- Thread starter
- #21
Agree.
Berlin becomes first German city to make rent cap a reality
- Thread starter Herr Tubthumper
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Agree.
beorhthelm
A. Virgo, Football Genius
- Jul 21, 2003
- 36,019
One the reasons I like Germany is because it doesn't judge everything on purely economic terms, as you have done here. You'd make an awful German...but I'm guessing you're not the fussed?
thats a nice sentiment (though laughable considering their obsession with economic prudence), but this is an hard economic issue. rents are judged to be rising too fast, an economic problem, so they want to restrict rent rises, an economic solution. no mention of addressing supply, and a little nod to why people want to go to one area rather than another. gentrification, the curse of improving an area, is cited so presumably people are moving into the area and as demand increases so does the prices. clearly the German landlords are judging in economic terms too.
i'm not against the idea of rent caps, just noting the consequences. too often we see that crude tools are used to "fix" economically driven problems without addressing the causes. if as someone mentioned there are exemptions for renovations, new developments etc, it may work out. though then you just create new problems with those inclined making spurious re-decoration a yearly pretext to rent rises. (those not inclined wont raise their rents much of course, they arent the target and not increasing their rents anyway)
Marty___Mcfly
I see your wicked plan - I’m a junglist.
- Sep 14, 2011
- 2,251
Sounds more like a managed increase in rent than a cap- it allows them to steadily increase.
I suppose this avoids Berlin rents rising rapidly, which could keep them below the rental rates of other European cities.
I suppose this avoids Berlin rents rising rapidly, which could keep them below the rental rates of other European cities.
- Aug 8, 2005
- 27,229
Good luck to Berlin. A leading economist claimed that tent caps are one of the best ways to destroy a city, second only to bombing it.
You can't mess with market dynamics like this without causing a problem. The issue of rental properties in this country can only be solved by increasing the supply. Rent controls would have the opposite effect, as landlords would exit the market.
It's been proved time and time again not to work. Typical left wing ideological nonsense with no sound business logic.
You can't mess with market dynamics like this without causing a problem. The issue of rental properties in this country can only be solved by increasing the supply. Rent controls would have the opposite effect, as landlords would exit the market.
It's been proved time and time again not to work. Typical left wing ideological nonsense with no sound business logic.
- Thread starter
- #25
Those Germans, they haven't a clue when it comes to business and economics have they?
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Wrong-Direction
Well-known member
- Mar 10, 2013
- 13,638
One the reasons I like Germany is because it doesn't judge everything on purely economic terms, as you have done here. You'd make an awful German...but I'm guessing you're not the fussed?
Well the good news is you make an excellent German, das ist gut ja?
- Thread starter
- #28
Es ist richtig. Danke
- Thread starter
- #29
Something else to be considered is to not judge German housing from a UK perspective. The Germans have a very very different view of housing, it's value (both economic and other) and it's purpose.
Nibble
New member
- Jan 3, 2007
- 19,238
Rental in Germany is seen a a viable, sustainable, sensible and affordable option, even for life. A lot of people never purchase property there and nobody bats an eyelid.
In the UK however, it is seen as a failing to be renting and renters are fair game for being ripped off, exploited and criticised and the governments attitude is "well you should have worked harder".
In the UK however, it is seen as a failing to be renting and renters are fair game for being ripped off, exploited and criticised and the governments attitude is "well you should have worked harder".
Inflation reveals the reality of conflict in economies.
When OPEC quadrupled oil prices in the 70's non oil producers
struggled to maintain there share other firms and then strongly organised labour
tried to protect their share .But oil producers did well.
It is the same with recent large levels of inflation in the UK (particularly Brighton and London)
there are winners and losers and people like me who own only the house they live in
who it really makes no difference to.
The winners are landowners,property speculators and landlords
The losers are tenants and would be first time buyers.
The fantasy faith of mainstream economics still claim that supply is separate from demand
a 100 years after Einstein mathematically connected matter and energy ,time and space,
faith based economics clings to some kind of supra human price mechanism which optimizes
the development and distribution of resources.
It is all nonsense,illogical with absolutely no evidence to support it.
In the real world if government does not side with tenants and would be first time buyers
( and not with help to buy schemes which help maintain high ratios of house prices to wages)
housing will continue to be a "wealth generator" only for the wealthy.
There are no "free" market solutions for those with less spending power.
We need government to build more housing and improve existing housing, not only are
private rents in Brighton outrageous much of it is damp and inadequate!
Once decent economist once mentioned the need to liquidate the rentier class.
His name was Keynes and he wanted to save capitalism from itself.
When OPEC quadrupled oil prices in the 70's non oil producers
struggled to maintain there share other firms and then strongly organised labour
tried to protect their share .But oil producers did well.
It is the same with recent large levels of inflation in the UK (particularly Brighton and London)
there are winners and losers and people like me who own only the house they live in
who it really makes no difference to.
The winners are landowners,property speculators and landlords
The losers are tenants and would be first time buyers.
The fantasy faith of mainstream economics still claim that supply is separate from demand
a 100 years after Einstein mathematically connected matter and energy ,time and space,
faith based economics clings to some kind of supra human price mechanism which optimizes
the development and distribution of resources.
It is all nonsense,illogical with absolutely no evidence to support it.
In the real world if government does not side with tenants and would be first time buyers
( and not with help to buy schemes which help maintain high ratios of house prices to wages)
housing will continue to be a "wealth generator" only for the wealthy.
There are no "free" market solutions for those with less spending power.
We need government to build more housing and improve existing housing, not only are
private rents in Brighton outrageous much of it is damp and inadequate!
Once decent economist once mentioned the need to liquidate the rentier class.
His name was Keynes and he wanted to save capitalism from itself.
- Thread starter
- #32
As an aside Berlin is also trialling a ban on professional holiday letting of apartments in Pankow.
midnight_rendezvous
Well-known member
New York begs to differ.
- Thread starter
- #34
Maybe not a bad thing?
beorhthelm
A. Virgo, Football Genius
- Jul 21, 2003
- 36,019
i dont beleive they do, they have problems with investment to renovate existing stock, and rent controls only apply to existing tenants that have been there for decades.
- Thread starter
- #36
UK Landlords enjoy £14bn tax breaks as figures reveal buy-to-let expansion
http://www.theguardian.com/politics...breaks-buy-to-let-expansion-mortgage-interest
http://www.theguardian.com/politics...breaks-buy-to-let-expansion-mortgage-interest
cjd
Well-known member
If I am self -employed and I buy a van, the interest is tax deductible, as are loan interest payments on most things.
cjd
Well-known member
All the tax deductable elements in the Guardian article you have quoted are tax deductable in all businesses.
bWize
Well-known member
- Nov 6, 2007
- 1,693
Modern Germany tend to look out for their citizans well, where as ours use every opportunity to bleed as much cash out of us as they possibly can! I'm actualy pretty envious of the Germans and their setup and think they are the most civilized and well run country on the planet at the moment. If it wasn't for strong ties and commitments here I would be off like a flash!