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.
The German government is therefore considering reducing the ancillary purchase costs. Incidental purchase costs consist of land transfer tax, notary fees and, if applicable, broker commission, and cannot be financed through a normal property loan. A bill is currently being drafted in the Federal Ministry of Justice for a so-called buyer principle that would exempt buyers from brokerage commissions. The draft is expected to be drafted in the first quarter of this year, but whether it will actually become law is not certain.
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Rostock. "2018 has far exceeded our expectations. At the end of the year, construction companies – also thanks to comparatively good weather conditions – once again noticeably increased the number of revolutions and further boosted sales." With these words, Dieter Babiel, Chief Executive of the German Construction Industry Association, commented on the economic indicators for the construction industry published in the latest edition of Current Figures.
According to the report, companies in the main construction industry would have generated construction-related sales of 127 billion in 2018. Euros, which is 11.3% more than in 2017, he said. The HDB had originally forecast a nominal increase of 6%. Despite stronger price increases in 2018, to which cost increases for construction products and the significant collective wage increase would have contributed significantly, an increase of 5.4% in real terms would still have remained.
"To handle the additional production, construction companies have increased their workforce by 25.000 to 837.000 employees increased in the annual average 2018. This means that since the low point in 2009, the industry has increased more than 130.000 new jobs created," said Babiel, describing the labor market situation in construction.
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Rostock. Real estate market booming, home prices continue to rise. This is shown in a recent report by the Council of Real Estate Experts. "One beneficiary of the expensive purchase price is the federal. Because higher real estate prices mean more revenue via the land transfer tax," says Florian Becker, managing director of the Bauherren-Schutzbund e.V. (BSB).The policy would have to advance its formulated project to promote housing construction now more efficiently. Becker recommends that consumers pay particular attention to hidden costs.
8.2 percent more than last year, the average purchase of a used property costs, report says. To ensure that unexpected costs do not add to the burden of financing, homebuyers should pay close attention. "If you buy a pig in a poke, you run the risk of considerable additional costs after the purchase," warns Becker. For example a modernization backlog could be paid already shortly after the purchase expensively. An independent expert helps with the assessment of the building substance. In any case, buyers should not allow themselves to be put under pressure. Whoever hastily concludes a purchase contract without checking, often runs blindly into a cost trap, which can burden him for the rest of his life."