Not a year goes by without the new laws and regulations complicate or sweeten our life. Is it about the real estate transfer tax, which is now at utopian heights, or is it about the so-called eco-electricity generated in abundance to this day, there are new hurdles to overcome but also useful advantages to be taken.
The real estate transfer tax has been adjusted once again!
Since January 1, 2017, buyers in the state of Thuringia now have to pay 6.5% real estate transfer tax instead of 5%. A bitter blow for those interested in real estate who could not decide on a property last year. The real estate transfer tax, which has now increased, will certainly make it more difficult to finance real estate, as the increase does not affect the real estate acquisition price and the equity to be provided must be all the higher.
In the federal states of Brandenburg, North Rhine-Westphalia, Saarland and Schleswig-Holstein, the tax rate has now been 6.5% for a long time. Saxony and Bavaria still have the lower tax rate of 3.5%. In terms of national politics, the two countries should continue to benefit from healthy economic growth due to the low investor-friendly tax rate.
Real estate price bubble - further instruments of the credit brake
With the credit guidelines imposed by the EU in 2016, lending for older borrowers was tightened in some cases. One reason for this was the implementation of the EU guidelines for residential property. Borrowers can expect further changes this year. The Federal Financial Supervisory Authority (BaFin) is to have the opportunity and the right to restrict bank lending to property buyers. That law comes into force until summer 2017. The aim is to wash off upcoming real estate bubbles or to issue warnings of a real estate bubble at an early stage. The Bundesbank is to check and set credit limits in relation to income and minimum repayment amounts.
Home promotion / childcare allowance - does it come or does it not come?
The Federal Building Minister Barbara Hendricks wants to get the home owner’s subsidy out of the blue in order to enable more people to own home. In the case of the new housing subsidy, the subsidy should be declared as family building allowance, which, depending on the number of children, should be supported with up to 20,000 euros. The funding is only available for families with an annual income of up to 70,000 euros and should be limited to areas with limited living space.
On the part of the Union there is an alternative proposal called Baukindergeld, which is to be paid once a year to child benefit, which is also intended to help young families with building their own homes. What is really going to happen, this issue is excellent for the upcoming election campaign. It’s about time that families are finally involved in such important projects again.
Self-generated electricity - now you can sell it to your tenant
You have bought or built a property in which your own electricity is generated. Congratulations, from 2017 you will be able to sell electricity cheaply to your tenants. After the electricity was overproduced for years and we were allowed to pay hard work for it, a meaningful change in the law is finally coming.
The basis for this is the Renewable Energy Sources Act (EEG) 2016, which also applies to apartment owners' associations. If the tenant electricity is produced in the “immediate spatial vicinity” of the rental property, it no longer has to be passed on via the public network. Since 2017, usage fees and concession fees have been omitted for so-called tenant electricity models. Furthermore, the EEG surcharge is largely eliminated. The attractiveness of the rental property is increased by the lower additional costs. Each tenant is free to decide whether he wants to use available tenant electricity or whether he chooses another electricity provider. Federal states such as Hesse, North Rhine-Westphalia and Thuringia also support the local power supply of rental apartments by providing advice and help with meter infrastructure, advice or installation.