Enable private individuals to buy property again

The owners’ association Haus & Grund Germany today welcomed the tax incentives for new residential construction proposed by Federal Building Minister Klara Geywitz. However, this is by no means sufficient to relax the housing markets. “It is essential that the ancillary acquisition costs finally have to go down. Above all, this includes a noticeable reduction in land transfer tax, so that young families can once again afford to own their own home,” emphasized Association President Kai Warnecke. From the point of view of the association, equity-replacing loans are also helpful in lowering the hurdles to buying property, especially for emerging households. Home ownership protects against poverty in old age and secures the old age of millions of citizens. In order not to let the costs of living get out of hand, laws should be subjected to a construction and housing cost check. This should not only be limited to federal regulations, but must include the requirements set by state and local law. Warnecke explained that private individuals in apartment building are by far the most important group of owners and investors. In addition, around 70 percent of these new apartments are rented out. “Here it is important to apply the lever: The costs must be reduced to a level and the financing conditions must be designed in such a way that private individuals can buy property again – be it to rent it out or to use it themselves,” summarized Warnecke.

Source: Haus & Grund