To buy or not to buy an apartment?

Hello,

I moved to Luxembourg a few years ago and I still live in a rented apartment . Of course, I would prefer living in my own apartment/house, but the prices are so high that I would have take the mortage for ca. 20 years. I am 36 now. But when I continue living in a rented apartment for another 20 years, I will pay ca. 360 000 EUR for the rent...I don´t know what is the best solution for me. I am the only provider for my family - wife and 1 child, with the netto salary of 6000 EUR a month. I am also afraid of the real estate bubble in Luxembourg. There are new apartments being built everywhere now, the prices are rising... On the other hand, the economic situation of the whole EU is not so good...I am afraid that I will buy a property for ca. 400 000 EUR (which would be enough for a smaller apartment in Luxembourg) and five years later, the price will fall or so... What do you think? I have a stable job as an EU offical, but who knows what happens in a few years with the whole EU...Would you buy in my situation?

I have been living in Luxembourg for 2 years and i already both an appartment. I think is clear thats the best option. The prices are high but the rents too so at the end you will pay the same, renting or buying. Also the gouverment will help you with some money and you will pay less taxes. Its true that there is lots of new buildings but is because someone buy it. The companys cant start construct a building before they sell 70% of it. Is lots of new arrivals at Luxembourg everydays and that people needs to live somewhere. About the european situation i think it cant get much worst than its right now so....  you should ask some professional. Go to ministere du logement they will help you with your doubts.

Yes there is always a risk that property prices drop, however in my opinion this is unlikely to happen when you consider that during the recession house prices remained fairly resilient in Luxembourg, and there is a serious question regarding how Luxembourg will provide for the expected future demand.

As always, the first question to ask is how long you plan to stay in Luxembourg.

In your rent calculation, I suggest you also factor in the increased cost of renting over time.

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