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  1. #1

    Germans up in arms over 'rent insanity'

    https://www.thelocal.de/20190406/ger...-rent-insanity

    Michaela Franz initially thought she was spared sharp rent hikes when her new property owner scrapped plans to renovate the Berlin building she has lived in for a decade. In fact, something worse was brewing.
    A few days later, she received a letter notifying her that her rental contract had been terminated and that she would have to move out by the end of May. For the 58-year-old, the landlord's intention was clear: kick out long-time tenants and build new luxury apartments that fetch higher rents.

    Not only in Berlin, but across Germany, Franz's experience has been playing out. And the wave of gentrification and rising rents is provoking rising anger and leading some to even ponder radical solutions like expropriating housing from institutional landlords.

    Tens of thousands of people are poised to join marches against "rental insanity" (Mietwahnsinn) on Saturday in cities like Munich, Cologne and Frankfurt.

    The problem is most acute in the capital, where rents have doubled over the past decade, as Germany's booming job market attracts an influx of workers, putting pressure on the housing market. Average rent prices in Berlin have pushed past 10 euros per square metre per month, according to a recent study by a real estate group CBRE Berlin and German mortgage bank Berlin Hyp AG.

    As property prices in Berlin traditionally lag behind those of major European capitals like Paris and London, investors have also swooped in, betting that the real estate boom was only just starting.

    'Class struggle'

    But a popular backlash appears to be growing, and organisers of an initiative to requisition housing from real estate groups will on Saturday begin collecting signatures in their push for a referendum on the issue in Berlin.

    The campaign's spokesman Rouzbeh Taheri said the movement had radicalised as government measures to cool the property market have failed to work.

    "Many say this is a type of class struggle. Yes that's what it is. But we did not start it," Taheri said. "We're taking defensive measures against the class struggler from the top who has for years been fighting against tenants."

    The "Expropriate Deutsche Wohnen & Co." initiative, named after the biggest private player in Berlin, targets companies with more than 3,000 apartments in their portfolios. Of an estimated two million rental apartments in Berlin, Deutsche Wohnen owns 111,500, followed by Vonovia with 44,000.

    Taheri argues that cutting them down to size would strip them of the influence they wield in deciding market prices.

    "It's about sending a signal on which direction the city wants to go. And a signal to speculators -- telling them that your capital is not safe in Berlin," said Taheri.

    But critics question whether the private groups really wield that much influence. Calling the initiative "completely absurd", Harald Simons, an economist at Leipzig University, noted that 70 percent of rental apartments across Germany are owned by small landlords who each hold between two and 20 apartments.

    Singling out the big groups would "mean that about five percent of Berlin tenants will suddenly not have to pay much while the rest would have to keep paying just as much," he said.

    The extreme move could also scare off investors who want to move their businesses here and create new jobs, critics say.

    Further, taxpayers face a huge bill -- Berlin authorities have estimated the cost at €36 billion ($40 billion).

    "When people learn about how many billions this will cost, many would see this differently," Berlin Mayor Michael Mueller said.

    Deutsche Wohnen boss Michael Zahn said the organisers of the initiative were taking a "very populist tone" and warned that the public was not being given the full picture.


    'Rent rebel choir'

    Amid the heated debate, Franz, who suffers from depression and receives state aid, was digging her heels in. She has taken her case to the courts, arguing "hardship circumstances" under a social clause in rental laws that could halt evictions.

    Across town in southeastern Berlin, Hans von Maydell was also gearing up for battle, as the building he has lived in for 45 years changed ownership for the first time early this year.

    "The new owner ... buys and sells property with money from investors who want to make the highest profits possible," the 75-year-old said.

    In a pre-emptive move, he and fellow residents have sought protection under Berlin's "Milieuschutz" rules aimed at halting gentrification. Tenants have even formed a "rental rebel" choir to belt out their protest against rising rents.

    For von Maydell, a roof over one's head is as essential as drinking water and should not be "left to speculation and the free market".

    "We are in favour of these things coming under communal control and managed for the well-being of the community, and not for the well-being of the few who want to get rich quickly and ruthlessly."

  2. #2
    Banned Yadryonych's Avatar
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    *Yawn* I bet majority of these also in full support of taking in more immigrants and giving them apartments for free. Why am I not surprised?

  3. #3
    Quote Originally Posted by Yadryonych View Post
    *Yawn* I bet majority of these also in full support of taking in more immigrants and giving them apartments for free. Why am I not surprised?
    This literally has not a single fucking thing to do with immigration, numbskulls.

    Have you even fucking read the post? Gentrification and real estate speculation. Which is literally the primary driver behind real estate price hikes everywhere from Moscow to London. That and fucking AirBnB.

    Germans just happen to be about 10 years late to the party compared to most other major European nations.

    Go shitpost somewhere else.
    Last edited by Citizen T; 2019-05-06 at 02:21 PM. Reason: Infracted for flaming

  4. #4
    Herald of the Titans enigma77's Avatar
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    Enforce strict rent controls and watch how quickly they'll fuck off with luxurious apartments and the sort.

  5. #5
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    "I demand you look out for my best interests and not your own!"

    That's what this is boiling down to from what it looks like. Renters want to live in a posh area while paying low rent, landlords want to renovate the property that they own to attract greater amounts of money from the more skilled labor force that's arriving in town every day. So who's problem is it?
    O Flora, of the moon, of the dream. O Little ones, O fleeting will of the ancients. Let the hunter be safe. Let them find comfort. And let this dream, their captor, Foretell a pleasant awakening

  6. #6
    I am Murloc!
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    Quote Originally Posted by kasuke06 View Post
    "I demand you look out for my best interests and not your own!"

    That's what this is boiling down to from what it looks like. Renters want to live in a posh area while paying low rent, landlords want to renovate the property that they own to attract greater amounts of money from the more skilled labor force that's arriving in town every day. So who's problem is it?
    simple: if those are evicted, they will cost the city a shitton of money in support, because the city WILL have to house them elsewhere. city will just try to stop evictions.

  7. #7
    Herald of the Titans enigma77's Avatar
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    Quote Originally Posted by kasuke06 View Post
    "I demand you look out for my best interests and not your own!"

    That's what this is boiling down to from what it looks like. Renters want to live in a posh area while paying low rent, landlords want to renovate the property that they own to attract greater amounts of money from the more skilled labor force that's arriving in town every day. So who's problem is it?
    In Europe, F*** yeah we tend to take the side of the common person not the filthy rich people and their wicked, destructive, selfish interests.

  8. #8
    Quote Originally Posted by kasuke06 View Post
    "I demand you look out for my best interests and not your own!"

    That's what this is boiling down to from what it looks like. Renters want to live in a posh area while paying low rent, landlords want to renovate the property that they own to attract greater amounts of money from the more skilled labor force that's arriving in town every day. So who's problem is it?
    Both, in the OP's case its mainly the renter's problem, but in many cases like this the owner can't just throw out the renter without a good reason. Rent prices have increased by a far greater number then inflation or average wages so what this means for the average person is that while they might get a raise now of then their living condition will decrease, and all this while the economy is still growing.

  9. #9
    Have they ever been to British Columbia?

  10. #10
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    Quote Originally Posted by ranzino View Post
    simple: if those are evicted, they will cost the city a shitton of money in support, because the city WILL have to house them elsewhere. city will just try to stop evictions.
    and then the landlords will make things as shitty as they're legally allowed to until the current renters all leave so they can renovate at significantly increased cost. Hooray! Nobody wins and everything is shitty for everyone!
    O Flora, of the moon, of the dream. O Little ones, O fleeting will of the ancients. Let the hunter be safe. Let them find comfort. And let this dream, their captor, Foretell a pleasant awakening

  11. #11
    "I want to hi jack your asset and pretend its my house because i enjoy my lower rent"

    k germany

  12. #12
    ever hear about the housing crisis in the soviet union?

  13. #13
    I dunno if my thoughts make sense, but

    She's 58 and she's renting, what's going on there? Maybe I'm just too used to not living in a city and home ownership tends to be higher.
    Booming job market is great. Kinda wonder where the people are coming from? I don't particularly care for 'lol why are you taking so many refugees btfo germany' but it seems like free movement of people across the EU would really contribute to this.

    Another reason not to even try planting roots in a city unless you can buy property I guess.
    If you are particularly bold, you could use a Shiny Ditto. Do keep in mind though, this will infuriate your opponents due to Ditto's beauty. Please do not use Shiny Ditto. You have been warned.

  14. #14
    This is what happens if you have an Authoritarian government that incentivizes not owning a home or personal property. Good example of a post-modern, "liberal" government that is voted in which ironically oppresses the public and lets the few get rich and take advantage of them.
    Sylvanas Windrunner is not hot... Change my mind.

  15. #15
    Who knew that houses didn't magically appear when you get more people.

  16. #16
    Quote Originally Posted by Mihalik View Post
    This literally has not a single fucking thing to do with immigration, numbskulls.

    Have you even fucking read the post? Gentrification and real estate speculation. Which is literally the primary driver behind real estate price hikes everywhere from Moscow to London. That and fucking AirBnB.

    Germans just happen to be about 10 years late to the party compared to most other major European nations.

    Go shitpost somewhere else.
    Your uneducated ignorance is cute, yet completely irrelevant.

    Again, this has everything to do with giving away real estate to immigration programs, just because your tiny mind cannot comprehend bigger scales doesn't mean it's not there.

  17. #17
    Quote Originally Posted by kasuke06 View Post
    "I demand you look out for my best interests and not your own!"

    That's what this is boiling down to from what it looks like. Renters want to live in a posh area while paying low rent, landlords want to renovate the property that they own to attract greater amounts of money from the more skilled labor force that's arriving in town every day. So who's problem is it?
    It's a bit more complicated than that.

    I live in Madrid in Spain. I do live in a highly gentrified and honestly quite pricey neighborhood. I never had any illusions about that. My building has 20 apartments, when I moved in I would say about half were locals, relatively young folk, and the rest like me foreigners, mostly other Americans and Scandinavians.

    About 4 or so years ago when AirBnB really took off, real estate speculators started buying up apartments or renting them over market price to re-let them as AirBnB.

    Now there are 6 of us left living in the building full time, the rest are all AirBnBs. My entire neighborhood is turning into this shit. Rent in the area increased 110% in 5 years. I am lucky as I am friends with my landlord and he doesn't want to sell.

    There are countless empty apartments in the area owned by real estate speculators who either bought it as an investment and are waiting to dump them in a few years or are actually quite shitty or small and can't be sold or rented at the insane asking rates.

    It's the problem with institutional speculators. They can buy and sit on something for years without renting it out or selling it. Which wipes out entire neighborhoods. Locals are outpriced, some of the buildings degrade, some are torn down or undergo massive renovations turning entire blocks into constructions sites further driving locals out. Apartment buildings that do short term rentals have constant problems with AirBnB guests being rowdy or destructive.

    Apartments just sitting empty often end up with squatters and it takes months and legal action for the other tenants to coerce the absentee landlords to take legal steps to evict the squatters.

    Local businesses lose their clients, schools lose the kids etc.

    There has to be a balance between the interests of investors and property owners and the other residents who have the right to a livable neighborhood.
    Last edited by Mihalik; 2019-05-05 at 09:57 PM.

  18. #18
    Quote Originally Posted by KevyB View Post
    Your uneducated ignorance is cute, yet completely irrelevant.

    Again, this has everything to do with giving away real estate to immigration programs, just because your tiny mind cannot comprehend bigger scales doesn't mean it's not there.
    Citation needed. Or STFU and GTFO.

  19. #19
    Quote Originally Posted by KevyB View Post
    Your uneducated ignorance is cute, yet completely irrelevant.

    Again, this has everything to do with giving away real estate to immigration programs, just because your tiny mind cannot comprehend bigger scales doesn't mean it's not there.
    I'm sure you have empirical evidence to back this up, and not only your gut feeling?

  20. #20
    This is hardly a European issue. Hell my SO had the same shit happen to her and her ex when they lived in Hollywood, and it was in the lower income section as well. Gentrification has pretty much pushed the gay community out of West Hollywood and into areas like eagle rock to the north east.

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