Ist Miete wirklich rausgeschmissenes Geld? Mieten oder Kaufen Rechner | Finanzfluss

Summary

In this video, Thomas from Finanzlos delves into the topic of whether it’s financially better to buy or rent a home. He discusses the pros and cons of both options, highlighting factors such as forced savings with home ownership, flexibility with renting, and potential for wealth-building through different asset classes. Using a custom-built calculator, Thomas compares two hypothetical cases of individuals deciding between buying or renting. The video aims to provide a helpful, neutral comparison, while emphasizing that the final decision depends on various assumptions and personal circumstances.

Takeaways

• 😀 Buying or renting a home is one of the biggest financial decisions in life, and it requires careful consideration of various factors.
• 😀 The video discusses a new calculator tool that helps users determine whether buying or renting a home is the better financial option for them.
• 😀 Buying a home offers 'forced saving' through mortgage payments, which can be a disciplined way to build wealth compared to discretionary savings like ETF investments.
• 😀 One significant advantage of owning a home is the ability to customize and personalize the property, providing a high degree of flexibility in design and living arrangements.
• 😀 Renters have the benefit of not paying interest on loans or handling maintenance costs, which are usually covered by the landlord.
• 😀 Renting offers flexibility, particularly for younger individuals or those frequently moving for career opportunities, as it avoids the long-term commitment of owning a property.
• 😀 A downside of buying a home is the concentration of wealth in real estate, which may limit the ability to diversify into other assets like stocks or bonds.
• 😀 Real estate prices and rental costs often rise in tandem over the long term, so renting doesn't necessarily shield you from increased housing costs.
• 😀 The calculator compares two scenarios: one where a user buys a property and another where they continue renting and invest in ETFs. It helps visualize the financial implications of each choice over 20 years.
• 😀 The calculator also factors in key costs of purchasing a property, such as additional fees (notary, registration), maintenance, and loan interest, to provide a more accurate financial comparison.
• 😀 The decision of whether to buy or rent ultimately depends on personal circumstances, such as the amount of savings available for a down payment, monthly income, and long-term financial goals.

Q & A

What is the primary focus of the video?

The primary focus of the video is to explore the financial pros and cons of buying versus renting a home, helping viewers decide which option is more suitable for them.

What tool is introduced in the video for financial comparison?

The video introduces a financial calculator tool that allows viewers to compare the costs of buying a home versus continuing to rent, based on personal financial factors like income, savings, and expected investment returns.

How does buying a home provide 'forced savings'?

Buying a home through a mortgage forces the buyer to make regular payments toward the mortgage, which is considered 'forced savings' since the homeowner must pay off the loan every month, regardless of personal circumstances.

What are some key advantages of buying a home?

Key advantages of buying a home include forced savings through mortgage payments, greater freedom to customize the property, and the long-term benefit of not having to pay rent once the mortgage is paid off.

Why is renting considered more flexible than buying?

Renting is considered more flexible because renters are not tied to a property and can move more easily, making it ideal for individuals who may need to relocate frequently for career or lifestyle reasons.

What financial risk does buying a home carry compared to renting?

Buying a home can create financial risk due to the large amount of money tied up in the property, making it harder to diversify investments. Renters, on the other hand, have the ability to invest in other assets like stocks or ETFs.

How do maintenance costs factor into the decision to buy a home?

Maintenance costs are an important consideration when buying a home. Homeowners are responsible for repairs and upkeep, which can add unexpected expenses, while renters are not liable for maintenance costs, as these are covered by the landlord.

What did the video reveal about Mirko’s decision to rent or buy?

For Mirko, the video demonstrates that it is more financially advantageous for him to continue renting, as buying a home would result in a higher overall cost due to mortgage payments, interest, and maintenance costs, leaving him with less savings over time.

What is the significance of the 5% annual return in the calculator’s model?

The 5% annual return is an assumption used in the calculator for the potential gains from investing in stocks or ETFs. It represents an average expected return on investment over time, though actual returns can vary.

What assumptions are made in the calculator regarding future costs?

The calculator assumes constant factors like a 1.9% mortgage interest rate, 1.2% annual maintenance costs, and no changes in property or rental prices. However, it acknowledges that these assumptions may not reflect reality, as these factors can fluctuate over time.