[mawadev]

I really like this analysis. Considering this is written for america, a lot of these points somewhat apply to germany. Over here homeownership is pretty difficult. I put that decision away until I'm 35 or 40 and absolutely have to stay in one place because of kids and so on. I feel like I have more psychological safety when I rent and can move away whenever I want to, have a pile of cash and investments that pay the rent for a decade. I can't wrap my head around pulling most of your savings into a loan and then paying more or equal monthly than what you would pay for rent...

I feel like renting your first 1-3 flats in different cities is a valuable learning experience. You will learn where you want to live, what is important in a flat, its layout and its utilities and materials. It will save you a ton of money longterm if you know how thick the walls, well isolated the windows, locality of things and many other facets have to be...

[ricardobeat]

Is Germany more like the US? In the Netherlands, before 2020, the cost of getting the loan was negligible. For a while earlier, it was zero - all transaction and notary costs could be included in the mortage. You could literally buy a house with €0 in your bank account, as long as you had the necessary income.

These days it's not so easy, prices have risen by 50%+, but you still pay less on a mortage than the equivalent rent, by a large margin. Renting (if you can buy) is pretty much throwing your money away.