Exacerbate Housing Shortages

Home best protection against rising rents and first-class retirement plans with the planned price brake to prevent the grand coalition that the housing and life in the large German cities is now nearly priceless. But if the political aim of limiting the extent and pace of future increases, can be achieved, seems questionable. In particular, families with average incomes can protect against further dramatic increases only with the acquisition of residential property, says Jurgen Dawo, founder of town & country house, Germany Massivhaus leader, in an interview. The legislature wants to limit the amount of rent at first and new rental. Comparable to apply to Mietanhebungen when current leases. Are families with average incomes can afford in the future neither the living and life in major cities? Jurgen Dawo: At least the political will is there to prevent the seemingly relentless rise in rents in major German cities.

Whether by the Grand Coalition adopted rent brake is the suitable instrument, must still turn out. Some housing experts doubt it anyway. The experience teaches that Government interventions of this kind almost always miss or as in tax law open up new design possibilities, contrary to run the political intent. Reach even the opposite of what is intended. Because the coalition agreement contains naturally only the fundamental cornerstones, we will have to wait what looks in a few months the legal implementation. They said just that government intervention often do the opposite of what is intended. What do you mean with regard to the planned rent brake? Jurgen Dawo: I’m afraid with this opinion I am by the way not only that the rent brake is a brake on investment. This particularly affordable housing in the big cities would increase still scarce, therefore the rents further tangible. At the same time, looking at that cheaper housing is dedicated to and no longer bezahbar for normal income earners increasingly becoming comparatively expensive condominiums.