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Michael Schier / Michael Voigtländer IW-Trends No. 2 25. June 2014 Renting or Buying

A County by County Analysis for Germany

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Renting or Buying
Michael Schier / Michael Voigtländer IW-Trends No. 2 25. June 2014

Renting or Buying

IW-Trends

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A County by County Analysis for Germany

In Germany owner-occupied houses and flats are taxed very differently from those that are rented out. While owner-occupied homes are treated as a consumer good, real estate which is let is regarded as a capital investment. As a result of this unequal treatment, the relative advantage of buying one’s own home varies over time. Due to the highly favourable trend in interest rates, owner-occupying has in recent years become considerably more attractive. As an evaluation of residential property offered and sought on ImmobilienScout24, Germany’s largest online real estate marketplace, shows, there is a good chance that the proportion of owner-occupied homes will continue to increase in the next few years.

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Renting or Buying
Michael Schier / Michael Voigtländer IW-Trends No. 2 25. June 2014

Michael Schier / Michael Voigtländer: Mieten oder Kaufen – Eine Analyse für die deutschen Kreise

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