Why are UK house prices so much higher than in Germany?

1984ReturnsForReal_2

adecor wrote: »

We now live in Germany and I think this is a big reason that the property prices stay pretty stagnant.

Capital gains

Currently profits made on sales of properties held as a private asset are not taxed if the property
has been held for over 10 years. However, there are plans to introduce a (20%) capital gains tax
in the coming years. If a property has been held for less than 10 years capital gains are taxed as

income (progressive tax rates).

Can you clarify what the status is with the land that the houses are built on?

I thought there is some sort of abnormality compared to the UK situation somewhere & has something to do with a lease type role or land.

shortchanged_2

chucky wrote: »

why is the grass always greener on the other side by the people that think that the capital city of Germany is Berlin...

and the correct answer is?

1984ReturnsForReal_2

shortchanged wrote: »

and the correct answer is?

Brussels........

shortchanged_2

1984ReturnsForReal wrote: »

Brussels........

Good effort.:)

1984ReturnsForReal_2

shortchanged wrote: »

Good effort.:)

It is an official secret.


Not a lot of people know

adecor

1984ReturnsForReal wrote: »

Can you clarify what the status is with the land that the houses are built on?

I thought there is some sort of abnormality compared to the UK situation somewhere & has something to do with a lease type role or land.

Not too sure exactly what you mean. We bought our land and had to pay some taxes together with the notar fees. We also have to pay other taxes since the house was occupied. Here's the link to the site I got the capital gains tax info that also shows other tax issues http://germany.alphare.net/pdf/German-Property-Tax-Overview.pdf

Cleaver

HAMISH_MCTAVISH wrote: »

Primarily because of German population decline versus UK population increase.

Population decline and economic stagnation has prompted 1.7 million people to move away from eastern Germany since reunification, leaving behind empty and aging towns and villages.

Some eastern German cities have lost 20 to 30 percent of their populations since 1990.

carolt wrote: »

No, it's primarily because, as Alan Coss said, tenants have proper rights there, so there is no particular incentive to buy at all costs as here.

Well it's probably a bit of both isn't it? If a place's population is decreasing by 30% then house prices will obviously fall. And if renting is more popular than buying then there isn't the reason for house prices to rise.

1984ReturnsForReal_2

adecor wrote: »

Not too sure exactly what you mean. We bought our land and had to pay some taxes together with the notar fees. Here's the link to the site I got the capital gains tax info that also shows other tax issues http://germany.alphare.net/pdf/German-Property-Tax-Overview.pdf

We went over to an army base in 2007 & stayed with relatives who lived just outside.

I can't remember the exact conversation but it went down the lines of most properties were leased or the land or house was leased.

Perhaps it was just the area.

Jowo_2

As a guess, perhaps the lower house prices reflect lower demand and higher supply compared with the UK?

The UK has suffered from not just a large population increase over the last few decades (and the last in particular) but also has a big increase in the number of smaller households (through relationship breakdown, etc, plus the UK also has the highest rate of teen pregnancies and single parenthood in Europe).

So perhaps Germany is better at expanding the number and type of housing to match changes in its society which the UK simply has not?

carolt

chucky wrote: »

why is the grass always greener on the other side by the people that think that the capital city of Germany is Berlin...

I know this has already been picked up by another poster, but just had to quote this.

So chucky, to all those of us who imagined that Berlin had been the capital of a reunified Germany for many years now please explain exactly where you think the capital is?