The welfare state is very important in Germany. As a result, citizens have various options for receiving support – mostly of a financial nature. The best-known subsidies include unemployment benefit, citizen’s benefit, but also housing benefit and child benefit.
In addition, various insurances such as pension insurance, health insurance, nursing care insurance or unemployment insurance are also counted among the areas of social legislation. So there is a lot coming together that is now too much even for parties from the political center such as the Union or the FDP, as politicians from these ranks repeatedly warn.
Baukindergeld is much less well known, but it is currently no longer possible to apply for it. Therefore, this article presents an alternative to counteract the crisis in housing construction.
Baukindergeld: What’s behind it?
The Baukindergeld is a “subsidy for the first purchase of owner-occupied residential property for families with children from federal funds”. With this, the KfW (Kreditanstalt für Wiederaufbau) and the Ministry of Construction led by Klara Geywitz (SPD) want to promote the construction and acquisition of more single and two-family houses as well as condominiums. The home ownership rate among families in Germany, which is low compared to the EU, is to be increased.
The funding consists of an annual Grant of 1200 euros for every child under 18 years of age. It can be accessed for a maximum of ten years. Beneficiaries must:
- Be a (co-)owner of self-used residential property
- be entitled to child benefit or live in a household with a person entitled to child benefit
- live in the household with at least one child under the age of 18 for whom there is entitlement to child benefit in the household
- have a taxable annual household income of up to 90,000 euros for one child; for each additional child the upper limit is 15,000 euros higher
Baukindergeld: Why is the funding no longer available?
The Ministry of Construction and KfW have announced that building child benefit can no longer be applied for because the funding available for it totaling 9.9 billion euros has been exhausted. However, the funding will considered “very successful”..
Baukindergeld: What funding is there instead?
A current KfW project bears the name Home ownership for families and should encourage them to build in a climate-friendly way. The funding conditions have been improved as part of the federal government’s package of measures to support housing construction in Germany, the Kreditanstalt informs.
For example, the upper limit of taxable income for a family with one child is 90,000 euros, as with building child benefit, with an additional 10,000 euros for each additional child. The maximum loan amount is now between 170,000 and 270,000 euros.
There are the following gradations:
- 170,000 euros for the “climate-friendly residential building” funding level for one or two children
- 200,000 euros for the “climate-friendly residential building” funding level for three or four children
- 220,000 euros for the “climate-friendly residential building” funding level for five or more children
- 220,000 euros for the funding level “Climate-friendly residential building – with the Sustainable Building (QNG) quality seal” for one or two children
- 250,000 euros for the “Climate-Friendly Residential Building – QNG” funding level for three or four children
- 270,000 euros for the “Climate-Friendly Residential Building – QNG” funding level for five or more children
However, support for home ownership for families is not an option for citizens who have already received building child benefit. In addition to the income limits already mentioned, the following applies to those entitled to benefits:
- You must live in the subsidized property as an owner with a co-ownership share of at least 50 percent.
- You must live with a child under 18 in the household.
- The new house or condominium must be the citizen’s only residential property in Germany.
The KfW points out that there is also funding for a child who turns 18 on the day the application is submitted. On the other hand, no money goes to children who are born after the application is submitted.
2024-02-11 01:29:00
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