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Blog | 29. August 2016

THE RATE OF HOME OWNERSHIP IN BERLIN IS ONLY 15 PERCENT – BUT THAT’S ALL ABOUT TO CHANGE

Home ownership is still the best fully-funded retirement plan. This is largely due to a lack of suitable alternatives. As guaranteed interest rates keep on sinking, pension and life insurance plans no longer offer the reliable security for retirement they once did. In contrast, property values have continuously increased over the years, especially in Berlin. The returns from property add up to much more than the guaranteed interest from insurance plans. In addition, home ownership offers protection from rising rents and offers a secure, worry-free retirement. This is the best approach to a fully-funded retirement plan. After all, nobody wants their retirement spoiled by low guaranteed interest rates.

However, the rate of home ownership among Germans is low in comparison to the rest of Europe. Berliners are particularly poor performers. The rate of home ownership in the capital, at just 15 percent, is the lowest in Germany – and that’s despite the fact that Berlin has been experiencing an economic upswing for years now. The capital’s residents should take advantage and secure their retirements, and invest well ahead of time in a fully funded retirement plan, with more lasting value than life insurance’s dwindling guaranteed interest rates.

BERLIN’S POLITICIANS DISCOVER HOME OWNERSHIP AS A FULLY-FUNDED RETIREMENT PLAN

Politicians, such as Berlin’s CDU delegate, Stefan Evers, have recognized the problems associated with a low rate of home ownership. On the one hand, diminishing guaranteed interest rates threaten the fully-funded retirement plans of many citizens and could lead to many having to accept a reduced quality of life during their retirement. It is unlikely that guaranteed interest rates will rise again any time soon. This is why home ownership has an important role to play as a fully-funded retirement plan for a worry-free life after work. On the other hand, Evers also sees home ownership as an important contribution to the quality of life in the city. “The low rate of home ownership in Berlin is a problem. Stable neighborhoods need a healthy mix of rental units and condominiums”, according to the CDU construction expert. This is why he is convinced that the rate of home ownership simply has to increase.

Politicians have various means to raise the rate of home ownership. The most important is obviously information: Anyone looking for a reliable fully-funded retirement plan, but put off by the low guaranteed interest rates, is best served by home ownership. In addition, the rate of home ownership in Berlin can be increased via the promotion of new residential developments. Other suggestions to open the path for more citizens to this form of fully-funded retirement and to enable a secure retirement include eliminating the real estate transfer tax for first-time property purchases, and targeted support for middle- and low-income households.

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Blog | 29. August 2016

THE RATE OF HOME OWNERSHIP IN BERLIN IS ONLY 15 PERCENT – BUT THAT’S ALL ABOUT TO CHANGE

Home ownership is still the best fully-funded retirement plan. This is largely due to a lack of suitable alternatives. As guaranteed interest rates keep on sinking, pension and life insurance plans no longer offer the reliable security for retirement they once did. In contrast, property values have continuously increased over the years, especially in Berlin. The returns from property add up to much more than the guaranteed interest from insurance plans. In addition, home ownership offers protection from rising rents and offers a secure, worry-free retirement. This is the best approach to a fully-funded retirement plan. After all, nobody wants their retirement spoiled by low guaranteed interest rates.

However, the rate of home ownership among Germans is low in comparison to the rest of Europe. Berliners are particularly poor performers. The rate of home ownership in the capital, at just 15 percent, is the lowest in Germany – and that’s despite the fact that Berlin has been experiencing an economic upswing for years now. The capital’s residents should take advantage and secure their retirements, and invest well ahead of time in a fully funded retirement plan, with more lasting value than life insurance’s dwindling guaranteed interest rates.

BERLIN’S POLITICIANS DISCOVER HOME OWNERSHIP AS A FULLY-FUNDED RETIREMENT PLAN

Politicians, such as Berlin’s CDU delegate, Stefan Evers, have recognized the problems associated with a low rate of home ownership. On the one hand, diminishing guaranteed interest rates threaten the fully-funded retirement plans of many citizens and could lead to many having to accept a reduced quality of life during their retirement. It is unlikely that guaranteed interest rates will rise again any time soon. This is why home ownership has an important role to play as a fully-funded retirement plan for a worry-free life after work. On the other hand, Evers also sees home ownership as an important contribution to the quality of life in the city. “The low rate of home ownership in Berlin is a problem. Stable neighborhoods need a healthy mix of rental units and condominiums”, according to the CDU construction expert. This is why he is convinced that the rate of home ownership simply has to increase.

Politicians have various means to raise the rate of home ownership. The most important is obviously information: Anyone looking for a reliable fully-funded retirement plan, but put off by the low guaranteed interest rates, is best served by home ownership. In addition, the rate of home ownership in Berlin can be increased via the promotion of new residential developments. Other suggestions to open the path for more citizens to this form of fully-funded retirement and to enable a secure retirement include eliminating the real estate transfer tax for first-time property purchases, and targeted support for middle- and low-income households.

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