July, 2013
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Market Dialectic
By Dr. Rainer Zitelmann on 2013/07/2300The pace of rental growth is slowing because construction has picked up. That is the way a market economy works. -
A Comeback for Tax Breaks?
By Dr. Rainer Zitelmann on 2013/07/10However, I expect that the tax orientation, especially in the area of residential real estate... will come back in a few years' time, possibly even on a greater scale... But if the legislature curbs the market economy's play of supply and demand through overregulation, or indeed deactivates it in major areas, that is, if rents are kept artificially low and construction is made costlier, yields will drop below acceptable levels and will no longer be able to compete with alternative investment options.