Thursday, May 6, 2021

Building Land Mobilization Act

 So, what is the Building Land Mobilization Act?

For around six months, the German government (mainly the CDU-CSU-SPD coalition) has been working on a scheme for a new law.

The law basically says in draft form....while you may own a residence building (apartment building) and you desire to convert it over to a condo situation.....the law would prevent you from doing so.  There would be some waivers or instances that you might be able to go forward.....but it's designed for places like Hamburg, Frankfurt or Berlin....where condo conversion brings a place to a unaffordable point for most working-class Germans.

Fair?  Well....it means you as a property/residence owner....are locked in.   You can operate the residence for monthly rental income.  You can sell the property to someone else to operate as a residence for monthly rental income.  The odds that you might pour money into serious renovation?  I would have doubts that you'd feel that happy about doing it.  The odds that you might just come to a closure program....end the rental contracts for the 40-odd apartments in the building, and five years later.....convert it quietly to a condo?  I might suggest that scenario.

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