Taking a Bite Out of Land Speculation: Stettner's Plan for Berlin
Rising Land Speculation Costs Proposed by Stettner - Increasing Costs for Land Investments Proposed by Stettner
Let's chat about the CDU's ambitious plan to whip up some construction action in good ol' Berlin! Dirk Stettner, the faction leader shouting the calls, wants to stir things up a notch by potentially introducing a new kid on the block, the property tax C.
The hilarious part? Stettner's got his eyes set on combating land speculation, promising to put an end to those pesky plots of land just sitting pretty and doing nothing. "We're talking about popping the speculation bubble, creating living space, and putting those developable plots to good use," he chuckled to the German Press Agency.
Already in effect since January, the nationwide reform in property tax has Berlin immersed in some tax hikes. Specifically, the so-called assessment value for undeveloped plots of land (property tax B) has seen a significant increase. Now, Stettner's got his sights set on a more effective solution: the new property tax C for planning-ready, developable plots of land. If owners decide to sit back and watch the months roll by, it's gonna cost them dearly.
So, what's the plan then, you ask? Well, the examinations must be wrapped up this very year, said the faction leader. "My personal mission is to find a solution this year, get the results of the examination, and then dish the details. We ain't debating whether we want to make speculation more expensive; we're discussing how we do it."
The fascinating part? If the crew concludes that property tax B and a higher assessment value could do the trick just as well, they're all in for that option too. You see, the examination of a property tax C is also tucked in the coalition agreement between CDU and SPD.
Now Onto Hamburg: The Big Kahuna
Eyeing Hamburg, our hero, Stettner, pointed out where a property tax C has already been put in play. Although it's early days yet, the effects are unclear. In Berlin, this step would allegededly impact between 15,000 and 20,000 plots of land, Stettner estimates.
A prerequisite for all this madness? The creation of a cadastre that records all undeveloped, developable plots of land – something that'd need regular updates. Of course, there'd be exceptions, such as formally developable plots of land where construction's simply not an option.
Let's Break it Down: Real Estate Transfer Taxes and Land Speculation in Hamburg and Berlin
To gain a better understanding of the situation, let's dive into the deets about the real estate transfer tax in Germany. While the tax varies depending on the state, the high costs associated with buying property in major cities like Hamburg and Berlin can still serve as a deterrent, potentially reducing speculative activity. For instance, Hamburg charges 5.5%, while Berlin rings in at 6%.
When we compare Hamburg and Berlin's housing policies, the latter's been more aggressive as of late in its efforts to combat speculation, complete with rent caps and stricter regulations on property sales. On the other hand, Hamburg's policies might focus on balancing affordability and investment in the housing sector.
In summary, while there's no specific "property tax C" mentioned, the existing real estate transfer taxes and housing policies in Hamburg and Berlin play a significant role in influencing land speculation. Berlin's higher taxes and stricter regulations likely make it more effective at reducing speculation compared to Hamburg, although Hamburg's lower transfer tax might attract more long-term investors and create somewhat stable market conditions. So stay tuned, folks – the saga continues!
In efforts to combat land speculation, Stettner, the CDU faction leader, proposes a potential new property tax C for planning-ready, developable plots of land in Berlin. This tax could be a means to make speculation more expensive and encourage the use of developable plots for vocational training institutions, as mentioned in a coalition agreement between CDU and SPD.
Simultaneously, Stettner looks towards Hamburg, where a property tax C is already in effect. The implementation of such a tax could impact between 15,000 and 20,000 plots of land in Berlin, potentially benefiting businesses and real-estate investors who focus on vocational training facilities, providing an avenue for investing while contributing to the vocational training sector in EC countries.
