Construction costs are currently skyrocketing

Why should this bring less for rental properties? If I buy a condominium from the existing inventory or from the developer with the goal of renting it out, I currently pay 3.5% property transfer tax in Bavaria. That amounts to 8,750 euros in tax on an investment of 250,000 euros, which already reduces my return.

And precisely for this reason, one should not touch the property transfer tax for investors like you. You are after returns, not affordable housing.

It is about institutional companies, housing associations, and large private property holders. If they could build directly 19% cheaper, affordable housing could also be created – for rental purposes, not for capital investors.

In Munich, for example, you as a private individual can no longer buy subsidized housing yourself. Individual sales of newly built apartments are prohibited there – only property holders may directly buy entire houses (blocks), as they rent them out long term.

And that is exactly why one should not go after real estate transfer tax with investors like you. You are after returns and not affordable housing.

Uh, someone is quick to get irritated. But I can reassure you: we do not rent anything out, we purely have our own apartment. I cannot understand your anger towards private investors. Of course, every investor wants to generate a certain return. And in the worst case, that's loan interest + 1% repayment + maintenance reserve. And this minimum calculation is also made by every commercial or public landlord. Only with the difference that the fixed costs are significantly higher here due to the wages to be paid for administration. How great big investors are can be seen with Deutsche Wohnen. Which, in addition to the above-mentioned calculation, also has to generate a dividend for the shareholders. Of course, I immediately know that suspending the sales tax here will definitely benefit the tenants or result in more affordable housing... Once again on my argument about the real estate transfer tax: if it is eliminated, it will be easier for current tenants to take the leap to own a home...

Once again on my argument about the real estate transfer tax: if it is eliminated, it will be easier for current tenants to take the plunge into homeownership...

I rather believe that the leeway will immediately be used to increase something else. After 2 months, prices will be a few percent higher and no one will have gained anything. In regions where demand exceeds supply, this problem can only be solved by more supply.

And exactly this increased supply can only be created if the so-called "evil investors" from your perspective also have an incentive to invest (KfW funding, no real estate transfer tax). Then they create more living space (by the way often with 25% social mandatory funding in cities), so that more supply is available and those who then rent an expensive new apartment there leave their old usually cheaper old building apartment and more supply is then available in the cheaper price segment. If these incentives for investors are not created, hardly any new apartments will be built and the scarcer supply will accordingly become more expensive. Consequence: Everyone has to pay much more. But for many, a too complex way of thinking is simply required, and people are reluctant to do that (not referring to you!). Because all this can be seen with the unconstitutional rent cap in Berlin (less supply => higher prices), which has failed spectacularly. If no one invests in Germany anymore, then no one is helped either. The state should not intervene too much here, because then investors will withdraw from the currently already too tenant-friendly German market. Because the returns are certainly not very high. One can already be grateful if investments are made here. But due to the sharply rising construction costs, this will soon be over anyway, no one will build anymore. Then those people can observe for themselves how prices for the existing old buildings will develop when there is less new construction.

My thought on real estate transfer tax and purchase incidental costs in general is actually a bit different. Namely that in the private sector, the "I only buy/build once in my life" mindset is still somewhat encouraged. And I'm not sure if that's always such a good thing.

On the one hand, people tend to invest in higher quality and possibly more sustainable construction because they want to spend their whole life there. On the other hand, it also seems to lead to us living extravagantly, because we tend to look for the "jack of all trades" for all phases of life.

In other countries, it is much more common for a young family to move into a "starter property" and then, after a few years, look for something new depending on their needs. There are also some people in this forum who recommend that, but overall I hear it very, very rarely. And yes, I do believe that purchase incidental costs play a role. If you have to pay a five-figure real estate transfer tax every time you buy something new and get nothing in return for it, you think about it quite carefully. And then you read about people in their twenties already worrying about barrier-free living for old age.

I think that's more what bothers me about it.

Of course, that only helps to a limited extent with the topic "we want to build faster." Although on the other hand, if we lived more in line with our needs, we would also need less living space. And in my opinion, that is already difficult in the ownership sector.

Yes, of course. If every change costs 10-12% ancillary purchase costs that are irrevocably lost, then you simply cannot recommend buying an apartment now and a house in 5 years. At current prices, that is capital destruction par excellence. Personally, the agent fees bother me much more than the taxes, because you can't even convince yourself that they benefit the general public.

And exactly this increase in supply can only be created if the "evil investors" from your point of view also have an incentive to invest (KfW funding, no real estate transfer tax)

I do not see investors as evil. But regarding the real estate transfer tax, I mainly see a revolving door effect. At the same rate, everyone can afford a more expensive property, so that is what happens. And honestly, for a project developer, the real estate transfer tax is a minor item. The main problem in recent years has been the building land.