Buying or renting are for me the consequences of different strategies which are dependant of what you expect for your future.
Everybody has its own situation that there is not a unique solution for all.
I am proposing here below a table listing what I consider Benefits and Disadvantages for Buying and Renting.
|Once your home found, the property value should increase||Once your home found, the property rent is fixed for the contract duration|
|You can make refurbish your home at your convenience provided you are following the urbanism and construction laws||Flexibility = Good enough if you expect to stay at least 2 years in Luxembourg|
|You can sell your property in the future to buy another (bigger) one in the future without loosing purchasing power||You can rent a property you might not be able to buy|
|Good if you know you will stay more than 2 years in Luxembourg|
|You need to bring enough cash for the loan down payment||Not quite easy to refurbish your home|
|loan on a long term basis||2-3 months rent given cash to your landlord|
|You need to stay at least 2 years in your home if you are beneficiary of the Bellegen Akt||You are dependant of your landlord : if the landlord die or his selling to someone else, you could be asked to leave your home asap (law says that you have the right to stay 6 months and renewable 1 time)|
|You could have to pay huge penalties if you want to payback your fixed loan before the end of the contract||If you want to change home, then you will probably see the rent increasing|
|Be carefull with the inventory of fixtures when moving in/out|
|You might not be able to buy a property you could afford while renting||Sometimes, contract contrainsts as for example yearly visit of the landlord, declaration of number of people living in the property|
|You pay rent, but the money is gone forever|
You are seeking for a personal advice, a support in your home search, then this solution could make your life easier…