the market economy and the market mechanism are often confused, but they are as different as the river bed and the river.

a market economy is regulated by the frame imaging of the river bed, such as goods and services, and (against money) exchanged are to be offered. Market mechanism, on the other hand is the impetuous force of a river, seeks the path of least resistance through the river bed and to leave it from time to time also changes.

This mechanism describes the human basic instinct, to make the existing resources and under the given conditions is always the Best. You could also call it a spirit of invention, ingenuity, or instinct of self-preservation. These properties help also and especially in difficult times, to cope with crises faster: farms produce disinfectant instead of perfume, unemployed Messe Bauer stomp makeshift hospitals out of the ground. Anyone who wants to benefit from the fruits of this mechanism or its outgrowths regulate, should therefore bear in mind: the bed of The river, you can straighten or narrow, the energy of the flow remains unaffected. Therefore, everyone is well advised to never swim against its flow. The Person

Reiner Braun, member of the management Board of the consulting company empirica. His work focuses on housing markets, income and asset analysis as well as retirement.

The rent cover is trying to skewer

to reverse The doubling of Rents in new Contracts within the last ten years in Berlin was for so many long-Established as well as Newcomers in a disaster. The reverse, a halving of Rents, now could be a disaster for small private landlords, but also for apartment-seekers.

Because now the tables are turned: In Berlin, a rent cover applies since the end of February. In not a few cases at the Ku’damm or in the Prenzlauer berg has to be reduced, therefore, the rent in existing contracts by one-third, and in the case of new contracts, even halved. How could it come to this? Reiner Braun the example of Prenzlauer Berg: In the case of New leases down to the Rent massively.

immigration bureaucracy and increase the cost of newbuildings

Three external migration waves from southern Europe, Eastern Europe and the Levant, an unprecedented level of internal migration in the swarm cities, as well as a long-lasting economic upswing in the demand for housing pushed. At the same time, stringent legal requirements for fire protection, sound protection and energy saving, have building land designation, and additional delayed costs for the construction of social infrastructure, the construction becomes more expensive and thus slows down and Rents are fired.

The rent cover thinks of the outcome, the market economists at the premises

Now the fronts are more than hardened: tenant to expropriation, small landlords are afraid of losing their pensions. They all have a common goal: Adequate housing ‑ not too much and not too little, and so that is also portable for Rent, allow a reasonable rate of interest. However, the ways in which the goal is to be achieved can be hardly more different: The a think from the result and wanted to cap prices, the other thinking of the assumptions and to improve the framework conditions for new construction. But which way leads to success?

The rent cover provides incentives that reduce the size of apartment on offer to …

“If I have to cut in half when a change of tenant, the rent, I sell better to a self-user” calls of private small-scale landlords. That would be bad for low-wage earners, because then there would be a rental for less in the market. The example shows that, Without new construction, the Rent cap is game in purely quantitative terms, a zero-sum. In qualitative terms, but the lid acts in the result of anti-social, because of the low – paid stay at the end of the tenant outside the Prenzlauer berg or Ku’damm apartment of a high – earner, and thanks to her, thanks to cover either half the rent, or as a self-user.

… protected, while existing tenants easier apartments from rent increases …

“But the Freezing (and not Lowering) the Rent is the main part of rent cover” to call the exhausting low-wage earners. Properly, the lid not only reduces the Rents of quality apartments above the cap upper limit, it prevents also rent increases of simple flats below the upper limit. No tenant now has to fear more that new rent index values, or unwanted modernization is increasing the rent more. This is quite levy is right and important, but can reach also by a tightening of existing laws – for example, a lowering of the cap limit or a limit of Modernization. The same uncertainty of results due to appeals to the constitutional court would be without the current law, without reduction for tenants with already good earners Prenzl-and without a factual expropriation of small owners have been possible. Also, the most recently, stricter Rent control had yet to act don’t have to be controlled.

… to Add more difficult, but the apartment search and Moving

What is it in addition to consider the addition of parents and the other apartment-seekers low earners helps the rent cover anything. At Ku’damm you can not come to the city of the edge of the lid lowers the already lower Rents hardly. And by increasing sales to owner-occupiers, the rental housing supply for low-wage earners is also scarce. If year want to live for a year, more people in the city, then only the new building helps in the end. With the FOCUS Online loans comparison (display) Now follow-on funding

new construction: From cover friends calculate reviled, thanks to drainage effect, but part of the solution

The way over to the new building but is reviled by many Enteignungsrufern. They even regard him as antisocial, because a new building rents are so high. That’s right, you can soften by more and thus cheaper land. Also, a loosening of the Construction law would combat the price rise in the new building. And last but not least, there is the “bleeding effect”: The apartment building may refer to a “Richer”, but makes a different apartment in the one of the other feeds, which makes a different apartment for free … and at the end of the moving chain a low-income find affordable rental housing.

The previous Argument, the lid friends ‑ “Yes beautiful, but the vacant apartment is rented more expensive again” – to be left out, because we had reached the top of it to tighten up ceiling such as Rent control and to reduce the modernization levy. And Also, an accompanying, and “bad-ass” as well as believe would be a worthy new strategy of increasing the range so that increases in existing contracts or new leases are not so easy to enforce. In the 2000s, the tenant could threaten then, just with extract. Which is hardly a tenant knows… Our PDF guide to inform you about your rights and obligations as a tenant and explains to brake the Rental price.To the PDF guide

conclusion: Not against the market, but its mechanism

Apparently, the benefit of rent cover shoots to swim so far over the target. To protect, instead of solely existing tenants, it makes the life of looking for a flat or small private landlords, heavier and the of the already good earners easier.

The cover-the way is rough, workarounds, and tempted, therefore, to: sale to owner occupiers or a high transfer fee for “value-free” furniture and fixtures. This is ultimately to the detriment of all. The detour via the new building may sound in some ears antisocial. But in the long term, no way around it eh it: You can regulate the market, or even ban, but its mechanism can be overcome, never. You may criticize the market economy.

uphill flows But also in the planned economy to the water. It is better, therefore, to swim with him and to use the market mechanism for its goals. Because we all have a common goal: satisfaction for tenants and landlords alike. To do this, we need to have sufficient housing, we are creating only new construction. Neither shortage vacancy are too large, can Rent be portable and rental at the same time rewarding. The Focus-real estate, Atlas 2019

Our PDF guide contains everything that’s Important to the topics of rent, the purchase price for condos and houses in 100 cities.

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