Baukindergeld: This is how the new housing subsidy works

How can the service be requested?

About the KfW Bank. "The subsidy is meant to make it easier for families with children and single parents to finance their own house or flat," said the banking group in the hands of the state. There are 12,000 euros per child, paid out in ten annual installments of 1,200 euros each. All citizens with at least one child who have signed a purchase agreement since January 2018 or who have received a building permit can submit an application. The subsidy is available for contracts or building permits that are ready by the end of 2020.

Why the time limit?

This should keep the costs for the state under control. Households expect an amount of up to ten billion euros until the final payments have expired. But if there is a strong demand, it can be more. Initially Minister of Finance Olaf Scholz (SPD) planned a ceiling on 120 square meters of living space, as a compromise there was then the time limit.

What are the requirements?

A couple with one child can have a family income of a maximum of 90,000 euros per year, a maximum of 105,000 euros for two children, 120,000 euros for three children. The children must live in the house or apartment and the family can not have any other property. Applications can be submitted online to KfW if the purchase or building documents are available. The application must be made with a purchase, but the best pass after collection.

Why do critics talk about waste?

"This will no longer create an affordable home," says the green spokesperson for housing policy in the Bundestag, Chris Kühn. "On the contrary, it will lead to huge windfalls and fuel prices." The Baukindergeld subsidizes through the promotion incentive, the conversion of more rental apartments in apartments, but will continue to rise in price. In addition, taxpayers who still can not pay an apartment pay the program.
FDP leader Christian Lindner advocates: cancellation of child benefit and instead a tax deduction for the transfer tax. Because at a rate of up to 6.5 percent, the federal states automatically collect more and more at rising real estate prices – and families have to give up most construction costs for this.

What else is planned?

A tax bonus must ensure that private investors create more affordable rental properties. In addition to the normal depreciation for four years, the federal government wants to allow a special depreciation of five percent per year. The federal government already decides on Wednesday. The bonus applies to all building permits between 31 August 2018 and the end of 2021. The apartment must be rented for at least ten years and the purchase and construction costs may not exceed € 3000 per square meter. This is intended to prevent even investors in the higher segment from collecting tax bonuses.

What are the next steps?

On September 21 there is a residential summit with Chancellor Angela Merkel. The aim of the Union and the SPD is that more money for social housing will be used to build up to 1.5 million new homes to reduce housing and rental costs through a wider range. As a further measure, the SPD wants to largely freeze the rents for five years, since new apartments have to be built first. SPD leader Andrea Nahles speaks of the "new social issue".

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