Buying or renting in Vienna: what suits your situation?
Buying and renting cannot be compared in any meaningful way by simply setting the monthly rent against the loan instalment. The two options tie up your money in different ways and offer different degrees of flexibility. The decisive factors are your time horizon, the total cost and a financial reserve you can sustain.
Account for all the costs
When you buy, the incidental costs of purchase, the financing, the ongoing costs of ownership and any maintenance all belong in the calculation. When you rent, you look at the rent payments, any other costs agreed and possible changes to them. Compare the same standard of home over the same period.
Take equity and the alternatives into account
Equity tied up in a property is no longer available for other spending. Then again, an alternative return or change in value is no guarantee either. Base your figures on assumptions you can justify, and work through several scenarios.
Weigh up flexibility
A planned move, an uncertain household size or a short period of use can change the decision. Selling later also takes time and may involve costs. Ownership gives you scope to shape your home, but it also brings added responsibility.
Do not decide on the best case alone
Check whether your decision would still be affordable if costs rose, income fell or you had to move unexpectedly. Ask for concrete financing offers and contract terms to be explained to you. This comparison is no substitute for an individual financial plan.
A specific question about your property?