are almost 700 euros for 200 sqm + 2 garages + garden. Additional costs are equally high (except for reserves).

I can twist and turn it however I want: gets significantly more in her case with the monthly burden for property than if she had stayed in her rental apartment. For almost the same amount, she now has 200 instead of 70 sqm plus 2 garages and garden.

If you now translate this to an equally sized (comparable) apartment, this 200 sqm apartment should cost significantly more in rent than the expense for her 200 sqm house. From this perspective, would presumably also have had significantly higher additional costs for a 200 sqm apartment than she now has to pay for the house.

Maybe you explain to me why ’s example is flawed?

Btw. , your circumstances are actually unusual. I really cannot explain such conditions in the same area. As a rule, high rents are paid when living space is scarce. But then the purchase prices of real estate also rise (supply - demand). Or did you have a change of location (longer distance), e.g. from FFM to Alsfeld?

I do not know Elina’s financing.

I don't know Elina's financing.

My post referred to the example of the friend. See here:

I just helped a friend with the apartment search. She was looking for something around 80 sqm here in the countryside, with a small garden for the dogs. The cheapest started at 600 cold, with said 80 sqm and a tiny garden area (terrace with a 1 m green strip around it). Since it was unclear whether she would get the apartment with 3 dogs, I casually looked a bit further and ended up with a terraced house, 120 sqm with a "real" garden, for 119,000 euros. The rate would have been only 350 euros including 2% repayment, so significantly less than the much worse rental apartment. Only the friend would not have gotten a loan

So - maybe I’m misunderstanding the post by .
But she writes that rent is not always cheaper than homeownership and gives her own example.

In her example, paid 650 euros cold rent for a 70 sqm apartment without a garden.
On the other hand, there are almost 700 euros for 200 sqm + 2 garages + garden.
Additional costs are the same (apart from the reserves).

I can twist and turn it however I want:
receives significantly more in her case with the monthly burden for ownership than if she had stayed in her rental apartment.
For roughly the same amount, she now has 200 instead of 70 sqm plus 2 garages and a garden.

If you now were to compare this to an equally sized (comparable) apartment, this 200 sqm apartment should cost significantly more in rent than the cost of her 200 sqm house. From this perspective, would probably also have had significantly higher additional costs for a 200 sqm apartment than she now has to pay for the house.

Maybe you explain to me why example is flawed?

Based on the posts and some pictures from , I assume that her house is a larger renovation project, which is being turned into a charming little house largely by her own effort (respect for that).

To be fair, I would also have to consider the time and costs for the renovation. These probably amount to a fairly substantial sum monthly, since the time invested in total would easily correspond to another part-time job.
Alternatively, only a rental property that requires a major renovation could be considered.

You can't really say that in general. There are very specific situations where owning property is actually cheaper than renting. For example, when you inherit a house but if you calculate it fairly 1:1, rent is usually still cheaper. One thing you must never forget as an owner: you are always responsible for maintaining the value of the property. This responsibility ALWAYS costs money. As a tenant, it doesn't matter at all if the heating breaks down in winter or not. The landlord/owner has to take care of it and will quickly get hit with a rent reduction (heating failure in a cold winter up to 100% rent reduction!). With your own place, you have to act quickly before all the water pipes freeze and it gets really expensive (cheers to the people with a fireplace who can save the house from freezing to death ).

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