Berlin to freeze rents for five years

Discussion in 'Property Market Economics' started by Piston_Broke, 8th Jul, 2019.

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  1. Piston_Broke

    Piston_Broke Well-Known Member

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    Berlin to freeze rents for five years | DW | 18.06.2019

    Yep the Germans have voted to STOP rent increases for 5 yrs because rents are too expensive.

    Key points include:
    • Rents across Berlin cannot be raised for the next five years; non-price-controlled apartments and welfare housing are exempted from the rule.
    • Maximum rent levels will be fixed citywide and renters will have legal recourse if their rent exceeds that cap.
    • Rent caps are to be implemented on January 1, 2020 and will apply retroactively from June 18 onward.
    • The rent cap does not apply to new construction.
    • Although there are exceptions in the case of renovations, landlords will be required to seek city approval for larger improvements.
    • Property owners who ignore rules regarding renovation could face fines of up to €500,000 ($560,000).
    "Suck on that":eek:

    Will our govm end up the same way?



    And more from the nice city of Berlin..

    Protesters rally against 'rental insanity' in large German cities | DW | 06.04.2019
    "housing activists demanded the government hit back by expropriating real estate from big rental companies."

    "Christian Pestalozza, a constitutional and public law professor at Berlin's Free University, believes the situation invokes Article 15 of the German constitution, or Basic Law, which provides for the "socialization" of "land, natural resources and means of production" by transferring it to public ownership."

    "Many say this is a type of class struggle. Yes, that's what it is. But we did not start it. We are taking defensive measures against the class struggler from the top who has for years been fighting against tenants,"


    "It's unacceptable for housing to become a commodity that is sold off, where the only concern is profit,"

    "Having a place to live is a human right."
     
    Last edited: 8th Jul, 2019
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  2. Angel

    Angel Well-Known Member Premium Member

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    Quote from article: "A surge in prices has led some residents to call for property to be seized from landlords possessing 3,000 apartments or more. Those behind the initiative have already gathered more than 77,000 signatures in hopes of getting a referendum on the issue."

    I dont think too many landlords in Australia own 3000 or more apartments.
     
  3. Air_Bender

    Air_Bender Well-Known Member

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  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Not too sure how many the Ralan Group have either but they too are a large Sydney based build-to-rent outfit but havent' been around as long as Harry.

    The big difference is that there are very few rent controlled properties still in existence in Sydney - there was a NSW Act for rent control just after WWII which affected the inner-city however there may only be a handful of properties which still have rent protected tenants in place (these tenants would be 74+ if they were born at the end of the war and never moved from 'their' rented premises. They would be living in squalor as there is no incentive to keep the property well maintained or undertake renovations or have an inside dunny or hot water.

    Legislation would be unpopular to say the least (and not under the watch of a Liberal government).
     
  5. Casteller

    Casteller Well-Known Member

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    Controls on eviction and how much rent can be increased are quite common throughout Europe. My rent in Switzerland only went up once in 10 years and had to be justified in writing (heating oil price increase). Eviction of a paying tenant generally not allowed unless property needed by owners family. By comparison tenants in Australia have a pretty raw deal.
     
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  6. Waterboy

    Waterboy Well-Known Member

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    Berlin is a city of long-term renters who have vastly greater rights than what we have in Oz.

    Property ownership is nobody's "German Dream".
     
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  7. SMTY

    SMTY Active Member

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    Sounds more like an ownership nightmare
     
  8. Waterboy

    Waterboy Well-Known Member

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    they don't have a Property Ponzi mindset, which is great cause instead of paying expensive rent or mortgage they can spend the money on other things.

    we waste a lot of money in Australia because of our Property Ponzi Scheme. we spend too much on rent or mortgage which are inflated by world standards, instead of nice things in life.
     
  9. essendonfan

    essendonfan Active Member

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    Ever lived in NYC? We pay $3.9k USD for a one bedroom property
     
  10. Dean Collins

    Dean Collins Well-Known Member

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    @essendonfan
    I live in NY (Brooklyn Heights currently but have lived on UES 72nd and Harlem 120th).

    I actually find Sydney more expensive on the whole than New York.

    Yes there are more crazy $25m+ properties........ but there are also more people who work on Wall Street and make $10m+ a year.

    If you head south west from us in Brooklyn, say Prospect Park, Park Slope or Fort Green etc there are some totally reasonable properties for purchase or rent.

    The only real problem here is everyone wants to live in the same 20sq blocks and no one will subway more than 30 mins from their office.....but if you venture outside of this its cheaper than Sydney eg 1 hour from the cbd etc
     
  11. scientist

    scientist Well-Known Member

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    Stuff like this reminds me that property is unique as an investment class due to the persistent high political risk attached to it. Just recently we narrowly and unexpectedly dodged a Labor win. What does future hold in a few years? The have nots just want to take and take. I have several properties but I don't think I'll be adding to the portfolio any more long term, will just stick to equities.
     
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  12. Jezzah

    Jezzah Well-Known Member

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    And instead of funding innovative new Australian businesses. We are a risk averse nation when it comes to start-ups. Oh you aren't in some way attached to mining, agriculture, the government or real estate? Better go overseas.
     
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  13. Marg4000

    Marg4000 Well-Known Member

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    The European rental scenario is vastly different to Australia.
    What happens there really has no relevance to our market.
    Marg
     
  14. Waterboy

    Waterboy Well-Known Member

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    I'm of the *if you can'be beat them, join them* mindset. :cool:
     
    Last edited: 9th Jul, 2019
  15. Waterboy

    Waterboy Well-Known Member

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    No one's forcing you to live in a dirty city. ;)
     
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  16. New Town

    New Town Well-Known Member

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    They call it the Venezuelan diet. Have you seen how skinny they are? They look great. Thank the Socialists for that
     
  17. essendonfan

    essendonfan Active Member

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    Yeah I am UES in the 90's. But if you are not on the island, you're not really living in NY.

    If you are going to live in NYC for a couple of years, no way people should move to Brooklyn, Jersey etc to save some $$. You have to live on the island to experience the city.

    Moving to Sydney, so will have a better idea of the cost of living. But things like health care and education are way more expensive in NYC
     
  18. Dean Collins

    Dean Collins Well-Known Member

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    @Essondonfan I bet you i can get to most restaurant/locations you visit faster from Brooklyn Heights than you can.....from UES 90's :p

    Dont get me wrong we loved 72nd St when we first got to NYC, living on the 30th floor with floor to ceiling skyline views but the commute downtown when we went out/to the office each day sucks.

    I have 7 subway lines within a 4 block walking distance here in Brooklyn Heights.......

    Anyone who says all the action is only in Manhattan hasnt sampled everything NY has to offer eg I suggest you try some of the restaurants in Boreum Hill area before you isolate yourself to living on 2nd ave 90's.

    This said.....education is expensive here.....no way i would even consider raising kids in NY.
     
  19. Illusivedreams

    Illusivedreams Well-Known Member

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    Over 1,000,000 migrants with so many on welfare im surprised the country is still functioning.

    Than the population is complaining . Did you think where you would house the influx of migrants? Did Germans think how they will afford to support the influx?

    Not sure


    but i hate communist style policies. I came from a communist country and their is nothing worse.
     
  20. Illusivedreams

    Illusivedreams Well-Known Member

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    Thats sad albeit some truth .

    Plenty i know have start ups here. Plenty of Aussie companies doing really well.

    Here is 100 top start ups just 100 but maybe it will make you realize you are focused on property and dont realize that thousands of entrepreneurs are not


    100 Australian Startups to Watch in 2018

    Here is the link.


    I can also tell you our own business start up has 0 to do with property .
    In-fact many successful property investors first become successful business people THAN became successful property investors.