The problem that people in the real estate market focus on to explain the rise in prices is the small supply of real estate, especially quality real estate.
Around 750,000 homes are currently listed as vacant, or 15% of the country’s total housing stock, which could potentially provide significant breathing space if it were to return to the market.
The “Renovate – Rent” program is moving in this direction, which aims to bring vacant homes onto the market by subsidizing the owners for their upgrading.
According to reports, about 12,500 properties can get back into the real estate game. The Ministry of Social Cohesion is “throwing” 50 million euros into the market to subsidize the renovation of empty homes.
Payment in advance
With provisions in the bill for the beaches that was submitted last Friday, it is foreseen that from the specific program it is possible to pay 50% of the subsidy in advance, i.e. before the work begins. A fact that makes the program quite attractive compared to other programs such as for example ECOIKONOMO.
In fact, according to OT information, the platform for joining the program will be available from the end of February to the beginning of March, that is, within the next fortnight, someone will be able to join the program.
Program conditions
Homeowners with an annual income of up to 40,000 euros and real estate up to 300,000 euros will be able to participate in the program, while those who have joined energy saving or renovation programs for any of their properties in the last five years are excluded.
The property must have an area of up to 100 sq.m. and located in an urban area, it must not have been declared as a first residence, or as rented but listed as vacant in the E2 of the last three years.
Those joining the program are subsidized for repair and renovation costs up to 10,000 euros.
In detail, the program provides for the subsidy for the repair of houses with the purpose of making them available for rent and in which owners or beneficiaries of residential properties participate for one of their residential properties, provided that:
a) own or usufruct the property by a percentage equal to or greater than fifty percent (50%),
b) the property has an area of up to one hundred (100) square meters (sq.m) and is located in a residential area,
c) have an annual family taxable income, real or presumed, that does not exceed forty thousand (40,000) euros and have real estate, the total value of which does not exceed the amount of three hundred thousand (300,000.00) euros.
The property must not have been declared as a first home or rented and declared as vacant on the E2 form accompanying the income tax return for the last three years.
Also, the beneficiaries must not have received a subsidy for an energy saving or renovation program in their property in the last five years and they must not have joined subsidized energy saving programs for any of their properties.
The amount of the subsidy
Those participating in the “Renovate – Rent” program are subsidized for repair and renovation costs on their property, amounting to up to ten thousand (10,000) euros, (for materials and work). The subsidy amounts to forty percent (40%).
Of course, in order to be able to get the subsidy, there must be an electronic payment of the invoices, and most importantly, after the renovation, the beneficiaries must proceed to lease the property with a duration of at least three (3) years.
The “ace” of the advance
According to the new amendment of the Ministry of Social Cohesion and Family, part of the subsidy can be paid in advance. This advance cannot exceed fifty percent (50%) of the total subsidy granted to each beneficiary. This means that the advance payment can reach 5,000 euros.
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