Friday, September 8, 2023

why German do not buy houses? is it true Germany is called nation of renters?

 Yes, it is true that Germany is called the nation of renters. More than half of the population in Germany lives in rented accommodation

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 Germans have a historical preference for renting over buying, which dates back to the post-World War II era when the government built high-quality social housing to meet the need for housing
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 This, coupled with a lack of subsidies for homeowners, rent stability, and consistently high house prices, has contributed to the Germans' love of renting
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Additionally, the German government has chosen to focus subsidies on renters rather than owner-occupiers
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 Mortgages are usually only issued to people who can afford to pay 40-50% of the property price upfront, as well as the agent/notary fees and taxes
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 Germany also has high transfer taxes on buying real estate, no mortgage interest tax deductions for owner-occupiers, and a social housing sector that provides affordable rental housing
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