How expensive will the dream of home ownership
For many people, the dream of owning their own home is a lifelong goal and an integral part of private wealth accumulation. Hardly any other investment symbolizes security, stability and the realization of personal dreams as much as a home of one’s own. Often, the path to owning a home involves hardships, challenges and personal risk, so it’s no surprise that home ownership is one of the most emotional topics for Germans.
The advantages of owning one’s own property have always been clear, especially for medium-sized businesses. The condominium or one’s own house is considered the owner’s most important provision for old age. Finally not having to pay rent or pay off a loan to have more of your own retirement. This was and is the declared goal of entire generations. Financial stability and independence are considered the most important arguments in the decision to invest in their own property.
But fear is running rampant among property owners. Key words such as climate targets, the EU Energy Efficiency Directive and the highly polarizing Building Energy Act are fueling concerns that expensive investments in the energy refurbishment of one’s own home will mean financial ruin for many property owners in the future.
Whether the dream of owning your own home will still pay off in the future and what the consequences of current legislation will be, also with regard to supposed forced renovations, we take a look below with a special focus on the EU Energy Efficiency Directive.
What is the EU Energy Efficiency Directive
The EED, legitimacy for forced redevelopment?
With the introduction of the EU Energy Efficiency Directive in December 2012, the EU Parliament laid the foundation for a large number of climate law and climate policy innovations in Europe. The targets set, which aim to achieve a 55% reduction in greenhouse gases by 2030, come with significant implications for property owners across Europe.
This directive and all amendments based on it are specifically aimed at reducing the energy consumption of buildings and promoting the supposed transition to more environmentally friendly and sustainable energy systems. However, this is not in itself a legitimization to have forced renovations carried out.
Nevertheless, the implementation of the directive is accompanied by new laws and requirements that will make investments in new technologies and construction measures inevitable. These costs, unforeseeable to date for the property owner, can indeed be experienced as coercive, especially because the consequences can be existential.
The consequences of the EED for property owners
How we help you secure your assets
- Tax law advice and tax representation in Germany
- Clarification of the current legal situation on the subject of redevelopment
- Advice on assets in Germany and the EU
- Advice on asset allocation and tax optimisation
- Accounting and asset management
- Holistic organization of an asset management
- Advice on the topic of inheritance in Germany
Articles on forced reorganization & asset protection:
- Professional asset protection – asset protection for medium-sized companies in practice
- Risk diversification & asset protection
- Expensive replacement of fireplaces is often useless
- Small or large matrimonial property regime swing for asset protection – absolutely legal design – or tax evasion deluxe?
- Reconstruction of junk real estate: New ruling of the European Court of Justice allows for reversal of the transaction
Our office in Munich
You will find our office at Fasolt-Strasse 7 in Munich, very close to Schloss Nymphenburg. Our team consists of highly motivated attorneys who are available for all the needs of our clients. In special cases, our law firm cooperates with selected experts to represent your interests in the best possible way.
About the author
PhD, MBA, MM
Dr. Johannes Fiala has been working for more than 25 years as a lawyer and attorney with his own law firm in Munich. He is intensively involved in real estate, financial law, tax and insurance law. The numerous stages of his professional career enable him to provide his clients with comprehensive advice and to act as a lawyer in the event of disputes.
»More about Dr. Johannes Fiala
On these pages, Dr. Fiala provides information on current legal and economic topics as well as on current political changes that are of social and/or corporate relevance.
Arrange your personal appointment with us.
You are already receiving legal advice and would like a second opinion? In this case please contact Dr. Fiala directly via the following link.
(The first phone call is a free get-to-know-you conversation; without consulting. You will learn what we can do for you & what we need from you in terms of information, documents for a qualified consultation.)