What home buyers need to know

What home buyers need to know

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What homebuyers need to know-2

Rostock. The topic of home ownership is now being discussed again in politics, after having been virtually absent from the public debate for more than a decade since the end of the homeowner's allowance in 2006. The federal government has launched a new subsidy, the baukindergeld, since 18. September 2018 it can be applied for. The baukindergeld provides an equity subsidy for families with children. Per child, the government contributes 1.200 euros can be used to repay the real estate loan. The subsidy only applies to the purchase or construction of owner-occupied housing – and it will only be granted this year and next year. In other words, if you want to receive the building subsidy, the purchase contract or the building permit must not be dated later than 31 december 2009. 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 homebuyers," says stonehedge head nedeljko prodanovic, "because if the kfw were to guarantee the buyer, he would have to put up less equity when buying a home."The required 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 of them manage to save up enough equity capital. A rule of thumb is that you should be able to raise 20 percent of the purchase price yourself – for an apartment costing 250.000 euros, that's still 50.000 euro.

As a result, the federal government is considering lowering ancillary purchase costs. Incidental purchase costs consist of land transfer tax, notary fees and, if applicable, broker commission, and cannot be financed by a normal real estate loan. The federal ministry of justice is currently drafting a bill for a so-called "bestellerprinzip", which would exempt buyers from the brokerage commission. The bill is expected to be drafted in the first quarter of this year, but whether it will actually become law is not certain.

. 20 years of the trade show in pictures .

What homebuyers need to know-3

Industry creates new jobs

Rostock. "2018 far exceeded our expectations". Construction companies once again noticeably increased the number of revolutions at the end of the year – also thanks to comparatively good weather conditions – and further boosted revenues.These were the words of dieter babiel, chief executive officer of the main association of the german construction industry, when he commented on the economic indicators for the construction industry published in the latest edition of the "aktuell zahlenbild".

According to the report, the companies in the main construction trade generated construction-related sales of 127 billion euros in 2018. Euros, 11.3% more than in 2017. The HDB had originally forecast a nominal plus of 6%. Despite the stronger price increases in 2018, to which cost increases for construction products and the significant collective wage increase would have contributed significantly, there would still have been an increase of 5.4% in real terms.

"In order to handle the additional production, construction companies have increased their workforce by 25.000 to 837.000 employees increased on average in 2018. Since its low point in 2009, the sector has thus added more than 130 new homes.000 new jobs created," is how babiel described the labor market situation in construction.

All about permanent make-up – open day with prize draw

Rostock. The real estate market is booming, prices for residential property continue to rise. This is shown by a current report of the council of real estate experts. "One beneficiary of high-cost purchase rates is the feds. Because higher real estate prices mean more revenue via land transfer tax," says florian becker, managing director of the bauherren-schutzbund e.V. (BSB).Politicians must now push ahead more efficiently with their plan to promote housing construction. Consumers becker recommends to pay special attention to hidden costs.

8.2 percent more than last year, the average purchase of a used property costs, according to the report. To avoid unexpected costs adding to the burden of financing, homebuyers should look closely. "If you buy a cat in a bag, you run the risk of considerable additional costs after the purchase," warns becker. For example, a modernization backlog could be paid dearly shortly after purchase. An independent expert can help assess the condition of the building. In any case, buyers should not allow themselves to be put under pressure. Those who rush into a purchase contract without checking it out are often blindly walking into a cost trap that can burden them for life."