Baukindergeld - Interpretation of the new funding guidelines

No, it is not!!! At least not in this way. If you want to prevent children from buying their parents' houses for 50,000 euros or less in order to claim the subsidy, a minimum purchase price of about 100,000 euros should be set much better. I have to pay my parents almost 200,000 euros and now I have the short end of the stick!

Well, you don't have to... first, there is the real estate transfer tax, second, parents are allowed to sell cheaper within the family. These are privileges too. Basically, I wish the construction child benefit to everyone. Only unfortunately there were too many free riders who unfortunately circumvented the subsidy. To the detriment of everyone.

We are also affected... we even have 5 children.

We have been living in the house for 9 years, which my parents acquired, as they got better conditions back then (unlike me as a career starter). We basically paid off the loan ourselves through the rent.

It was intended anyway to buy the property at the remaining loan amount after the speculation period expires next year (because possibly partial gift, since below market value would not matter).

We would of course have gratefully accepted the "Baukindergeld."

In this respect, I can understand that many see this as "freeloading" or something like that.

But if you consider what is taken advantage of legally outside of the "Baukindergeld."

And nobody can tell me that this "constellation" was only noticed now with an "oops."

In my opinion, it could have been excluded back then.

One sentence would have sufficed: Sale between relatives is excluded. Period.

They didn’t do that, so it was a completely normal funding possibility. Some may find it unfair, but it was like that.

Now they have "suddenly noticed" and closed the loophole.

But again inconsistent. On the one hand, the wording is embarrassing times ten for any lawyer. "Acquisition between relatives" also means acquisition by the daughter-in-law... which is clear.

You get told on the phone at the KfW that the daughter-in-law is related to the husband...

Instead of "between" a "from" would have been clear.

What goes even further: acquisition of 2nd degree relatives.

So brother, uncle, etc.

We are also considering whether a short-term "intermediate heir" of my brother makes sense.

It’s a simple cost/benefit calculation.

With one or two children it probably hardly pays off due to double notary costs and others.

With 4 or 5 children it probably does.

Then the question is whether the KfW says that is an impermissible circumvention transaction.

In my opinion, the funding requirements are fulfilled, so they probably couldn’t come up with that.

It probably depends on the caseworker. One will approve it, another won’t.

In my opinion, and I say this as someone affected, they should either fund everything or be consistent and close the "loophole" for acquisition from relatives.

And the argument: The scoundrels who get funding even though they will inherit / get it as a gift anyway. That’s not necessarily the case.

And if so, then every acquisition from relatives, regardless of degree, should be excluded.

Why should acquisition from the uncle, who has no children and no family, so where you would also inherit, be funded? Or the brother’s?

I think there will be another clarification in the next weeks/months and the funding requirements will be even stricter.

What only bothers me: if so, then everywhere equally. For the Bavarian Baukindergeld, acquisition by the daughter-in-law is accepted (not for relatives in the direct line).

That means you would get the funding. But since you need the item "federal decision" for that, it doesn’t work after all.

Just to briefly add:

For 5 children in Bavaria:
- 60,000,- federal Baukindergeld
- 15,000,- Baukindergeld Bavaria
- 10,000,- home ownership allowance Bavaria

That makes 85,000,-. I see the costs for a short-term interim acquisition by a third party as "easily amortized."

I also see no problem with speculation tax, as the market value is unlikely to increase significantly in such a short time.

Does the KfW have to exclude funding for an "interim acquisition" of up to ??6 months??? Or if there is not at least 2 years between the further transfers?

But there may be no need for that.

How many cases are there with families with 3 plus children who do not yet live in their own property?

Such large families who have only been renting until then are probably quite rare.

I will inquire about this with the KfW.

A question as to whether a short-term interim acquisition is "harmful to funding" must also, in my opinion, be answered by them.

Why not? They have to make statements about eligibility based on facts.

They can hardly say: "We won’t tell you."

If they say it is not eligible, they should please state the reason.

In Bavaria, it is quite simple; everything is regulated in a "funding guideline." What is stated there applies. If something is not mentioned, no one can say: But we do it differently.

At the KfW, eligibility is regulated in an "information sheet," which can change at the discretion of the day....I’m just saying "acquisition between relatives"....and the woman is related to the husband in a straight line "uh-oh."

And according to the KfW, the current regulations are only a clarification/specification of the funding guidelines. If it is only a "specification," why are applications before 17.05. still approved? Those are then the real beneficiaries? They could have been told back then: No, although it is not explicitly stated, "acquisition from relatives" is not funded.

If funding eligibility is then confirmed, families with 1-2 children might again "cry out" that this is unfair because their costs probably exceed the funding.

Honestly, as was probably also the case with Rudlof86, it was just luck and coincidence that one would get the Baukindergeld. One simply fell into a certain pattern...envious of that?

And as with Rudlof86, it is not like you just "receive" a house as a gift...we have to finance it just like everyone else.

But where does it end with being "unfair" and the suspicion/accusation that benefits are fraudulently obtained?

I can also say quite bluntly:

In my opinion, families whose children are born or conceived shortly before the funding period should be excluded from the funding. Here one can also assume they only had a child to obtain the Baukindergeld.

You will not receive a legally binding written statement from KfW on this. Period

And why not?

There is no legal entitlement to the funding. Clearly, this is frustrating for the people who fall through the cracks. As a German citizen whose tax money is involved here, I am just as glad that loopholes that enable abuse are being closed. You can never please everyone. I am also glad that the funding program has been regulated and implemented in a largely pragmatic way, instead of, typically German, inventing a rule for every special case.