Rent or buy: Home ownership is often more realistic than you think
When searching for a home, most people initially focus on renting. However, buying a property can also be an option – often sooner than expected.
Many home seekers concentrate exclusively on rental listings and overlook the fact that the sales market also offers a wide range of suitable properties. It’s therefore worth considering this option as well: it broadens your choices and increases your chances of finding the right home.
Provided affordability is met
The good news: if you want to buy a home, you usually don’t need to cover the entire purchase price yourself. In fact, up to 80% can typically be financed through a mortgage from a bank. The key factor is affordability: ongoing costs – including mortgage interest, amortisation and ancillary costs – should not exceed one third of your income.
To avoid complex calculations, you can easily determine your maximum affordable purchase price: simply enter your equity and income to see what price range is realistic for you. If you’re buying as a couple (or with multiple people), you can of course combine both your equity and your incomes.
Which mortgage is right for you?
There are different mortgage models available to finance your property. The main differences lie in planning certainty and flexibility.
Fixed-rate mortgage
You secure a fixed interest rate for a defined term – for example 5, 10 or 15 years.
- High planning certainty
- Protection against rising interest rates
- Less flexibility if you exit early
- Suitable for: anyone who prefers stable and predictable costs
SARON mortgage
The interest rate is based on the current money market and is adjusted regularly.
- Often favourable when interest rates are low
- Benefits from falling interest rates
- Lower planning certainty
- Suitable for: anyone who wants to remain flexible and accepts interest rate fluctuations
Variable mortgage
The interest rate is set by the bank and can be adjusted at any time.
- Very flexible (often with short notice periods)
- No fixed term
- Generally higher interest rates than other models
- Suitable for: short-term solutions or as a transitional option, e.g. before a sale
In practice, these models are often combined to achieve a good balance between security and flexibility.
Why many people choose home ownership
Owning your own home is more than just a different way of living. For many, it represents a step towards independence and long-term security.
- Build wealth instead of paying rent: part of your monthly expenses goes into your own property.
- More choice on the market: the sales segment often offers a wider range than comparable rental properties.
- Long-term planning certainty: with the right financing, housing costs can be calculated more reliably.
- Freedom to design: you decide on renovations, furnishings and how the property is used.
- Independence from landlords: no terminations due to owner occupancy or restrictions in a rental agreement.
- Long-term perspective: home ownership can also form part of your financial retirement planning.
