• Germany's news in English
 
jobs_header_v3

A third of renters can afford own home

DPA/The Local · 5 Jun 2014, 09:45

Published: 05 Jun 2014 09:45 GMT+02:00

Facebook Twitter Google+ reddit

A study by Sparda-Bank showed that a monthly net income of €1,500 would be enough to buy a property, although this does vary from region to region.

Bremen is one of the cheapest areas in Germany to buy a house. You need 4.3 times the annual net income there, while Munich is the most expensive. Buyers would need their entire net income for almost ten years to buy a house outright. The average home in Germany costs €223,000. 

The report said that at a time of low interest rates on mortgages, buying a property in many regions was financially more viable than renting. On average a family home in Germany costs around five years of a household’s net income.

According to figures released by the Federal Office of Statistics for last year, 43 percent of the 40 million households in Germany owned their own houses or apartments, with 57 percent renting.

This ratio has not changed in ten years. “Germany tends to be a nation of renters,” said Michael Voigtländer, a real estate economist from the IW institute in Cologne.

For many years the tax system in Germany was geared towards renting, while buying your own property was not worth it, said Voigtländer. But this is now changing.

In 2009 buying was more financially attractive than renting in only seven percent of German districts – this increased to 27 percent in 2013.

The main reason for this turnaround is the sharp drop in interest rates. They have fallen from an average of 4.4 percent in 2009 to 2.8 percent last year.

But Ulrich Ropertz from  the German Tenants' Association warned against a hasty purchase. "There is no guarantee that interest rates will still be so low in ten years,” he said.

SEE ALSO: Should rents in cities be capped?

For more news from Germany, join us on Facebook and Twitter.

DPA/The Local (news@thelocal.de)

Facebook Twitter Google+ reddit


Your comments about this article

Today's headlines
Temperatures rise as sunny winter weather continues
A wintry countryside scene in Brandenburg on Monday. Photo: DPA.

The days are sunny and the nights are cold across Germany, but weather forecasters predict higher temperatures as the week goes on.

In Pictures
1,000 sprinting Santas take over small German town
From Lapland to lap times: Santas shed the pounds. Photo: DPA

Nearly 1,000 bearded, red coat-wearing runners took over a small Brandenburg town on Sunday - here's why.

Germany bucks global trend, sells more weapons
A Puma tank used by the German military. Photo: DPA.

Weapons sales around the world decreased last year, despite various ongoing military conflicts. But major German firms actually greatly increased their sales at the same time.

Teen's murder-rape arrest reignites refugee debate
Flowers and candles set up in Freiburg to honour the student found dead. Photo: DPA.

The German government pleaded for calm on Monday after the arrest of a teenage Afghan asylum seeker for the alleged rape and murder of a German student triggered fresh criticism of the country's liberal refugee policy.

China criticizes US for blocking sale of German firm
Aixtron's headquarter in Herzogenrath in North Rhine-Westphalia. Photo: DPA

The US is reportedly worried that China could use the firm's technology in its nuclear programme.

Germany should deport sick refugees: Merkel party mate
Rejected asylum seekers in Leipzig being taken to the airport. Photo: DPA.

A top member of Chancellor Angela Merkel's conservative CDU party on Monday defended his proposal for Germany to deport sick refugees after receiving harsh criticism.

Rail worker jailed over train crash that killed 12
Rescue workers at the scene of the crash. Photo: DPA

A German rail dispatcher who admitted that his negligence caused a train crash that killed 12 people has been sentenced to three and a half years in prison.

Why Germany is worried by Italy's referendum result
Italy's Prime Minister Matteo Renzi resigned after a crushing referendum defeat on Sunday. Photo: DPA

Chancellor Angela Merkel lost a key ally on Sunday night.

These are Berlin's seven most exquisite restaurants
Two-star chef Tim Raue. Photo: DPA.

The capital city still hasn't managed to snag three stars in the new 2017 Michelin guide released on Thursday, but it still boasts seven two-star eateries. Here's a look at what they have to offer.

Austrian vote a 'good omen for Europe': German minister
Foreign Minister Frank-Walter Steinmeier. Photo: DPA.

German Foreign Minister Frank-Walter Steinmeier on Sunday said that the far-right defeat in Austria's presidential election was "a good omen" for Europe.

Lifestyle
Nobody does Christmas quite like the Germans.
Sponsored Article
The key to launching your international career
Lifestyle
Our 10-step guide for doing Christmas just like a German
National
Here's why so many Germans vote for the far-right AfD
National
7 events in Germany that'll make December unforgettable
Lifestyle
7 frosty German sayings to make you a winter wordsmith
National
This is how unequal German society has become
National
Six things you should know about the Lufthansa strike
National
9 ways living in Germany will make you a better person
National
These 10 German Christmas markets cannot be missed
Features
8 German words that unlock amazing secrets in English
Culture
10 German words with simply hilarious literal translations
Lifestyle
7 things Germans do that make foreigners feel awkward
International
Why Donald Trump's grandad was booted out of Germany
National
This is what is really inside your Döner kebab
National
Rejoice! Christmas markets start opening across Germany
Education
These German universities are best at landing you a job
Travel
Why Heidelberg is Germany's most inspiring city
Lifestyle
This soppy German Christmas ad will bring you to tears
National
Here's where Germans speak the best (and worst) English
Culture
10 German books you have to read before you die
6,509
jobs available
Toytown Germany
Germany's English-speaking crowd