If you ask a young fellow to her plans for the future and whether you want to buy one day, perhaps, own property, refuse to make it almost always the same typical hand movement. Most of the under 30-are Years from buying a house or a private apartment about as far away as from their first landing on Mars.
“Totally unaffordable”, and “How can I afford it”, or “I don’t have rich parents”, so or similar the answers are to the question of private property. In fact, younger buyers are struggling currently against three super trends, when it comes to my own place.
first of all, the demographic development. The influx of people into the cities and the housing in the conurbations. Right there but there is for the most Junior staff have the most interesting Jobs. At the same time, it does not provide the authorities and the construction industry, to increase rapidly the offer by means of cheap new buildings.
less and less to residential property in the case of financially weaker households,
Secondly, the interest rates for years low. Many professional buyers, but also private households with lots of equity in the account, the insistence on the real estate market. The capital glut, driving prices further upwards. Young buyers are, however, in the face of temporary contracts and insecure jobs rather badly to the Bank.
And third, have increased the purchase costs, along with rising prices, more and more – especially since many States have increased the real estate transfer tax final.
The result: A group of buyers is practically excluded from the market. Earlier could buy also families with below average income, a house, if they had taken the classic savers career and with the end 20 a safe and secure Job could have. Today is increasingly the exception.
Financial households fail in the financing, the equity capital needed, in addition to costs and, more generally, on the availability of residential property. On at least some of the current market investigations.
For example, a Recently published analysis of the Alliance mortgage lending. “Despite the persistently low level of interest rates is less and less households acquire low-net income residential property”, – stated in it. “While ten years ago the customer-financed with a net household income of up to 1000 Euro nationwide real estate, financed 2017 customers with this income in ten Federal States with no property.”
average income are affected
Although economic increase thanks to the humming, the income of the citizens. However, the Alliance observed an enormous jump in income statistics, the buyer can not explain. Because “every third customer, the financed in the past year, a house or an apartment, had a net household income of more than 4000 Euro in Hamburg, even each second,” says Stefan Kohler, head of the Alliance mortgage lending. The dream of home ownership remains a dream for many.
insurance companies like the Alliance have a relatively low market share in real estate loans, compared with the Sparkassen, Volksbanken and classic hyptheken banks. But other financiers, and market experts observe that the financial weaker households to stay on track.
For example, Ralph Henger, an Economist at the Institute of German economy (IW). “Nationwide, the Problem is the high capital requirements. Therefore, the ownership rate was in the last few years for low-income households actually declined,“ he says. “For families it is a result of rising prices and transaction costs becoming more and more difficult, the required Equity as a savings account. This applies especially to low-income families.“
This clientele would be thrown back by another effect. “You have been burdened in recent years by rising Rents, stronger and were able to put less money back. But also average income are affected, in particular, if one of the parents reduces his work because of the children. Who may have no assets by, for example, the parents, in such cases, more and more foreign.“
How strong the real estate prices have risen, measures of the Alliance mortgage lending on the basis of the average amount of the loan, the request of their customers. All the provinces of the average loan amount from 2007 to 2017 have more than doubled. Surprisingly, there are just kicked in the Alliance last of the younger customers.
Who has not a grandma with a house, it has risen hard
The number of 40-Year-old was compared to 2017 something. But behind the growing interest of the Younger a new danger: Many customers would repay their loans at the beginning, with only three percent or less. “Customers have enough equity or you can opt for a complete funding, it is not a Problem,” says Allianz expert Kohler.
“If not, there is a risk that the follow-up financing is significantly more expensive than the initial financing.” In the case of a fully-financing the interest rates fixed for the entire term, and the loan is fully repaid. A follow-on financing, the interest rates could be considerably higher, is not necessary.
Still, it seems to be for some citizens is not a Problem to buy a property. This is in turn based on data from the credit broker Interhyp, which now holds a significant market share. The prices are on the rise. But at the same time, the equity of Interhyp customers. Somewhere the money must come from so.
For some observers, there is only one coherent explanation: inheritance. The post-war generation leaves behind in the coming years, a trillion in assets in the Form of real estate to their descendants. Usually grandma’s house is sold and the proceeds invested in your own property. The inheritance wave is only now really rolling. Who has, however, not a grandma with a house, it is difficult.
the economist Bert Rürup puts it: “The rapid development of prices for residential property leads to the fact that it is just for young people, it is hardly possible to acquire the residential property. This development continues, it will create a very large part of the under thirty year olds only due to an Inheritance, to be in the proverbial four walls older.“ As President of the Handelsblatt Research Institute, he is co-author of a study on the real estate boom, which will be unveiled in a few days. The younger Generation have, as a consequence, fewer opportunities to acquire residential property.
state as a price driver
Ralph Henger from IW: “The available capital plays a crucial role. Be required by the banks, usually 20 percent equity. Added to this are the incidental costs that are not financed by the Bank, but entirely with private money have to be paid.“
The Economist believes: In Cologne, the average second-hand apartment in the basement cost housing in 2010, around 2000 euros per square meter. Today, there are 3000 Euro. For a 100 square meters apartment, this is increase in a price of 200,000 to 300,000 euros. “The incidental acquisition costs related to this purchase price, and are also in North Rhine-Westphalia in this period from 3.5 to 6.5 per cent.”
Because it is not only the market, but also the state a price driver by a higher land transfer tax. Together with the other incidental expenses for notary, land register entry and brokers the usual acquisition costs increased from 8.5 to 11.5 percent.
“The usual equity required for the purchase of real estate in Cologne increased from 57,000 to 94.500 euros,” says Henger. “This represents an increase of two-thirds or an average of 37,500 euros.” As soon as prices and ancillary costs are rising, you can’t save at all.
buyers through the ordering principle relieve
“The issue has a socio-political Dimension”, Jörg Utecht, Chairman of the Board of Interhyp group. “Finally, it is desirable that normal wage earners have a Chance to own property.” So it would be quite reasonable, “if the policy would do more, so the purchase will be reduced in addition to cost, such as through a reduction in the property transfer tax, or a broker-ordering principle.”
In regard to the second point, after all, the legislator seems to have been a mercy. According to the plans of the Federal Minister of justice Katarina Barley (SPD) to pay for real estate purchases in the future, in General, the seller, the broker’s fee. You will ensure that the ordering principle would be introduced for the sale of real estate, said Barley of the “Rheinische Post”.
“brokerage fees, the cost of housing or buying a house explode,” stressed the Minister. By the ordering principle, the buyers would be relieved noticeably. “Because most of the brokers for the seller, not the buyer.” Brokerage fees are just in areas with a tense housing market out of all proportion to the service provided.
“therefore must apply when buying a property, what is in the rest of the law has long been a General principle: he Who orders, pays the bill,” said Barley. An exact date for the planned changes you mentioned.