New home ownership subsidy planned from early summer 2023

Would you like to buy a property, but your financial resources are limited? Here's some good news: in June of this year, the Baukindergeld will expire and be replaced by a new subsidy program that will continue to support the purchase of residential property.

Building Minister Klara Geywitz has announced that several million euros will be made available annually for a federal program to promote home ownership. This should make it easier for prospective buyers to realize their dream of owning their own four walls - especially in times of high inflation, increased interest rates and stricter bank lending criteria.

Who will receive the new funding?

Families with an annual income of up to 60,000 euros can take advantage of the new subsidy program. The amount of funding will be increased by 10,000 euros per child. The federal government is providing a total of 350 million euros annually for this program. To take advantage of the funding, families must submit an application to the KfW Bank and can then receive the low-interest loan from the state development bank.

Is there any criticism?

The German Home Ownership Association (VWE) calls the new subsidy a "drop in the ocean". This applies to families who cannot afford a house without the subsidy. This is because the subsidy is only applicable to energy-efficient new builds at a high price level. Financially disadvantaged families cannot fully cover their costs with the subsidy amount.

What other subsidies are available?

Buyers and builders can apply for further subsidies. For example, the federal subsidy for efficient buildings (BEG) provides relief for owners who want to renovate or build energy-efficient buildings. But even for this subsidy there are in 2023 Innovations. In the area of climate neutrality, the new climate neutrality Building Energy Act (GEG). In order not to lose the overview here, seek advice from an expert such as a broker.

The expert knows for you

If you are eligible for a subsidy, it is best to contact an estate agent in your region and work with them to find a suitable property. Because even if the subsidy is intended to make financing easier, you should keep an eye on your budget right from the start. Above all, you should also factor in the ancillary purchase costs. Your estate agent can explain what these are. These include the costs of the mandatory requirements of the GEG. If you need an energy consultant, you can also ask your estate agent about this - together you can look for a regional expert. Or they may already have one on their contact list. Your estate agent will also know how the measures can affect the value of a property.

Do you have questions about buying a property and what subsidies are available? Get in touch with us! We will be happy to advise you - individually and personally.

Notes

For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where this is necessary for the statement.

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 individual case.

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