
Crypto Investment Entry and Exit Strategies of Institutional Investors
Section: Business
The German government has introduced a bill to extend the rent control measures in an effort to provide urgent protection for tenants facing soaring rental prices. Federal Minister of Justice has emphasized the need for swift action, stating that housing should not be treated as a luxury commodity.
However, the proposal has faced immediate criticism from various stakeholders. The President of the German Real Estate Association warned that such regulations may deter builders and investors, who are crucial for revitalizing the housing market. He expressed concerns that extending the rent control measures might halt construction activities, leading to further housing shortages.
On the other hand, the German Tenants' Association contends that the proposed changes do not go far enough. The association's president expressed disappointment over the government's failure to eliminate existing exemptions that allow landlords to bypass the rent control regulations, particularly through short-term rentals and furnished apartments that yield high profits at tenants' expense.
The rent control policy stipulates that rents for new leases cannot exceed ten percent above the local average rental price. However, several limitations exist, including exemptions for newly constructed properties and extensively renovated apartments that are rented for the first time after major renovations. Additionally, landlords can circumvent the regulations by offering furnished properties or short-term rentals.
Minister of Justice has indicated that this extension is merely a first step, with plans for further enhancements aimed at tenant protections outlined in the coalition agreement. Proposed measures include increased transparency regarding ancillary costs, stricter regulations for index-linked leases, and improved tenant protections for furnished rentals. The Minister stressed that it should not be permissible for landlords to charge exorbitant prices simply by adding minimal furnishings to a vacant apartment.
Germany has one of the highest proportions of renters within the European Union, with approximately 53 percent of the population renting their homes. In recent years, rents in many major cities have surged dramatically, underscoring the importance of rental laws in the country.
According to the new legislation, the rise in rental prices is primarily attributed to the insufficient supply of housing. While the government acknowledges that addressing the scarcity in tight rental markets requires the creation of additional housing, it recognizes that measures to increase supply, such as promoting social housing and supporting private construction, will not have immediate effects. Therefore, extending the rent control measures is deemed a necessary interim solution to mitigate the escalating rental prices.
Members of the CDU party have expressed significant reservations regarding additional market regulations, asserting that rent control should be viewed as a temporary measure until the housing market stabilizes. They caution that repeated extensions of the rent control policy could exceed the limits set by the Federal Constitutional Court and are against extending the deadline for newly built properties as proposed by tenant advocates.
The Green Party has also voiced strong dissatisfaction with the government's approach, describing the submitted legislation as inadequate. They argue that the 26 million tenants in strained housing markets require genuine protection, which can only be achieved through an indefinite rent control policy and limits on rent increases for existing contracts.
Section: Business
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Section: Health
Section: Arts
Section: News
Section: News
Health Insurance in Germany is compulsory and sometimes complicated, not to mention expensive. As an expat, you are required to navigate this landscape within weeks of arriving, so check our FAQ on PKV. For our guide on resources and access to agents who can give you a competitive quote, try our PKV Cost comparison tool.
Germany is famous for its medical expertise and extensive number of hospitals and clinics. See this comprehensive directory of hospitals and clinics across the country, complete with links to their websites, addresses, contact info, and specializations/services.
Join us for the 10th Summer Concert at the Heilig Geist Church, featuring the captivating sounds of two trumpets accompanied by a majestic organ. This concert will showcase works by renowned composers including J.S. Bach, A. Torelli, P. Franceschini, H. Purcell, and others.
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