Germany tries to support the real estate sector with the usual uncertainty
While in Italy we are discussing how to dispose of the 110% tax credits , Germany realizes the importance of the real estate sector for the economy and, faced with the rise in interest rates, decides to intervene actively, even if with partial measurements.
Due to the current crisis in the construction sector, Federal Construction Minister Klara Geywitz (SPD) has announced plans to increase construction allowances for families. Geywitz told the Neue Osnabrücker Zeitung (NOZ) that they are working diligently to improve access to real estate for young families. He referred to an existing but little-used program aimed at families with an annual income of up to 60,000 euros, saying that the income limit should be increased and that loan amounts could be increased.
It is important to note that discussions and votes on this issue are still ongoing and nothing definitive has been decided yet. However, it is a proposal that would involve a “significant volume” of financing, which must be guaranteed in a stable way. For this year, 350 million euros are expected to be available for these interest subsidies, a figure that would not be impressive and could therefore increase significantly.
Geywitz expressed confidence in the optimization of conditions within a few weeks, but stressed the need for caution regarding subsidies, as these could generate considerable costs for taxpayers.
The minister also announced the extension of funding for dormitories for interns and students until 2025, with the aim of investing a further billion euros. Furthermore, 150 million euros have been allocated for the renovation of housing suitable for the needs related to the aging population. Geywitz also mentioned the new depreciation options that will take effect on October 1st.
Finally, the SPD politician called on the federal Länder to support the proposal of Federal Finance Minister Christian Lindner (FDP) to eliminate the property transfer tax when purchasing a first home, regardless of family income. He underlined the importance of the federal states joining this initiative, considering the current crisis situation in the construction industry, stressing that all levels of government must contribute and give up additional tax revenues.
The overall amount of aid could be a few billion, interesting, but not enough to revive the real estate market whose prices are significantly decreasing:
Furthermore, these funds seem destined to flow into a plurality of uncoordinated trickles and trickles that risk being costly and ineffective. It seems that the government is struggling to find a balance between social and expansionary pressures and the usual German austerity. Precisely this wait-and-see attitude is the biggest problem for Germany in these confusing moments.
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The article Germany tries to support the real estate sector with the usual uncertainty comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-germania-cerca-di-sostenere-il-settore-immobiliare-con-la-solita-incertezza/ on Sat, 16 Sep 2023 09:00:14 +0000.