Transformation: now!

Published by

Only a short time window

The GroKo wants to limit the distribution of houses in condominiums. The South Germans reports literally:

"This aim should also serve a bill, which will be available by the end of the year and limit the ability to convert rental apartments into condominiums."

Homes in protected areas are already almost unsalable and due to the continued adoption of further area ordinances, this is constantly expanding. Now come through the planned "apartment package" also at the federal level further restrictions in tenancy law, namely an extension of the rental price brake and a further reduction of the local comparative rents by lowering the Mietspiegelberechnung.

With the upcoming additional restrictions, many owners will be motivated to exit the real estate market. The only question is: is that still possible? Does anyone still buy apartment blocks under the then prevailing conditions?

The legislature has recognized the problem and also the solution: the people will split up and then sell their homes as condos. This is now put a stop: so that people can not escape in this way from the rental market, prevents future division. Thus, no condominiums can arise and the houses are bound to be caught in the rental.

If you can no longer divide, but you can not sell the house as a whole, because there is no market for it, you are vulnerable to future rental legislation (or tax laws or whatever may come your way). You can no longer decide that you are fed up with "enough" now. Because you have no more options for action to defend against it. So far, the distribution and sale of individual apartments still remained. This last resort is then closed, you are unable to move, the capital remains bound to the house.

Condominiums, on the other hand, will remain tradable, especially as supply is becoming scarcer as a result of these measures and the rental market may even shrink in view of the legal restrictions.

Protect yourself and share NOW!

In order to stay motile, you have to divide now. This also applies if you currently do not intend to sell. It just gives you the opportunity to do it. Otherwise this possibility will end soon.

If you have not converted, you should start immediately. Because a division takes something: it has to Distribution plans created and one Seclusion certificate be requested. Only then is the passage to the notary possible, the one declaration of division authenticated and submitted to the land registry office for enforcement.

When the conversion ordinance was passed in Berlin, the courts discussed when a division made is "safe". Result: from receipt of the application at the Land Registry Office, if this is ready, so nothing is missing. Because the citizen has no influence on the processing time at the land registry office, it therefore remains out of consideration (BGH V ZB 198 / 15, see here ).

This means:

Your application for distribution must be submitted to the Land Registry at the latest on 31.12.2019,

if you want to avoid falling under the temporal scope of the announced new restrictions. Expect to spend 3 months with the county office to handle your petition request, then you see that you should submit it in August, at the latest in September. For this to happen, you must create the splitting plans NOW. You probably need an architect for that. It's summer, they're all building. As you can see, it is hardly possible anymore. Start.

Invest at the apartment level

For the construction of assets and passive income from real estate, especially one or more condominiums, I have written an ebook, you can find the link to Amazon here , If you prefer to keep it printed in your hand, you will find it here .

Addendum 26.08.2019

I received the following feedback from a private Berlin real estate entrepreneur, which I may publish here with his permission:

A feedback on your recommendation to split apartment blocks into condominiums. After intensive discussions with other house and apartment owners I would like to inform you about the following tenor:

Apart from the fact that a distribution in condominiums notarial and organizationally represents a considerable effort for many homeowners, it would be the wrong signal. With this precautionary emergency response one operates exactly the hysteria and insecurity deliberately fomented by the left. The real estate industry would to a certain extent admit the power and enforceability of Berlin's housing policy a priori. Homeowners who have been renting in Berlin for several generations have survived the Great War, Berlin Blockade and GDR - and will not let Ms. Lompscher bring her to her knees. Against the market, against the logic and against laws can perhaps make short term, but not long term policy. It may be a hard time for property owners, but now it's important to remain sovereign. Otherwise, we move into a vicious circle: radical policy proposals provoke more and more new defensive actions in the industry. What it takes is a reflection on free-market and legal principles. Even if the Federal Constitutional Court announces interventions in the real estate market, some of which are understandable, it is necessary to legally combat the completely excessive Berlin housing policy. A request for a judicial review procedure would be an adequate first measure. To exert pressure on the parties, who call themselves at every opportunity as a rule of law, that is now the order of the day.