THAT’S RIGHT, IT’S GERMANYYYY!!!!!
Home ownership in Germany remains quite low since Germany’s surrender in May 1945 during World War II. With over 2.25 million homes demolished and another more than 2 million damaged, Germany was facing a housing crisis along with their currency being almost worthless.
The Government pushed through with their first housing laws in 1949 which ultimately established ‘West Germany’ allowing for the construction of houses to increase in order to fit the ‘broad population’. This housing plan was a….. SUCCESS! Through the combination of generous tax exemptions and direct subsidies that were available to the public, non-profit as well as private entities, the housing shortage was halved by 1956.
“Germans kept renting because, in Germany, rental housing is kind of nice.”
With not a lot of potential buyers with disposable income, many Germans resorted to renting properties instead of buying them. The three main reasons many Germans choose to rent is because:
1. The Rent is CHEAP – over the past 10 years, UK rental property has nearly doubled, whereas Germany’s rent has only risen 2% – 3%
2. The Rental Regulations are “Renter-Friendly”
- German laws allow State Governments to cap any rental increases at no more than 15% over a three-year period.
- Landlords are not allowed to charge more than 10 percent of the average rent for comparable housing the area.
3. There’s No Incentive to Buy Houses
- The Government simply just doesn’t encourage buying homes.
- Germany doesn’t have policies implemented where homeowners are able to deduct mortgage-interest payments from their taxes – so WHY BUY?
Maybe we should all just move to Germany to enjoy the attractive renting culture! Let us know your thoughts down below!
-Roof Us First
All of the above information was sourced from: Most Germs don’t buy their homes, they rent. Here’s why