
New subsidies for buying real estate
Many property seekers are unsettled by the rise in interest rates. Financing rates are currently at least 3.5 percent, and in some cases even as high as 4.5 percent. However, this is still less than in the early 1970s or early 1980s, when interest rates were just under 9 percent.
In the past, however, either real estate prices were high and interest rates low, or prices were low and interest rates high. "Now we have high real estate prices and fairly high interest rates," said financing expert Michael Keller from financial services provider Dr. Klein to the Tagesspiegel newspaper. However, new subsidy programs are intended to help people fulfill their dream of owning their own home.
New construction for families
Since June 1, 2023, the Kreditanstalt für Wiederaufbau (KfW) has been offering the "Home Ownership for Families" program. It is intended to make it easier for families with an income of up to €60,000 with one child, plus €10,000 for each additional child under the age of 18, to finance a newly built home. Applicants can receive a subsidized loan with favorable interest rates of up to €240,000.
"Climate-friendly new construction"
KfW also offers the "Climate-friendly new construction" subsidy program. The aim is to promote new construction projects that meet the KfW Efficiency House 40 standard. Builders can take out loans at significantly lower interest rates than those available on the market. However, the maximum loan amount is only €100,000.
If the new building achieves sustainability certification, the subsidy loan can also be increased to up to €150,000. Additional costs such as specialist planning, construction supervision by an energy efficiency expert, and certification are also eligible for funding.
Funding for existing properties
KfW and the Federal Office for Economic Affairs and Export Control (BAFA) provide funding for the modernization or renovation of existing properties. Here, buyers can usually choose between a grant or a low-interest loan. There are also additional subsidy programs in most federal states.
Consult a financing expert to find out which subsidy programs are available to you. The expert will also help you develop a financing strategy that is right for you.
Are you looking for support in financing a property? Contact us. We will be happy to advise you and refer you to an independent financial advisor.
Notes
For reasons of readability, the generic masculine form is used in this text. Female and other gender identities are expressly included where necessary for the meaning of the text.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.
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