Lügde. The town of Lügde is drawing attention to the fact that there are new subsidies from the Federal Ministry of Construction. The federal government wants to support young families in buying a home with a new subsidy program. The Young Buys Old program started last week. The goal is to enable families with medium and lower incomes to buy a single-family home, said Federal Minister of Construction Klara Geywitz.
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The program is aimed at families who want to buy and renovate an existing property that is in need of renovation. The state development bank KfW will provide low-interest loans for the purchase of the apartment, which are linked to conditions for restoration. According to the Ministry of Construction, 350 million euros are available this year to finance the interest reduction.
Families with minor children are eligible
According to the ministry, in order to apply for funding, applicants would have to purchase an existing property with a building energy certificate of classes F, G or H – and renovate it to at least energy efficiency class 70 EE within 54 months of the funding being approved. It is possible to combine this with funds for renovation funding.
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Families with underage children and taxable income of no more than 90,000 euros for one child and 10,000 euros more for each additional child are eligible for funding. Those who receive funding must live in the house or apartment themselves for at least five years; the building must be used for residential purposes for at least ten years in total.
The new federal program can be a very good opportunity for the Lügde location.
Torben Blome, Mayor
A KfW loan with an interest rate of 1.51 percent (with a term of 35 years and a ten-year interest rate fixation) is therefore available for up to 100,000 euros for one child, up to 125,000 euros for two children and up to 150,000 euros for three or more children. The loan term can be seven to 35 years, and the interest rate fixation can be ten or 20 years.
Mayor Torben Blome sees great potential in the program for the local region: “The new federal program can be a very good opportunity for the Lügde location, since many older generations here in particular are demanding smaller and barrier-free living space and are looking for successors for their own existing properties – an opportunity for all generations.”
Important: The funding must be applied for before the purchase contract is concluded!
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