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Berlin rent cap overturned by Germany's top court

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Re: Berlin rent cap overturned by Germany's top court

#81
post #6

Well that's very disappointing.

I am happy about it, since I live in Prague (capital of one of their neighbors) and the local green/left was kinda waiting for this to go through.

Why? So that investment or people will move eastwards?

What about the thriving culture which exists in Berlin, and which is supported by low rent prices.

Re: Berlin rent cap overturned by Germany's top court

#83
post #8

Full text of the court decision (German): https://www.bundesverfassungsgericht.de/SharedDocs/Entscheid... Shorter press release (German, too): https://www.bundesverfassungsgericht.de/SharedDocs/Pressemit... It's a classical application of the "federal law breaks state law" rule, which I think exists in the united states as well.

I thought it was more "Federal law has already decided this and the state can't be more restrictive than the Federal law"

Re: Berlin rent cap overturned by Germany's top court

#84

Earlier quoted context omitted.

Depends where you live, I guess. Gentrification is a problem, so, I agree.

It doesn't matter where you live. The jobs are in Munich, Berlin, Wolfsburg, etc.

And a job in these cities usually pays the rent. Unless, of course, you work blue collar at smaller companies. Or are a long time resident. Then it sucks.

That being said, I'd say the situation sucks especially for older folks not owning their apartments. The generally higher educated post 1980 generation has it comparatively good.

I just take issue with such general blatant statements, things are never that simple.

Re: Berlin rent cap overturned by Germany's top court

#85
post #62
post #11

I wish Berlin would just build more housing instead. For example when I cross the street there is a supermarket. It's a single story building with a huge parking lot around it. Why not make it a multistory building with apartments on top of the supermarket and skip the parking space or put it underground? Why does the city give out building permits for such buildings? There could easily be room for thirty families on…

The amount of unused space is Berlin is just so massive. Even in Friedrichstraße, which is a hype neighborhood with great amount of activity, you have hundreds of square meters completely unused, with wild plants growing around and random waste accumulating. From what I understand it is very difficult to do something with that space, either because people refuse to sell or because of bureaucratic red tape.

Wild plants growing around in a city, the horror!

Re: Berlin rent cap overturned by Germany's top court

#86

Keep in mind that when they say Berlin's rents are soaring, it's still comparatively cheap for large cities in Germany.

That is simply not the case anymore. Neither are the sale prices low anymore. You will now pay same m2 price as in West-est west, like at the border with Switzerland.

Re: Berlin rent cap overturned by Germany's top court

#87
post #25

Earlier quoted context omitted.

The Berlin rent cap is different from rent caps elsewhere, say SF. The Berlin rent cap includes new contracts, too.

Not if you stay months in hotel or Airbnb. And that is only available option.

AirBnB is part of the problem btw. There are at least 4 fulltime AirBnB flats on my building floor (that I'm aware of). I'm assuming it's AirBnB because there's a very high "fluctuation" of new people in those flats (few days to 2 or 3 weeks). Imagine if all those AirBnBs would be available for longterm renting ;)

Re: Berlin rent cap overturned by Germany's top court

#88

Important to note here is that while the Mietendeckel (rent cap) has been overturned, the Mietpreisebremse (rental price control) is still active. This is a very interesting development though.

Correct. Unfortunately, the Mietpreisbremse is not as "automatic", because there is no fine tied to it. This means the landlord will not reduce your rent unless you do something about it. It also brings a lower reduction than the Mietendeckel.

Unfortunately, many rent contracts had a "shadow rent" clause - a higher rent they'd have to pay retroactively if the Mietpreisbremse was repealed. A lot of people are about to get a really big invoice they have to pay within 2 weeks.

Fortunately, the Mietpreisbremse is retroactive back to April 2020, so you can start the process now and get a refund later.

Your action plan should be the following:

1. Use a Mietpreisbremse calculator to check how much you are paying

2. Contact your landlord, either alone or with the help of a tenants' union (Mieterverein)

3. If that fails, use a lawyer, or a service like Wenigermiete. If it get this far, the resolution will generally take around a year. This is the average resolution time.

I have worked directly with Wenigermiete. They explained the situation to me just last week, but they expected the court to resolve the case in July, perhaps even later.

Re: Berlin rent cap overturned by Germany's top court

#89
This is great. I also want affordable housing for everyone, but capping rents does not deal with the core problem: There's not enough supply. I am baffled how some people do not understand this.

Also, for many people in Germany buying e.g. a single apartment is an investment for their later retirement. It's not all big and evil real estate companies.

Re: Berlin rent cap overturned by Germany's top court

#90

Housing situation in Germany for anyone born after 1980 is so fucked.

Yup, same in my country. I was able to buy a home recently, but my method of accumulating capital enough is just about mission impossible for normal peeps. It is really unfair. Government regulation and control of housing prices is the solution.

If it is the solution, why doesn't it work wherever they have tried?
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