Special: Real Estate & Corona – Updates

More articles and analysis on real estate in the Corona Crisis:

• Demand increases (Google Trends): Real estate sales
• Is the real estate bubble bursting? Price development
• Housing bubble, what does that mean?
• COVID-19: Coronavirus Meaning

Real estate market in Corona times

It is quite clear that the market for real estate is – from a business and economic perspective – a market like many others. It is driven by supply and demand and is also subject to numerous factors influencing the economy as a whole. It is therefore not surprising that the consequences of the Corona pandemic are being felt in the real estate market.

Short-time work, possible job loss, drop in oil prices, the uncertainties regarding the time after Corona: all these are factors where a majority thinks: “Buying or selling real estate is not the right time now”. Prices will fall, rental income will be lost for an indefinite period of time – no prospects for lucrative real estate deals. There are also very practical limitations. Due to the dramatically reduced contact possibilities, it is currently almost impossible to negotiate sales contracts and conclude them with a notary. Lucky who could make his sale before the crisis? From now on it’s all downhill? We at Lukinski have a differentiated opinion!

Corona Analysis 08/20 – now online

Now online – Real Estate Corona crisis: sale of house, apartment, apartment building, the demand is increasing, that show the trends. In these days many speak of the second wave, which comes now on Germany in addition, the whole world. Already at the beginning, at the beginning with the Corona Pandemie, in many economic in addition, financial messages before it warned that in the autumn a wave of the insolvencies will come on us. A logical consequence of insolvency is the loss of property, not only in the form of jewellery, cars or furnishings, of course real estate will also be affected if the rate of insolvencies in Germany increases.

The trend analysis in the field of real estate sales (08/20) deals with the increasing demand. Very directly visible, among others on the main keyword “sell property”. The charts and the review of the last 12 months can be found below. Moderately increased, on average only 2 to 3 points, are the sale of house and condominium. So there doesn’t seem to be much change in the amount of search queries here yet.

Very noticeable, on the other hand, is the trend on the topic of “selling multi-family houses”. As you will see in the individual analyses and charts, the trend is jumping upwards these days.

Now online: Real Estate Corona Analysis 08/20

Opinions are mixed

In mid-March 2020, when the pandemic had already reached the German market, no one in the real estate world saw any negative consequences for the property market. There was no talk of contact restrictions, business life was still largely normal. Only with the tightening of contact rules, the closing of public institutions such as schools, but also restaurants, etc., the tone changed. Here is a brief summary of the positions:

Corona: Property prices will fall

After prices for houses and apartments still rose by an average of 5% last year, and in some places by more than 10%, Corona will cool the market noticeably. Because:

1. Buyers fear for their jobs
2. Loss of rent for rented properties is now a real calculation factor
3. Every real estate cycle so far ends in a recession
4. A recession in the economy also affects the real estate industry
5. Share packages lose value, so there is no purchase capital for real estate
6. This particularly affects the private buyer/seller
7. Already in 2008, during the financial crisis of the Euro, the real estate market collapsed by 12%.

House price development in Germany:

You can find more statistics at Statista

Corona has no influence on property prices

Because the investment in real estate is also often referred to as “concrete gold”, the ownership of real estate proves to be valuable and unshakeable, especially in such a crisis. Regardless of whether it is owner-occupied property or a rental investment: the market for real estate will continue to boom. Because:

1. Lending rates remain at historically low levels
2. Interest rates are kept stable precisely in order to cope with crises
3. The shortage of housing in Germany persists
4. There is no real estate bubble because banks did not make loans lightly
5. Rental and owner-occupied apartments are still in high demand
6. Real estate is a long-term investment
7. Demanded residential locations continue to have stable prices

Sell house in Corona times

Despite contact restrictions and other restrictions on the movement of goods and merchandise: In Germany, some activities regarding the real estate market are still permitted! For example, owners of rentable properties are allowed to arrange viewing appointments on a limited basis. However, no mass viewings, but only individual appointments. This makes renting more difficult, but not impossible. Attention: The regulations depend on the federal state!

Read more about the current regulations when selling a house in Corona times here!

Overall, it is now for all who own a property and want to sell it: Keep calm! In addition, it is important to have the right estate agent as a partner for the sale at your side. Hiring the right real estate agent is the order of the day. Discretion in selling real estate is also very important at this time. Discreet brokers have significant advantages for the seller here!

Discreet brokers: particularly recommended in times of crisis

Discreet brokers always work “to the exclusion of the public” when selling real estate. They have access to an extensive customer file without having to advertise your property in the relevant ways. They are accustomed to carry out viewing appointments and all other activities around the house sale almost in all silence. Mass appointments, broad advertisements, etc. are not the business of the Diskret broker. Thus, he fulfils all the requirements for a sales management of real estate in times of Corona.

However, discreet real estate marketing – also referred to as “secret sale” – poses very special challenges for the real estate agent.

• The Diskret broker sells your house with absolute discretion
• The Diskret broker does without the usual Internet portals for real estate offers
• The Diskret-Makler has an extensive prospective customer file
• The discreet broker thus often ensures a faster sale of your property
• Especially when the normal distribution channel is closed.
• The discreet broker sells real estate of all types and sizes
• The Diskret broker also works when the seller lives abroad

Lukinski with its team of experts is a discreet broker in the Rhine-Main area. We also inspect properties under these special conditions and evaluate your property professionally and discreetly.

Chimney sweep overview

• Controlled fire protection
• Controls heating and combustion systems
• Regulation recorded by the Chimney Sweep Act
• Merger into guild
• Chimney maintenance obligation: 4 times for all-year-round heating & 3 times for usual heating
• Since 2013 free choice of chimney sweep

Back to the wiki: Real Estate

The legal succession – this is how you inherit according to the law

Legal succession regulates both the order of heirs and the individual amounts that are inherited. First the closest relatives, such as children and grandchildren, inherit and then the more distant relatives, such as nephews and nieces. Closer relatives generally exclude the more distant relatives from inheritance. The proportion to which the individual heirs inherit is documented in the certificate of inheritance.

The legal succession is based on the Parantel – or order system. It divides the relatives into different orders. Accordingly, children and grandchildren of the deceased belong to the first order. Parents, siblings, nieces and nephews of the testator are assigned to the second order. The third order includes grandparents, uncles and aunts as well as cousins of the deceased. Spouses and registered partners are not considered relatives, but have the right of inheritance as spouses. This gives them a special status and limits the right of relatives to inherit. Relatives of the preceding order always exclude relatives of a subsequent order from the succession.

The spouse – special position in the law of succession

Although the spouse or registered partner is not considered a relative in the legal succession, he or she has a special position. If the deceased leaves both a spouse and children, the spouse inherits half of the estate and the children the other half. However, if there are more than three children, the spouse receives only one-fourth and the children divide the remainder among themselves. If there are only second-order relatives or grandparents, the spouse receives half of the estate and the second- and third-order relatives share the other half. If there are no relatives of the first, second or third order, the spouse inherits everything.

If the deceased leaves neither relatives nor spouses, the state inheritance law applies. The federal state in which the deceased last had a residence inherits the estate.

Heirs of the first order – children and grandchildren

The first order includes the children and grandchildren of the deceased. Non-marital children born after 1 July 1949 are also entitled to inherit. If a child of the deceased and the spouse are alive at the time of death, both inherit half. If several children are living, the inheritance is divided between them and the spouse. If children of the deceased are already deceased, the grandchildren inherit.

Explained by example: If the deceased leaves his mother, his spouse, 2 children with two grandchildren each and a deceased child with one grandchild, the following succession results. The mother is not entitled to inherit because she belongs to the second order and there are heirs of the first order. The spouse and the two living children inherit in equal shares. The grandson of the deceased child takes the place of the parent in the succession and thus inherits in equal shares with the two living children and the spouse. The grandchildren of the living children also do not inherit.

Heirs of the second order – parents and siblings

If there are no children or grandchildren, the heirs of the second order. The second order includes parents, siblings, nephews and nieces. If both parents of the deceased are alive at the time of death, the estate is divided in half. However, if one parent is already deceased, the descendants of this parent, i.e. siblings or nieces and nephews of the deceased, take their place.

Explained by example: The testator leaves his mother, a sister with two children, a nephew of the deceased brother and a half-sister from the father’s second marriage. The inheritance is therefore distributed as follows: One half of the estate goes to the mother’s line and the other to the father’s line. Since the mother is still alive, she receives half of the inheritance. Since the father is already deceased, his inheritance falls to his children. In this case, to the sister, the deceased brother and thus the nephew of the deceased, and the half-sister from the second marriage. These three divide the other half of the inheritance. The children of the still living sister do not inherit.

Heirs third order – grandparents and aunts / uncles

If the deceased leaves only heirs of the third order, the inheritance is divided as follows. The inheritance of the deceased falls to the grandparents and their descendants. If a grandparent has already died, the inheritance also falls to the aunts, uncles, cousins of the deceased.

Explained by example: If the testator leaves only his grandmother and an aunt with two children, they inherit as follows. The grandmother receives half of the estate. Since the grandfather is already deceased, his descendants inherit his share. In this case, therefore, the aunt inherits the other half of the estate. However, the two children do not inherit.

Legal succession at a glance – Who inherits if there is no will?

Adopted children – inheritance claims against biological and adoptive parents

Adoption confers legal kinship on a child. If the child is a minor at the time of adoption, it acquires the legal status of a joint child of both spouses and thus belongs to the heirs of the first order. Thus, not only the adopted child inherits from the parents, but also vice versa. With the adoption, however, the child loses all claim, rights and duty to the blood relatives and is therefore no longer entitled to inherit from the natural parents. This is regulated differently in the case of adopted children who have reached the age of majority. The kinship relations to the bodily parents do not expire and thus an adopted child of full age can be entitled to inherit from up to four inheritance parts, the bodily and the adoptive parents. However, there is no legal right to inherit from the relatives of the adoptive parents.

Read more about inheriting debt!

All questions about inheritance without a will

Inheriting without a will can often lead to disputes within the family, as the last will and testament of the deceased is not made clear. In order to clarify all questions in such a case and to avoid disputes, the experts of Lukinski have answered all important questions around the topic of inheritance without a will.

What is the intestate succession?

If no will has been left or if it has been found to be invalid, the legal succession applies. This is based on the degree of kinship and the marital property status of the testator. The relatives are divided into three orders for this purpose.

When does the spouse inherit?

In principle, the spouse always inherits. However, how much he inherits depends on the remaining relatives of the deceased. If there are no relatives, the spouse inherits the entire estate alone.

When does the state inherit?

The state inherits if there are no relatives or other dependents, such as the spouse or partner. This is stipulated in the Fiskalerbrecht according to § 1936 BGB.

When do siblings of the deceased inherit?

Siblings of the deceased inherit if there are no first-order heirs, i.e. children or grandchildren of the deceased. These belong to the second order and only inherit if at least one parent has already died, otherwise the parents of the deceased inherit the estate.

Can half siblings inherit?

Half-siblings are on the same level as full siblings according to the legal order of succession. They both belong to the second order and inherit if neither children, grandchildren or at least one parent of the deceased is still alive.

An overview of the contributions to public utilities: The developer’s obligation to pay for public facilities and connections

• Are levied by the respective municipalities
• Cover for the construction of roads, parking areas, paths, etc.
• Connections for electricity, gas, water and sewerage are included in the development costs.
• Significant cost factor for the building owner

Back to the wiki: Real Estate

Landlord certificate – What you should know

Since 1 November 2015, there has been a uniform registration law for Germany. Since then, the landlord is obliged to issue such a landlord certificate when moving in and out. Due to a reform of 01.11.2016, the landlord certificate is no longer required when moving out, but only when moving into an apartment or a house. The reason for this reform is that a landlord certificate is associated with a high administrative burden. A deregistration is an exception to this.

What is the tenant obliged to do?

The Federal Registration Act obliges a resident to file a change of residence with the Residents’ Registration Office within two weeks. However, a move-out is not always necessarily connected with a new move-in. There are also cases in which only a deregistration must take place, for which a landlord certificate is nevertheless necessary. A deregistration is always required if the tenant wants to move abroad. One such case is an exception, namely the landlord certificate must also be provided when moving out of a property. Since this certificate must also be available at the Residents’ Registration Office within two weeks, the landlord is obliged to issue it within two weeks.

What is a housing provider confirmation?

Often terms occur in everyday life, with which one can not particularly do much. Are you wondering what the term landlord confirmation is all about? Are you also interested in the difference between a landlord’s certificate and a landlord’s confirmation? It is a synonym. A landlord’s certificate is the same as a landlord’s certificate. It is issued by the landlord and presented to the residents’ registration office when a tenant moves in.

Registration law – re-registration

What information must the landlord certificate contain?

If you or your landlord do not know what information must be included in a landlord’s certificate for it to be valid, be sure to follow this list:

• Name and address of the landlord
• Information whether it is a move-in or move-out
• Date of moving in or out
• Address of the apartment
• Names of persons subject to the reporting obligation

If this information is included in your landlord certificate, it is valid and can be used for the necessary purposes. It does not matter whether it is in written or electronic form. The landlord certificate must be delivered to the relevant registration office, this can either be done by the tenant or by the landlord. There is no standard form that must be available.

If your landlord decides to send an electronic certificate to the Einwohnermeldeamt, the latter will receive an allocation mark which you, as the tenant, must present when you re-register.

Exceptions

Many people assume that this obligation does not apply to a second home or a shared home. However, this is a mistake. The landlord certificates must be submitted to the residents’ registration office by the same deadlines.

Possible penalties: fines

Anyone who fails to inform the residents’ registration office in good time about a move-in must reckon with a fine of 1,000 euros. If the information was not complete due to the lack of a landlord certificate, the landlord is liable for the penalty, as he is obliged to issue it in time.

There are also so-called bogus registrations. If landlords issue certificates that do not correspond to the truth, they can expect a fine of up to 50,000 euros.