Berlin DESPERATE To Stop Housing Bubble! - Implements Insane New Regulations!
In this video, I talk with author and economic analyst John Sneisen @TheEconomicTruth about the crazy new regulations Berlin is implementing in order to allegedly mitigate the very present and real risk of the burst of their housing bubble.
People are getting increasingly concerned by the massive rate of growth in the value of homes in Berlin. This has lead to the Berlin municipal government banning the resale of homes after renovation in many more districts. So basically, if you own a home in Berlin and you fix/renovate anything, you cannot sell your home. This will result in slums and dilapidation.
If you wish to sell in this market, it cannot be privately, but government may decide to make the purchase.
In fact, the government HAS been buying up vast numbers of properties which is something that should concern everyone. In the district of Friedrichshain-Kreuzberg, a representative for the district has admitted to the purchase of over one thousand apartments since the beginning of 2017! Now that they own 25% of the homes in the district, they claim they believe they should own about half. Surely there can't be some nefarious plan involved there...
Housing prices in Berlin have risen 20% in the last year alone. Rental costs have gone up 120% since 2004!
Banks, like 2007, are once again getting heavily involved in collateralized debt obligations, mortgage backed securities, credit default swaps skyrocketing, reverse mortgages fooling the gullible public once more. There are bubbles throughout the world that are shocking but people don't seem to care. They repeat history just over a decade after the last massive housing bubble burst.
Investor confidence is high, all speculation, low fundamental value. Still, people are glassy eyed and ready to throw millions at a market that is peaking.
Even Robert Kiyosaki who we recently interviewed told us that he is selling real estate which he doesn't do often. This says a LOT!
We better start paying attention folks, because the solutions come down to us. Our ability to sustain ourselves, be independent, be educated and decentralize ourselves. Our responsibility to our finances.
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