Wednesday, June 1, 2022

Marc Bernhard, May 20, 2022, Home Ownership

German Bundestag, Plenarprotokoll 20/38, pp. 3750-3751.

Frau President. Ladies and gentlemen.

The rents are quite high and the trust in the government quite low. A half year of the Ampel government has sufficed to basically destroy many people’s dream of home ownership [eigenen vier Wällen]. In January you of the government, without any forewarning, simply stopped the KfW promotion a week before the official end and thereby stole home ownership from many thousands of families, people who already paid many tens of thousands of euros for architectural plans, energy advisors, purchase of a site, building permits, real estate transfer taxes, notary services, etc., and relied on your promotion promises. 

Many of these people now stand there with many thousands of euros in debts on account of this government, without hope of being able to afford their home, and those of them who could afford to alter the building plan and energy planning for many thousands of additional euros so that they correspond to your new promotion program are now finally on ruined ground – in that you have stopped your new promotion promises after just three hours without any forewarning. You have thus ruined within the briefest time the dream of home ownership for many people.

Now it happens that you of the Union, who in the previous government co-produced this entire disaster, allegedly want to enable the dream of home ownership. It is nice that for this you have apparently read the AfD motion from the year 2018 and copied out much of what is right. What you then rejected as a government, you now thus apparently want to implement yourselves.  

Yet your hypocrisy goes even further. Since naturally it is right that the real estate transfer tax, as demanded by us for years, needs to be lowered, quite especially for young families; it was nevertheless exactly you of the Union who have ever further driven the real estate transfer tax to the heights. Thus the Union-led government under Helmut Kohl already in 1997 raised the real estate transfer tax from 2.0 percent to 3.5 percent. It was the Union-led government under Angela Merkel which enabled the Federal States to independently further increase the real estate tax, and the increases have naturally arrived by return mail.

Especially embarrassing – I need also say – for your motion is in fact however that the CDU-governed States of Nordrhein-Westfalen and Schleswig-Holstein today have the highest real estate transfer tax in Germany, namely 6.5 percent.

If you thus really wanted to relieve the people, then you would have had 16 years time for that – for 16 years, nothing was done. In the States governed by you, you could still immediately act and reduce the real estate transfer tax to 3.5 percent, In that you have not done that is seen that your motion acts as nothing other than a cheap show window motion without any substance.

The German Bundesbank states that the greatest hindrance for home ownership is the high real estate transfer taxes in Germany. The high level of these is the direct consequence of the Union’s policy in the last years. The CDU is thus the greatest hindrance for the dream of home ownership in Germany.

This is also quite clearly and distinctly seen in regards the housing construction costs. In 16 Merkel years, the costs of housing construction have just exploded as a result of countless, complicated construction rules and energy guidelines. Expensive heating installations, extreme protective glazing, dubious insulation regulations have let loose a regulatory insulation madness. Over 500 billion euros of polystyrene was stuck to German houses without that, as stated by the German Economic Institute, having had any use. If the Union in its motion now wants to ostensibly reduce their own introduced cost-driving requirements, then that is nothing but a barefaced mockery.

The fact is that a newly built square meter of housing space in Germany today costs on the average 3,400 euros, the entirety of that leads to a net rent [Kaltmiete] of 13.50 euros at a minimum. And that can plainly 80 percent of the people in our country not afford.

Germany thus not without reason brings up the rear in Europe in regards to the housing ownership quota. The German Bundesbank clearly states that the housing policy of the government is responsible for that our housing ownership quota is the lowest in all of Europe, namely just 45 percent, while the European average is clearly over 70 percent.

We want to make Germany, from a country of renters, into a country of owners, and we therefore demand:

First. All cost-driving construction rules need to be reduced to a bearable standard and cost drivers eliminated.

Second. The abolition of the real property tax. This would be an immediate relief for each household in our country of from 400 to 500 euros per year.

Third. A general reduction of the real estate sales tax to 3.5 percent.

Fourth. A complete riddance of the real estate transfer tax for the first home for one’s own use.

            Stephan Brandner (AfD): A very good idea!

Dear colleagues of the CDU, it simply makes much more sense to vote for the same motions of the AfD, instead of first rejecting them and then re-introducing them as a plagiarism.

Many thanks.

 

[trans: tem]