When buying real estate, many people cash in: Realtors, notaries and the state. These additional costs prevent many from buying. But it can also be cheaper.

What should it cost?  New buildings in Berlin Karlshorst.

HHere almost everyone complains about the high housing costs. Sometimes louder, sometimes less loud. And when the attack on inflated prices is launched, politicians march ahead and scourge everyone for rising property prices. Just not yourself. Parliamentarians, prime ministers and mayors like to leave out their own role. The state makes a lot of money from the rising real estate prices in the big cities and ensures that housing costs continue to rise. Most federal states have increased the real estate transfer tax significantly within ten years. Together with the broker’s commission, notary fees and the entry in the land register, the property buyer has to add up to 15 percent of the purchase price to ancillary costs.

That keeps many away from owning their own home. Not even every second person owns their own home – and despite good financing conditions, there are at most more in higher income groups. “We are not seeing an increasing rate of ownership, even though the interest rates are so low,” says Ralph Henger, economist at the employer-related Institute of the German Economy (IW) in Cologne. For Henger, this has to do with the high ancillary costs in Germany and their major role in buying real estate.