In Germany owner-occupied houses and flats are taxed very differently from those that are rented out. While owner-occupied homes are treated as a consumer good, real estate which is let is regarded as a capital investment. As a result of this unequal treatment, the relative advantage of buying one’s own home varies over time. Due to the highly favourable trend in interest rates, owner-occupying has in recent years become considerably more attractive. As an evaluation of residential property offered and sought on ImmobilienScout24, Germany’s largest online real estate marketplace, shows, there is a good chance that the proportion of owner-occupied homes will continue to increase in the next few years.
IW Research Group Macroeconomic Analysis and Forecast IW-Trends No. 4 27. November 2017
Has the German Economy Reached its Limit?: Skilled Labour Shortages as a Brake on Growth
The German economy is performing significantly better than was expected in the first few months of this year. During the course of 2017, certain early fears – especially of a weakening of the global economy due to increasing protectionism – have proved ...
IW Research Group Macroeconomic Analysis and Forecast IW
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