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Baukindergeld goes to the right people – but it is the wrong approach

At the end of March, the Baukindergeld funding was ended. Immowelt takes stock and is rather dissatisfied: The Baukindergeld does not even cover the ancillary purchase costs. LBS director Axel Guthmann still speaks of the funding as a model for success.


“While the Baukindergeld in rural regions can provide families with the necessary financial injection to jump into their own home, it is unlikely in itself to be able to significantly increase the ownership rate across Germany. This has remained constant at around 44 percent for years […] – significantly lower in high-priced cities. The Baukindergeld has not changed anything in the 4 years of its existence. “

With these words, Immowelt summarizes the results of a current analysis of family-friendly properties (80 to 140 square meters) in a total of 397 German urban and rural districts, published at the end of March. The real estate platform had investigated how large a proportion of the purchase or construction costs for a home is covered by the child benefit. This is paid to families with a maximum household income of 90,000 euros (with one child) and amounts to 12,000 euros per child – provided that the families signed a purchase contract or received a building permit between January 2018 and the end of March 2021.

LBS considers the Baukindergeld in itself to be a successful concept – and Bavaria’s Baukindergeld Plus is an enormous support in rural regions

And especially in the more rural regions of Bavaria, the funding has a big effect: because the prices are low there, but you still benefit from the Baukindergeld Plus (up to a total of 25,000 euros) introduced in Bavaria. The Baukindergeld in the district of Wunsiedel, where the average family property costs 172,630 euros, covers 14.5 percent of the purchase price including ancillary costs, in the district of Kronach (average price for family-friendly property including ancillary costs: 150,910 euros) it is 16.6 percent and in the district of Hof at an average price of 130,280 euros, a full 19.2 percent.

On the other hand, there are extremely expensive cities in Bavaria such as Munich, where a corresponding property costs a median of 928,270 euros and the Baukindergeld Plus just covers 2.7 percent of the purchase price including ancillary costs.

Outside Bavaria, the Baukindergeld in the district of Mansfeld-Südharz in Saxony-Anhalt covers 14.5 percent of the average 82,550 euros for family-friendly property. In view of these sometimes very high values ​​and the fact that the state has mostly supported families with an average income of 20,000 to 60,000 euros, LBS manager Axel Guthmann said in an interview with Sparkasse in mid-2019: “The KfW figures after around 16 months have been proving since its introduction that the Baukindergeld is a model of success against all criticism.

Immowelt thinks that the child benefit is too low – or rather the wrong concept

The Immowelt experts see it differently towards the end of the state subsidy in March 2021 and show that in 368 of the 397 districts examined, less than ten percent of the costs incurred for purchase or construction are covered by the child benefit and in over half of the cases only less than five percent. A family of three who buys or builds a property with the help of 100 percent financing from the bank can usually not even pay the incidental costs of the construction child allowance – especially since these are incurred directly at the time of purchase, but the state subsidy over a period of is paid out for ten years. According to the Immowelt analysis, the situation in the big cities is extreme: In Frankfurt am Main, the child benefit covers only 1.8 percent of the costs incurred, in Hamburg and Potsdam it is 1.9 percent and in Stuttgart just 2.1 Percent. In Berlin, according to Immowelt data, the Baukindergeld covers 2.2 percent of the average costs of 554,240 euros.

That is why Immowelt explains: “Most families in [den Ballungsräumen] For example, waiving the real estate transfer tax for the first purchase of a property used by the owner would be much more helpful. “

Image Sources: WDG Photo / Shutterstock.com

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