Wait with the building application because of the child construction allowance

Hello, I would first look at what the SPD members say and wait for the coalition agreement if it ever comes.

You do have time.

But I would bet that the standby interest will be lower than the possible (construction) child benefit.

The e-bonus also came very quickly. I believe it was discussed at the end of Q1/2016, decided at the end of April, and could be applied for retroactively at the end of May 2016.

The Baukindergeld would just be a nice bonus, which I don't think anyone expected with the low interest rates.

Attached is the current passage from today’s "leaked" coalition agreement draft.

We will financially support property ownership formation for families. To this end, we will introduce a construction child allowance as a subsidy from the federal budget of 1,200 euros per child per year for the first purchase of new or existing buildings, which will be paid over a period of ten years. The construction child allowance will be granted nationwide up to an income limit of 75,000 euros taxable household income per year plus 15,000 euros per child.

So almost even less information than what has already been reported in the press over the past few days. One will probably have to wait for the concrete draft law (if it comes that far). The fact that it is not mentioned in the July 2017 coalition agreement already says a lot. Retrospectively, I wouldn’t expect anything more there.

By the way, this follows next:

We want to introduce a KfW guarantee program that secures a portion of the purchase price or construction costs of owner-occupied residential property. This can reduce the equity required for acquisition. The guarantee is to be valid for 20 years.

This should reduce financing costs, as lower lending limits can be achieved through the guarantee.

And finally, the topic of real estate transfer tax

We want to change the system of real estate transfer tax so that the states are enabled to exempt the initial real estate acquisition from the real estate transfer tax or to provide corresponding allowances. Effects on the overall system and the financial equalization among the states are to be reviewed and avoided if possible.

The paragraph is subject to SPD’s review reservation.

So the states are to be free to decide whether they want to forgo a major source of revenue. I see.

KfW for burglary prevention is to be extended to new buildings.

The successful KfW funding program “Prevention through Burglary Protection” will also be continued. Owners, tenants and private small landlords, including those of multi-family houses, shall benefit from the funding. In addition, we will extend the funding of crime prevention measures to new construction.

Baukindergeld supports the upper middle class. Those lower down would have needed it more.

Well great. The new grand coalition only does client politics for lower incomes. It started with the regulations regarding the solidarity surcharge.

Interesting what counts as a lower income Are people earning less than €105,000 considered low earners?
Although we ourselves don’t earn badly, I would find it desirable if lower incomes were relieved. But I don’t see that with the Baukindergeld, quite the opposite. It only benefits those who can already afford a house.

The thing about July 2017 would be funny - we got the approval in June

The bad thing is that these great grants are often tied to groups who also cannot / should not afford a house even with the funding.

When I still worked in the public sector (as an IT specialist), with my really low salary, I once looked at the funding conditions of the then L-Bank Baden-Württemberg. Even my salary was already above the funding limit. There was an interesting repayment subsidy per child... Well...