Buy or rent ?

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.

Buy

Rent

Benefits

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

Disadvantages

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…

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