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I am currently facing an important decision for my life: I finished studies and will soon enter industry to work. Due to the fact that I will likely earn some money on a regular basis, I want to change my apartment situation and move to another district of my city (with my girlfriend).

The main question is: Should I buy or rent an apartment?

The prices for apartments which I would be interested in lie somewhere between €200k and €300k. Renting similar apartments would cost between €700 and €900 per month. Just on a side note: Of course (I tend to think this is typical behavior), people here say that the real-estate market is a farce and that pricese are much too high, and that it, therefore, doesn't make sense to buy an apartment. I am not sure, if this is just "usual complaining" or if they really have a point. I also don't know how to verify/falsify it.

My question would be: Which factors could help me to decide between renting/buying an apartment.

Of course, I already gave it some thought, and I am aware of the usual things like:

  • Pro buying: If I have "safe" life circumstances (job, income, etc.) and do not plan to move to other cities/countries.
  • Pro renting: I want to be more flexible, possibly changing jobs/cities.

I am also aware that answering this question probably needs some more detailed information on the local property market. Please let me know, if I should provide more detailed info.

I try to give some more context: Currently I tend to be pro buying, mainly due to the following argument. If I want to buy, I need to take a loan and will roughly have a rate of redemption of €900 per month. So to me, it doesn't matter if I use this money to pay a rent, or to repay my loan. Moreover, I read that the rent increases each year due to inflation. The redemption rate of my loan will stay untouched (so that's another Pro for taking a loan and buying). So after ~20-30 years (when the loan is repaid) it will pay off. I am not sure, if this argumentation is correct or if there are any pitfalls...

  • Have you looked at all the other rent vs buy questions here, and their explanations of the trade-offs? Some of these will change depending on where you are in the world, but the principles should be similar. – keshlam Apr 22 '16 at 13:05
  • i read this: money.stackexchange.com/questions/2075/… are there other ones? – beta Apr 22 '16 at 13:12
  • Consider what's included in the rent but is extra when you own. Also, make sure to look at the details. Different types of particularly apartment ownership have different gotchas that you need to be aware of. If you rent, the landlord is aggregating a lot of costs that, if you buy, you will be seeing yourself -- without the landlord's advantage of spreading costs over a large number of tenants, evening out the cash flow. If something breaks in a bought home, it may be a considerable fraction of your income; if the same thing breaks for one of 200 tenants with a landlord, not so much. – a CVn Apr 22 '16 at 21:02
  • okay. do you have an hints on what is typically included in a rent, but what has to be taken care of separately, if I am the owner? – beta Apr 25 '16 at 9:55
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    capital of austria – beta Jun 27 '16 at 9:12

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