Real Estate

Real estateHow to buy a house at any age

New apartments in Feldkirchen near Munich
New apartments in Feldkirchen near Munichimago images / Sven Simon

Is there the perfect age to buy property? If you look at the statistics alone, the answer seems clear. Whoever buys a house or apartment in Germany for the first time is 39 years old on average, goes to the database of the mortgage broker Dr. Small out. Most buyers choose a property between 30 and 50 years old. This is not surprising: Home ownership is usually one of the greatest investments in life – so most people take the time to make this decision.

A good reason to buy at the end of 30 is that life at this age usually runs in an orderly fashion. As a rule, you have found a permanent job and center of life where you want to build something. The money is enough to no longer live from hand to mouth. Often, the rental apartment at this age is simply too small because there are young people on the move. Your own house then appears as the next logical step.

Every real estate financing is individual

Sometimes life also plays differently and the desire for your own four walls arises only beyond the 50th or much earlier, in the twenties. While young buyers wonder whether they can even make such an investment, shortly before retirement people are often tormented by the thought that they have already missed the right time to buy a house. The following applies: “There is simply no perfect age for home finance,” says Henrik Prüß, Dr. Klein specialist in home finance. Every real estate financing is too individual for that. Nevertheless, there are certain peculiarities in the different phases of life that home buyers should take into account when planning.

Buying a house at a young age has its charm. Anyone who buys a house in their twenties has mostly paid off the property before retirement and can live longer without a rent. In practice, the dream of owning a home in adolescence fails primarily because of the necessary equity. As a rule of thumb, buyers should be able to handle at least the additional costs for brokers, land register entry and notary public out of their own pockets. They are usually 10 to 15 percent of the total. With a purchase price of 500,000 euros, that’s already 50,000 euros that the buyer has to raise – and then still not a cent of the property is paid off. “Very few prospective customers have usually saved a sufficient amount at this age. As a result, the dream of owning a home can become significantly more expensive due to poorer conditions, ”says Prüß. Young buyers should therefore not be too hasty and prefer to save something first before they fulfill their dream.

Higher redemption rates among older buyers

Borrowers who want to fulfill their dream of owning their own property at around 50 years of age usually have more money on the high edge, but at the same time are under particular pressure: in mathematical terms, they have less time to repay the building loan. Therefore, they have to raise significantly more equity in order to be able to pay a larger part of the purchase price in addition to the purchase costs. Regardless of the age of the buyer: until retirement there should only be a manageable remaining debt. If you want to buy a house or apartment at an advanced age, you often have to adjust to significantly higher repayment rates, says Dr. Klein expert Prüß.

However, personal life planning and the respective financial security are much more important than the time for buying a property, emphasizes Prüß. When deciding for or against a purchase, interested parties should also keep an eye on the current interest rate level and the market prices in the respective region. “These are always reliable indicators that work for every phase of life and offer the customer a good orientation as to whether a property purchase is currently worthwhile.”

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