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Rental price brake in Lower Saxony declared invalid

Lower Saxony has to improve and re-adopt the rent brake three years after it comes into force. The Hanover District Court has declared the law to be ineffective. The reason is a simple formal error. According to the Ministry of Construction, the correction will take at least six months.

Farewell and justification must coincide

The formal error was noticed by the district court in Hanover, which had to deal with the lawsuit of a tenancy law agency: The point was that the agency wanted to force the former landlord of a couple to give up the rent of the previous tenants. The court dismissed this action because it considered the law to be ineffective due to a formal error (file number: 514 C 7045/19).

According to the Ministry of Construction, six other federal states have to improve the rental price brake, among other things because the reason for the regulation was published too late. For example, due to formal errors, courts in Hamburg and Munich, as well as in Stuttgart, declared the rental price brakes invalid and asked the state governments to correct the errors.

Rental price brake: Lower Saxony is checking where it will still apply in the future

Lower Saxony must now re-evaluate in which regions it wants to apply the rent brake, said the ministry spokesman. Many cities and municipalities such as Braunschweig, Hannover, Osnabrück und Wolfsburg are affected. Existing tenancies were also affected by the Lower Saxony Tenant Protection Ordinance: In the 19 cities and municipalities, the cap for rent increases was reduced from 20 to 15 percent within three years. Finally, the lock-up period for these cities and municipalities after the conversion of a rented apartment into a condominium was extended: a buyer should wait five years before he could have terminated the tenancy due to his own use or due to an obstacle to an appropriate economic exploitation of the property. The regular blocking period is three years.

source:www.haufe.de

picture: www.pixabay.com

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Real estate ownership plays a vital role in wealth

The Germans are getting richer. According to a study, property ownership in particular increases wealth considerably. According to a study by the German Institute for Economic Research, the population aged 17 and over had almost 103,000 euros in 2017. This means that individual assets have climbed an average of 22 percent since 2012.

Unequal distribution

The strikingly unequal distribution of wealth was striking. The richest ten percent account for more than half of total wealth (56 percent), while the poorer half of the population (over 17 years) owns just 1.3 percent of total wealth. In addition, 18 percent of total net assets are held by the top one percent. That’s the bottom 75 percent together.

Real estate ownership is crucial

In addition to business assets, real estate in particular saw above-average growth. In the period 2012 to 2017, owner-occupied property increased in value by 30,500 euros, while other property ownership increased in value by almost 27,700 euros. These real estate value increases had a very positive impact on the owners’ net assets. It so happens that owners of owner-occupied property now have an average of around 225,000 euros, ten times as high as people who live for rent with only 24,000 euros. It is noticeable that the amount of net assets grows significantly faster over the course of age among property owners than among tenants. Thus, the individual net assets with a value of almost 280,000 euros among owners reach their peak between the ages of 71 and 75. For tenants, the average value of 55,000 euros is already reached between the ages of 51 and 55. This difference is mainly explained by the fact that property owners build up assets over a long period of time while repaying their mortgage, while tenants do not have to do so and a significant proportion of their income is used for rent.

Source: www.anlegen-in-immobilien.de

Image: pixabay.com