Might the owners be forced to sell vacant properties soon?

The industrial union Construction-Agriculture-Environment demands that real estate that has been vacant for at least three years has to be offered for sale.

Policy instead of expropriation.

Speculation and abandoned building plots cannot be afforded by the current housing shortage and housing shortage throughout Germany. As a result, the Industrial Union plans to make it obligatory for owners to sell their unused property. Once a property has been vacant for at least three years, owners should be forced to put it up for sale. Consequently, cities and municipalities should get the right to purchase the property. The price should not be set by the owner himself, but should be determined by an independent expert.

In that case, if owners should refuse to sell, the intention is to enforce a compulsory sale at market value. In this case, however, the industrial union rejects the accusation of expropriation and emphasizes that the measure is an act in the sense of the principle of “ownership obligation”.

It remains to expect the demands of the Industrial Union will be accepted and implemented.

Source: www.anlegen-in-immobilien.de             Picture: www.pixabay.com


Real estate prices will not drop for now

Real estate prices could be leaving out in 2020 despite the continuing real estate boom. Although dropping prices on the market are still unlikely this year, the price level should now develop more slowly, according to building loan agency Interhyp.

Consumer’s tolerance limit defines the ultimate price level.

The real estate market should increasingly calm down and stabilise. The increase has been slowing since the third quarter of 2019.

Although this forecast cannot be generalised for every German city, it is still considered that at some stage price levels will be attained at a point where people will show caution.

Source: www.anlegen-in-immobilien.de             Picture: www.pixabay.com



Maintenance or Modernization ?

Low property rate and non-informed tenants

After Switzerland, Germany is the country with the lowest property rate with 53 percent in Europe, far behind countries like Sweden, Belgium and even France. As a result, the percentage of tenants is quite high making it increasingly difficult to find an affordable apartment, which also increases the power of landlords to negotiate with tenants.

Maintenance or modernisation

In many cases, the difference between maintenance and modernisation is minimal. For example, in the event of leaking windows, the landlord has two options. On the one hand, the leak can be resealed with a rubber seal, which would then be a maintenance measure, but on the other hand, the house owner can install new functional windows, which would be considered as modernisation. The landlord is not prescribed which actions to take, because it is only specified that a landlord has to maintain the condition of the apartment.

Source: www.anlegen-in-immobilien.de                             Picture: www.pixabay.com