Subsidies for house building
If you want to build a house or buy a residential property, the project can be subsidized by the state under certain conditions. But what funding is available and under what conditions can you benefit from it?
Forms of state support for house construction
There are different types of government subsidies for building a house or purchasing a residential property. They can come in the form of tax benefits, government allowances, reduced Interest charges or a subsidy that does not have to be repaid.
Well-known subsidies at the federal level are the Riester subsidy (residential Riester), loans from the KfW with favorable interest rates, and the BAFA subsidy for regenerative energies. In addition, regional support programs are offered in the individual federal states.
In general, subsidies can be considered for house construction, house purchase and modernization measures. As a rule, the grants must be applied for before the start of the planned activity.
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Riester promotion
For homeowners or apartment owners who live in their property themselves, a Riester subsidy may be an option. Generally, all compulsorily insured persons in the statutory pension insurance an entitlement to the Riester subsidy in the living area. At the same time, those eligible can claim loan repayment allowances and take advantage of tax benefits that help accelerate repayment.
Riester savers can also use their savings to reduce house or apartment debt. This can be used as equity either at the start of the real estate measure or for an ongoing one financing for special repayment measures.
However, it is important to know that the subsidies are then taxable at retirement age. There are also a number of rules to be followed when selling a property.
Favorable loans from KfW (Reconstruction Loan Corporation)
As part of its program for home ownership, KfW offers particularly cheap loans with low interest rates. It also provides grants for the construction of an efficient energy-saving house or for a comparable renovation. Loans from the KfW are brokered to the KfW bank via the house bank of the recipient. Details on funding opportunities can be found on the KfW website.
Subsidies for regenerative energy from BAFA
As an authority within the Federal Ministry of Economics, BAFA (Federal Office for Economics and export control) responsible for the allocation of subsidies that use regenerative energies advance. In the living area, this applies e.g. B. Solar systems, wood pellet heating systems or heat pumps. Funding usually takes the form of an investment grant that does not have to be repaid. The amount of the subsidy depends on the planned system output. Details can be found on the BAFA website.
Regional subsidies for construction
In various federal states and also in individual municipalities, there is a large number of regional programs with different funding purposes. The range of subsidies ranges from cheap loans to special leasehold projects for Familys, to funding programs for environmentally friendly construction. Regional funding programs can be found on the Internet, in a online database, which was created by KfW in cooperation with the consumer advice centers.
There are a number of subsidy programs in Germany for building, buying or renovating a house available that house or apartment owners who live in their property themselves make use of can. However, it is important to apply for the funding in good time, as these usually have to be approved before the planned measure.
