Number of the month for January: 72 percent
When you inherit a property, the question of how to use it always arises. Should you sell it, rent it out, or move in yourself? In Germany, the majority opt for the latter two. According to a study by the German Institute for Retirement Provision, 72 percent either live in their inherited property themselves or rent it out, thus retaining ownership. 28 percent, however, choose to sell.
Nationwide, approximately 430,000 properties are passed on to heirs each year through inheritance or gifts. Also of interest in this context is a comparison between the number of annual sales and the number of properties transferred through inheritance or gifts. Of these 430,000 properties, 47 percent are single-family homes and 26 percent are two-family homes. Condominiums, multi-family homes, and other real estate make up the remainder. On average, 1.6 properties are inherited per estate.
Around 310,000 single-family and two-family homes are sold annually, becoming the property of heirs or groups of heirs. Annual sales, however, are lower, at 277,000 (for 2018).
The conclusion to be drawn from this is that the majority of homeowners in Germany acquire their own home through inheritance, rather than through new construction or purchase. And the majority, 72 percent, actually live in the inherited property themselves.
Further information about the study can be found here:
Notes
For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.
Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.
Photo: © PellissierJP/Pixabay.com
About the author
Harry Mohr
Real estate agent (Chamber of Industry and Commerce)Harry Mohr, author of this article
