Ban on converting rental apartments into condominiums axed!
It has been the subject of long and heated dispute within the CDU/CSU factions of Angela Merkel’s government in the Bundestag. Federal Minister of the Interior, Horst Seehofer, wanted to anchor a ban on converting rental housing units into condominiums as part of his Building Land Mobilization Act. The Berlin CDU member of parliament Jan-Marco Luczak and the real estate industry, among others, registered strong objections to Seehofer’s plans.
But the latest draft of the Building Land Mobilization Act has now been published without the conversion ban, which would have allowed municipalities to effectively block the conversion of existing rental units into condominiums in regions with tense housing markets. Given the political slant of the Berlin Senate, it is very likely that the city would have seen a very restrictive interpretation of these restrictions.
In fighting the conversion ban, the Union’s experts, led by Jan-Marco Luczak, argued that it would make it more difficult for Germans to buy their own homes and thus counteract other instruments, such as the help to buy scheme for families with children, which are designed to increase the home ownership rate in Germany. Rather than the restrictions proposed by Seehofer, Luczak and his comrades-in-arms want to make it easier for German households to own property and are also open to new instruments, such as the much-discussed discount on land transfer tax for first-time buyers.
In view of the upcoming federal elections next year, however, this positive news should probably be viewed as a temporary respite, as it is highly likely that the Greens, SPD and Die Linke will revisit the topic.
Our experts therefore advise all owners to keep a constant eye on the benefits of converting rented apartments into condominiums. Our experienced team will be happy to assist you with dividing your property into condominiums and looks forward to hearing from you.
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