Fewer and fewer families can afford to build a new single-family home. At the same time, the prices of older, unrenovated properties are falling. According to the latest property price index from the empirica research institute, older houses with poor energy efficiency have experienced the greatest price decline. They are therefore worth significantly less on the market than houses that are better insulated.
Anyone who buys such a house may be getting a bargain, but they must also think about renovating it at the same time. Otherwise, the burden of high energy costs will soon be great. Families who buy and renovate an old house can count on state funding in the future. The “Young Buys Old” (JkA) program will start on September 3, 2024, announced a spokesman for the Ministry of Construction.
Who is the JkA funding intended for?
The target group for the new funding program are families with underage children and low to medium incomes who want to live in the purchased house or apartment themselves.
To receive the funding, a household must maximum 90,000 euros per year in household income In addition, there is 10,000 euros for each child.
Only people who do not yet own a property are eligible for funding.
The amount of the grant and how many children you receive the grant for depends on your life situation on the day you submit your application. For example, you can also receive the grant for a child who turns 18 on the day you submit your application. However, you will not receive any grant for children who are born after you submit your application.
What requirements must the property meet in order to receive funding?
The prerequisite for funding is that the house or condominium has a building energy certificate of classes F, G or H when purchased – i.e. it consumes a lot of energy compared to modern houses.
Improved energy efficiency must then be achieved through modernization within four and a half years. Specifically, the old building must then achieve the “Efficiency House 70 Renewable Energy Class” standard in accordance with the “Federal Funding for Efficient Buildings”.
Other government funding programs, such as replacing heating systems, can also be used for this purpose.
Read also: Switching to climate-friendly heating: This is what the new state funding looks like
How much is the funding available under the “Young Buys Old” funding programme?
The purchase of an existing home or condominium is made possible by low-interest loans The state development bank KfW is supporting this project. The KfW loan number is 308.
You can choose between an annuity loan and a bullet loan. The interest rates will not be published until September 3rd.
More information:
Types of loans: What is the difference between an annuity loan and a bullet loan?
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With an annuity loan, the monthly rate remains the same throughout the term. It consists of an interest and a repayment component.
With a bullet loan, the borrower pays “only” the interest and no repayment during the term. The loan is then due in one lump sum on a specific date.
The amount of the loan granted depends on the number of children and the level of household income. Families with one child can receive a maximum of 100,000 euros, families with three or more children a maximum of 150,000 euros.
The purchase price of the property including the land costs for a maximum of one residential unit is subsidized.
This year, 350 million euros are available for this purpose. Interested parties should apply for funding soon, because in the past it has often happened that funding pots quickly ran out and interested parties were left empty-handed.
Information on how to apply is available on the KfW website.
