Rostock. The topic of home ownership is now being discussed again in the political arena, after having been virtually absent from the public debate for over a decade since the end of the home ownership subsidy in 2006. With the building child money the Federal Government brought a new promotion on the way, since 18. September 2018 it can be applied for. The Baukindergeld provides an equity subsidy for families with children. For each child, the state contributes 1.200 euros, which can be used to repay the real estate loan. The subsidy only applies to the purchase or construction of owner-occupied residential property – and it is only granted this year and next year. This means that if you want to be approved for the Baukindergeld, the purchase contract or building permit must not be dated later than 31. December 2020.
The grand coalition has also planned, but not yet decided on, a KfW guarantee program. "The guarantee program would be a great help for many home buyers," says Stonehedge CEO Nedeljko Prodanovic, "because if KfW were to guarantee the buyer, he would have to put up less equity capital when buying a home."The necessary equity ratio is a hurdle for most potential home buyers. While real estate financing would in principle be affordable for many households due to the favorable interest rates, not all manage to save enough equity capital, however. A rule of thumb says that you should be able to raise 20 percent of the purchase price yourself – in the case of an apartment for 250.000 euros, that's 50 percent.000 euros.