NEWS-03

Despite Corona crisis: property prices continue to rise significantly

The pandemic is leaving no traces on the market for single and two-family houses and condominiums. Rents, however, remain stable. Even the Corona crisis cannot stop the price increase for private homes.

In Frankfurt property prices have risen considerably during the corona crisis in Germany. The price increase for single-family and two-family houses continues unchanged. According to the report, prices for single and two-family houses rose by an average of 8.6 percent in the third quarter compared with the same period of the previous year.

This means that properties increased even more than condominiums, which were also significantly more expensive at 5.5 percent. According to the company, which advises cities and municipalities on setting up rent indexes, prices for private property had already risen sharply in the second quarter.

The Corona crisis has also changed housing preferences: In the face of lockdowns and home offices, many people value more living space or outdoor space, a recent survey showed. The areas surrounding metropolises are also becoming more popular.

 

Quelle: handelsblatt.com               Foto: dpa

2020-06-03 (2)

Leipzig’s real estate market is booming like never before!

In Leipzig, land sales and real estate sales last year have been higher than ever since registrations in 1990.

With 3.4 billion euros, sales had reached a peak. In total, almost 7,000 purchases were made.

At 76 percent, condominiums were at the forefront – 11 percent more than in the previous year. In contrast, there was a 10 percent decline in built-up land, which made up 16 percent of the total market. There were only minor changes to the undeveloped land.

Nowhere in Germany are the prices for newly built apartments and houses as high as in Leipzig.

In the case of condominiums, above all, resale of refurbished apartments was registered. The price range per square meter of living space here ranged from 420 to 4700 euros.

The purchase price of refurbished condominiums in the initial sale was between 2700 and 6200 euros per square meter of living space.

Source: www.bild.de                                                   Image: www.pixabay.com

2020-05-15 (2)

Tips for your property inspection

The first impression counts! Think of a well-groomed appearance and a polite manner so the seller can remember you well and you leave a positive impression.

Be truthful about yourself. At the latest when buying, details will be visible anyway.

Poor preparation can be a disadvantage. Find out as much as possible beforehand, because this way a seller or broker can determine your serious interest in the property.

Avoid too many emotions when viewing the property, even if you already like the property a lot. Do not let yourself look directly at the cards and remain factual. In a later purchase price negotiation, you will certainly benefit.

Refrain from making hasty commitments that you cannot keep later. Take enough time to think about your project.

 

Source: www.psd-nord.de                                                       Image: www.pixabay.com

Unterschreiben

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

Immobilienpreise

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

 

Renovieren

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

Mietwohnungen

Real Estate boom continues – but Real Estate prices are rising slightly less rapidly

Real Estate prices in German cities continue to grow – but more slowly than before. Especially the rents are rising with particular lower rate.

Rents in major German metropolises have risen by 2.5 percent.

According to the Bundesbank, the boom on the real estate market continued last year. However, prices rose less sharply – especially in the cities.

Overall, real estate prices in German cities rose by 6.1 percent in 2019 comparing to 8.5 percent in 2018. In the seven metropolises Berlin, Dusseldorf, Frankfurt, Hamburg, Cologne, Munich and Stuttgart was a rise of 6.4 percent (after 9.7 percent in 2018).

Last year, accordingly to the Bundesbank, the real estate prices in those cities topped the level. Statically forecasted price deviations in metropolises were between 15 percent and 30 percent higher than expected.”

source: www.wiwo.de

picture: www.pixabay.com

Rauchmelder

3 facts you need to know about smoke detectors

Smoke detectors must be installed in all living rooms and bedrooms except in the kitchen and bathroom.

The owners or landlords are responsible for the installation of smoke detectors. However the maintenance obligation can be delegated to the tenant by contract. But: the owners or landlords still remain under liability. It has to be ensured that the tenants are physically and mentally capable of servicing the system safely and in accordance with the manufacturer’s specifications. In this case exists a so-called “secondary liability” for a tenant to his landlord for the ongoing monitoring.

The costs for maintenance may also be passed on to the tenants – as long as the landlord assumes the maintenance by himself or has delegated it to a service company. These maintenance costs can only be included in the service charges or additional costs

Source: www.rauchmelder-lebensretter.de

Picture: www.pixabay.com

Flagge Niedersachsen

Rental price brake in Lower Saxony declared invalid

Lower Saxony has to improve and re-adopt the rent brake three years after it comes into force. The Hanover District Court has declared the law to be ineffective. The reason is a simple formal error. According to the Ministry of Construction, the correction will take at least six months.

Farewell and justification must coincide

The formal error was noticed by the district court in Hanover, which had to deal with the lawsuit of a tenancy law agency: The point was that the agency wanted to force the former landlord of a couple to give up the rent of the previous tenants. The court dismissed this action because it considered the law to be ineffective due to a formal error (file number: 514 C 7045/19).

According to the Ministry of Construction, six other federal states have to improve the rental price brake, among other things because the reason for the regulation was published too late. For example, due to formal errors, courts in Hamburg and Munich, as well as in Stuttgart, declared the rental price brakes invalid and asked the state governments to correct the errors.

Rental price brake: Lower Saxony is checking where it will still apply in the future

Lower Saxony must now re-evaluate in which regions it wants to apply the rent brake, said the ministry spokesman. Many cities and municipalities such as Braunschweig, Hannover, Osnabrück und Wolfsburg are affected. Existing tenancies were also affected by the Lower Saxony Tenant Protection Ordinance: In the 19 cities and municipalities, the cap for rent increases was reduced from 20 to 15 percent within three years. Finally, the lock-up period for these cities and municipalities after the conversion of a rented apartment into a condominium was extended: a buyer should wait five years before he could have terminated the tenancy due to his own use or due to an obstacle to an appropriate economic exploitation of the property. The regular blocking period is three years.

source:www.haufe.de

picture: www.pixabay.com

key-3348307_960_720

Real estate ownership plays a vital role in wealth

The Germans are getting richer. According to a study, property ownership in particular increases wealth considerably. According to a study by the German Institute for Economic Research, the population aged 17 and over had almost 103,000 euros in 2017. This means that individual assets have climbed an average of 22 percent since 2012.

Unequal distribution

The strikingly unequal distribution of wealth was striking. The richest ten percent account for more than half of total wealth (56 percent), while the poorer half of the population (over 17 years) owns just 1.3 percent of total wealth. In addition, 18 percent of total net assets are held by the top one percent. That’s the bottom 75 percent together.

Real estate ownership is crucial

In addition to business assets, real estate in particular saw above-average growth. In the period 2012 to 2017, owner-occupied property increased in value by 30,500 euros, while other property ownership increased in value by almost 27,700 euros. These real estate value increases had a very positive impact on the owners’ net assets. It so happens that owners of owner-occupied property now have an average of around 225,000 euros, ten times as high as people who live for rent with only 24,000 euros. It is noticeable that the amount of net assets grows significantly faster over the course of age among property owners than among tenants. Thus, the individual net assets with a value of almost 280,000 euros among owners reach their peak between the ages of 71 and 75. For tenants, the average value of 55,000 euros is already reached between the ages of 51 and 55. This difference is mainly explained by the fact that property owners build up assets over a long period of time while repaying their mortgage, while tenants do not have to do so and a significant proportion of their income is used for rent.

Source: www.anlegen-in-immobilien.de

Image: pixabay.com