Cheap Housing and a Good Economy

[Zanza]

A shame the article glosses over the federal payment to municipalities and the housing consumption tax.

There is a steep one time tax when you buy real estate, e.g. 5% of the net price where I live. But ownership itself has no ongoing consumption tax although you have to pay property tax (which isn't high).

[Zanza]

@Jacob: I liked "23 things they don't tell you about capitalism".

Edit: Would be interesting what Minsky thinks of him.

[The Minsky Moment]

Heard of him but haven't read the books.

On the OP it's silly to compare Berlin to NY or London.  As a city of culture sure but not as a business/financial center. 

[Ed Anger]

But it has OKW HQ!

[Josquius]

I thought Germany had a big culture of renting rather than buying?

[Admiral Yi]

Someone didn't read the assignment.

[viper37]

Do you have a source for less output?

http://ec.europa.eu/eurostat/statistics-explained/index.php/Agricultural_census_in_Germany

Less people on farms, smallest part of the economy for EU countries, generally less output, though it depends on what.
And imports seem on the rise:
https://tradingeconomics.com/germany/imports-of-agricultural-products

[The Larch]

Agricultural output hasn't been an issue in Europe for ages. I mean, farmers are sometimes paid NOT to grow stuff in order to keep prices afloat. Is stuff still imported? Of course, as most probably it'll be cheaper to bring it over from other countries. And even taking all that into account, Germany is still the 2nd main producer of cereals in the EU after France.



Wheat accounts for almost 50% of the total cereal production in the EU, barley and maize are a tad less than 20% each.

Moreover, agricultural land is not where housing construction is needed, so I can't see how one could affect the other.

[Malthus]

A homeowner would try to keep the prices high. You're the enemy

Actually - no. 

A homeowner wishing to fund his or her retirement by selling the house and "downsizing" certainly does.

A homeowner intending to stay in the home for a long time wants prices low. Because your property tax is tied to house values.

A homeowner who wants to move into a more expensive home wants prices low also - the difference between the value of what he or she owns, and what he or she wants to buy, will then be smaller. 

[HVC]

you can't trick me with your lawyery ways uber-canuck

[Ed Anger]

Taxation is theft

[derspiess]

Taxation is theft

You're doing it wrong.  Watch this:

Taxation is theft.

[crazy canuck]

A homeowner intending to stay in the home for a long time wants prices low. Because your property tax is tied to house values.

That is a popular misconception.  Property taxes are based on a mill rate.  If all property value increased at the same rate all property taxes would remain the same.  Even though Vancouver property values have increased rapidly, some people actually experienced a decrease in property tax because their properties did not increase as much as others.

[Ed Anger]

Spicy:

What? I need to say it with a lisp? Mention helicopter rides?

[Malthus]

A homeowner intending to stay in the home for a long time wants prices low. Because your property tax is tied to house values.

That is a popular misconception.  Property taxes are based on a mill rate.  If all property value increased at the same rate all property taxes would remain the same.  Even though Vancouver property values have increased rapidly, some people actually experienced a decrease in property tax because their properties did not increase as much as others.

Then homeowners want their particular property to be low value.