Hello everyone,
A quick question for you: What do you think about the new standards for new construction and what they might mean for all of us? It seems that the requirements for new buildings are increasing significantly. Policymakers are placing more emphasis on energy efficiency and sustainability, which of course also has an impact on construction costs. This could have considerable consequences for many of us who are thinking about building a new house or purchasing a property. On one hand, it’s good that we are building in a more environmentally friendly and sustainable way, but on the other hand, this might also push property prices even higher. What are your thoughts on this? How do you think these new standards will affect the real estate market, and should we as future homeowners or buyers pay attention to anything in particular?
Looking forward to your opinions! 😉
A quick question for you: What do you think about the new standards for new construction and what they might mean for all of us? It seems that the requirements for new buildings are increasing significantly. Policymakers are placing more emphasis on energy efficiency and sustainability, which of course also has an impact on construction costs. This could have considerable consequences for many of us who are thinking about building a new house or purchasing a property. On one hand, it’s good that we are building in a more environmentally friendly and sustainable way, but on the other hand, this might also push property prices even higher. What are your thoughts on this? How do you think these new standards will affect the real estate market, and should we as future homeowners or buyers pay attention to anything in particular?
Looking forward to your opinions! 😉
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nordanney24 Jul 2024 08:17Addendum: The guide for building type E has been published, and the measures can be implemented by the construction industry (mainly multi-story residential buildings).
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Buchsbaum06624 Jul 2024 09:42There will be no decrease in construction costs. If anything, the opposite will happen.
By now, we can talk about a housing shortage. Rents are skyrocketing and becoming unaffordable. Millions of homes are missing, and we are very, very far from the government’s goal of building 400,000 new homes annually.
And this has been the case for many years. The situation is worsening. Have we seen any reduction in bureaucracy or removal of building regulations? No. Are there special programs like increased depreciation or tax relief, for example, for rental housing construction? No! Have we heard anything about legal easing in building law, such as rules allowing for more plots to build on, including in rural areas? No!
Just talk, talk, talk, and nothing happens. No one should be surprised.
And now, many professionals from the middle class are wondering why they can no longer afford or even want to buy a house, even with two good incomes.
My rental property could easily be extended by 3 to 4 housing units. Great apartments that I could even rent out affordably, within social standards.
But what would I gain from it? Perhaps 500,000 euros (about 550,000 dollars) in new debt that I would have to pay off over 20 years, now that the property is fully paid.
Do I get tax advantages or subsidies? Nothing. The risk and investment costs remain mine.
As a landlord, I face several problems. If sooner or later pensions and health insurance contributions are imposed on my rental income, if the tax burden increases, or if more pointless measures and regulations are introduced.
My investment will also increase the property’s value, which is obvious. I’m in my mid-50s, and when I die, the inheritance tax will come into play. So, I simply won’t do it. It just doesn’t make any sense.
By now, we can talk about a housing shortage. Rents are skyrocketing and becoming unaffordable. Millions of homes are missing, and we are very, very far from the government’s goal of building 400,000 new homes annually.
And this has been the case for many years. The situation is worsening. Have we seen any reduction in bureaucracy or removal of building regulations? No. Are there special programs like increased depreciation or tax relief, for example, for rental housing construction? No! Have we heard anything about legal easing in building law, such as rules allowing for more plots to build on, including in rural areas? No!
Just talk, talk, talk, and nothing happens. No one should be surprised.
And now, many professionals from the middle class are wondering why they can no longer afford or even want to buy a house, even with two good incomes.
My rental property could easily be extended by 3 to 4 housing units. Great apartments that I could even rent out affordably, within social standards.
But what would I gain from it? Perhaps 500,000 euros (about 550,000 dollars) in new debt that I would have to pay off over 20 years, now that the property is fully paid.
Do I get tax advantages or subsidies? Nothing. The risk and investment costs remain mine.
As a landlord, I face several problems. If sooner or later pensions and health insurance contributions are imposed on my rental income, if the tax burden increases, or if more pointless measures and regulations are introduced.
My investment will also increase the property’s value, which is obvious. I’m in my mid-50s, and when I die, the inheritance tax will come into play. So, I simply won’t do it. It just doesn’t make any sense.
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nordanney24 Jul 2024 10:01Buchsbaum066 schrieb:
Construction costs will not decrease. If anything, they will rise. Why? Please provide your reasons.
Buchsbaum066 schrieb:
By now, we can speak of a housing shortage. Rents are skyrocketing and becoming unaffordable.
Millions of housing units are missing, and we are very, very far from the government’s goal of building 400,000 new homes annually. Currently, about 1.9 million housing units in various types of buildings are vacant (Census + Empirica). Overall, there is no absolute housing shortage. Of those vacant units, about one third were ready for occupancy within the next three months.
But the homes are not located where many people want to live. That is the much bigger problem.
Buchsbaum066 schrieb:
And now many professional groups belonging to the middle class wonder why they can no longer afford—or do not want to afford—a house even with two good incomes. No, people wonder why they can no longer get the necessary 180sqm (1,940 sq ft) with excellent features. You can afford a house, but expectations are still extremely high.
Buchsbaum066 schrieb:
But what do I get from it? Maybe 500,000 euros new debt that I have to pay off over 20 years, even though I have already paid off the house. Do I get tax benefits or subsidies? Nothing. Yes, there are special depreciation options—you do have tax advantages. Subsidies are available in many forms, from KfW to the funding banks of the federal states.
For social housing, financing is practically interest-free for up to 30 years.
Summary of your post: Complaints but no single concrete or factually correct statement.
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hauskauf198727 Jul 2024 08:11How are construction costs supposed to decrease when wages are rising sharply at the same time?
cartman00 schrieb:
What do you think about the new standards for new construction and what that means for uI don’t think that statement fits with today’s times at all. “Energy-efficient houses” already existed before 2000, and the Energy Saving Ordinance has been in place since 2002. It has been tightened several times since then. So there has been plenty of opportunity to engage with the topic, and I find the question a bit overdue. Welcome to real life.
The Energy Saving Ordinance is not to blame for the high prices.
In 2017/2018, we built a passive house at average prices for that time. The companies have adapted to the requirements and are able to meet them. Nothing about it is exotic or unusual anymore.
If you have read in recent years what is considered standard and why a normal house is so expensive, you can only shake your head. Walk-in closets, children's bathrooms, galleries, better to have too many square meters than too few. No rain showers—social housing. Fingerprint scanners, KNX home automation, new matching furnishings, naturally move-in ready. By then, the landscaping contractor has to get involved.
Why don’t more people build simple houses with their own labor? It might not fit the current lifestyle, but it suits the budget.
If you look at some of the large houses from the 1960s to 1980s, they were designed for children and grandchildren to live in as well. They were built not only for oneself but also for future generations.
Apartment buildings are a different matter.
In 2017/2018, we built a passive house at average prices for that time. The companies have adapted to the requirements and are able to meet them. Nothing about it is exotic or unusual anymore.
If you have read in recent years what is considered standard and why a normal house is so expensive, you can only shake your head. Walk-in closets, children's bathrooms, galleries, better to have too many square meters than too few. No rain showers—social housing. Fingerprint scanners, KNX home automation, new matching furnishings, naturally move-in ready. By then, the landscaping contractor has to get involved.
Why don’t more people build simple houses with their own labor? It might not fit the current lifestyle, but it suits the budget.
If you look at some of the large houses from the 1960s to 1980s, they were designed for children and grandchildren to live in as well. They were built not only for oneself but also for future generations.
Apartment buildings are a different matter.
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