nordanney
2024-09-09 23:27:36
- #1
You have to completely disconnect or separate owner-occupied housing from rental housing construction. Owner-occupied homes only have to be affordable. Rental housing must be profitable. And with the large housing companies, like Vonovia or LEG, which are currently focusing on affordable housing and offering average rents of 6-7€ as affordable, you cannot build as cheaply as necessary in their core markets, such as the Ruhr area. Even in social housing (in terms of quality), you have to reckon with nearly 3,000€/sqm pure construction costs. But for these apartments to even be affordable, you usually need rents well above 10€ – it’s just nonsense when only clientele who can afford 3.8€ to 4.95€ live in Duisburg Marxloh. The decision there is digital – do it or leave it. I had new buildings from a housing company in Cologne on the table. To finance them and still get a return (we’re talking about returns of just over 3% after all costs and financing, so you don’t get rich from it), the rent MUST be 15€/sqm. For the homeowner, a return doesn’t matter. They build their house for T€ 750, for which they would get 2,000€ rent per month. That’s 3.2% return BEFORE taxes, management, maintenance, rent loss, etc. The homeowner can do that; it’s for themselves and you can’t calculate quality of life with returns. Vonovia and others cannot do that – they would rather need 5,000€ rent or more, which no one can afford. That’s where the problem comes from. It doesn’t matter whether I offer 40sqm apartments at 15€/sqm or 200sqm apartments at 15€/sqm. Nobody simply rents those. You can compare this a bit with e-cars. Which ordinary person can and wants to buy a "green" car for 80k? The market is lacking.Why doesn't Vonovia just build smaller and without KNX?