Does the real estate market increasingly force more families to build?

Young families are in the disadvantageous position of hardly being able to win the bidding war for a planned house purchase against DINKS, heirs, etc. While the former often can only offer 1 to 1.5 salaries for 3-5 people, DINKS with 2 salaries for 2 people have a clear advantage at the current price level. Normally, the first purchase of a property (as in the past) should be exempt from [Grunderwerbsteuer]. Then the government could also do without the "oil on the price fire" aka [Baukindergeld] with its silly cutoff income limits. In England, [Grunderwerbsteuer] was completely abolished up to a purchase price of 300,000 pounds; beyond that, it is charged progressively, from 1 to a maximum of 12 percent. As long as a house costs roughly the same for the young family and the childless mid-fifties civil servant couple, not much will improve for the former on the market. [Baukindergeld] alone is not enough for that.

Das Baukindergeld reicht da allein nicht aus.

That's true. We will benefit from the Baukindergeld, but of course it is basically complete nonsense. I suspect that there is no one or almost no one for whom this amount actually makes the difference whether they build/buy or not. And those few should actually be advised against it anyway, especially since there is still some confusion about whether all eligible people will actually get a share of the cake.

Again with the inheritance topic... The tax-free allowance for children is 400k. Only above that amount do you have to tax the rest at a modest 15%. With a million in assets, that would be merely €90,000 in taxes, leaving €910,000. The whining fits spoiled only children. If there are two children, each pays €15,000. About 1.25% of the German population are millionaires. Are you one of them? What the heck is the whining supposed to achieve here?

Nevertheless, this kind of inheritance tax is not okay! People who, for example, are fortunate enough to inherit a multi-family house in Hamburg or Munich, without having a certain financial background themselves, cannot manage this without selling or taking out a loan, since the value will always be significantly over 400k. Thus, it often affects tenants again, as investors buy and drive prices up.

And 15% is certainly no bargain!!!

People who are, for example, in the fortunate position of inheriting a multi-family house in Hamburg or Munich without having a certain financial background themselves cannot manage this without a sale or taking out a loan, since the value will always be well over 400k.

How did the previous generation pass on this rental building as an inheritance? By having the tenants slowly pay off the heavily mortgaged house. And now a new partial loan with ongoing rental income—why exactly is that a problem? Definitely not because of:

Thus, it often hits the tenants again

Yes, if one sells. But no tax is to blame for that, rather the price investors pay in Munich. If you get 40 times the annual net cold rent, you naturally want to sell. That has exactly zero to do with any tax.

Anyone who inherits a paid-off rental building in a reasonable location inherits an excellent additional retirement provision, provided the property is not in need of renovation. With that could one finance a much higher tax—but then you just don’t immediately get your fill. Complaints on such a high level...

People who, for example, are lucky enough to inherit a multi-family house in Hamburg or Munich without having a certain financial background themselves, cannot manage this without a sale or taking out a loan, because the value will always be well above 400k. Thus, it often affects the tenants again, since investors buy and drive prices up. And 15% is definitely not a bargain!!!

No, you have a misconception.

[*]If the property is paid off, then it is not a problem to refinance 15% of the property value at any bank on the very best terms. The property pays for itself.

[*]If the property is not paid off, then the inheritance value is less than the property value. Extreme example: 10 million property value with 10 million remaining loan meant that no inheritance tax had to be paid.

No matter how you look at it: only the value minus debts is taxed, and this always turns out positive for the heir.

And 15% is quite fair compared to capital gains tax and income tax. Be glad that an inheritance is not taxed as income.

That's true. We will benefit from the Baukindergeld, but of course it is actually total nonsense. I suspect that there is no/almost no one for whom this amount actually makes the difference whether to build/buy or not. And those few should actually be discouraged anyway, especially since there is still some confusion about whether all eligible people will actually get a share of the cake.

The Baukindergeld is well-intentioned but poorly executed. A flat-rate subsidy of 12,000 euros over 10 years doesn't really help a middle-class family in urban areas at the moment, and in rural areas with more vacancies it is taken along on the side but not really needed either – and in the end possibly invested in a home sauna or branded kitchen (just like back then with the home ownership grant). I also consider the number of people who build or buy solely because of the Baukindergeld to be very limited.