Let's Get Real About Affordable Housing: Hubertz's Plans for State Guarantees
Minister Hubertz, in his capacity as Building Federal Minister, will offer government guarantees to facilitate the construction of new residential units. - Government assurance sought by Construction Minister Hubertz for new housing projects
Listen up, peeps! Hubertz, our new Minister of Housing, Urban Development, and Building, is cookin' up something slick to tackle Germany's notorious housing woes. She's aimin' to shake things up with state guarantees for new apartment construction, y'hear?
Here's the deal: Many companies in the housing sector are runnin' low on cash, and they gotta fork over a hefty 3-4% interest for real estate loans. Hubertz reckons it's time for the government to step in and cover some risks, by offerin' guarantees or pumpin' up equity through an investment fund. This, she says, could straight-upSLAM interest rates and make construction a whole lot cheaper.
Now, Hubertz's got her eye on a specific type of construction she's callin' 'building type E.' This baby's supposed to be both 'simple' and 'experimental,' so it should be easier to branch out from the status quo. Sounds like things are gonna get spicy in the housing market, and Hubertz seems pretty pumped to team up with the new Minister of Justice, Stefanie Hubig (SPD), to make it happen.
Thing is, as it stands, the market's barely breakin' even with apartments that go for less than 15€ cold rent per square meter due to high costs. But, in true Hubertz fashion, she's not backing down. She's aimin' to bring that cost down to 15€ or less in new construction--a goal that's already in the coalition agreement, if you can believe it.
Hubertz ain't shy about cheerin' up the econony either. She calls the housing industry a "huge economic driver," Tellin' us that around half of all investments are construction investments, which can serve as an "economic locomotive" in a weakening economy.
So, what's all this mean, you ask? Well, it's about time we shake off those high costs and bring affordable housing to the people. Watch this space, because Hubertz ain't playin' around!
Verena HubertzGuaranteeSPDZeit Online
P.S. Don't worry, we've done a little diggin' and here's what we found:
- Makin' It Cheaper: State guarantees could reduce costs for developers, potentially leading to more affordable housing options.
- Stimulatin' the Economy: By incentivizing new construction, the government could stimulate economic growth and create jobs.
- Balancin' the Market: Increasing the supply of new apartments could improve affordability, stabilize prices, and make housing more accessible. Keep your fingers crossed and stay tuned, folks! This could be a game changer.
The Commission, in its role as a consultative body, has also been approached regarding the potential impact of the draft directive on the finance sector, given the implications of the directive on businesses involved in the protection of workers from ionizing radiation in the housing and construction industry.
With Hubertz's plans focusing on state guarantees to lower interest rates and make construction more affordable, it opens up opportunities for the finance sector to provide financing solutions to housing and construction businesses, potentially leading to growth and job creation.
