Almondia – Bautipps Die Bauherrenberatung

Building subsidy

With the Baukindergeld, the state supports young families in the purchase of residential property, both when buying an existing property and when building a new house. The law on child construction subsidies applies retroactively to January 1, 2018. What exactly this support looks like, what conditions are attached to it and what problems it could bring, you will learn in this article.

the essentials in brief
Families with children who are willing to build are to be supported with € 1,200 per child (under 18 years) and year over a period of 10 years.

The support applies only to completed building permits and purchase contracts, not to mere construction projects.

This is what the building allowance looks like

The idea of making it easier for families with children to build their own homes is not entirely new. Between 1996 and 2005, there was already a homeowner’s allowance with a child allowance. The former €800 has now been increased to €1,200 per child per year. The grant is in place for 10 years. A family with three children can thus receive a subsidy of €36,000 over the entire period of the subsidy.

The subsidy is available to all those families with an annual taxable income of up to €75,000. This limit increases by a further €15,000 per child. The decisive factor for the subsidy is whether the children still live at home and are entitled to child benefit.

Prerequisites for being able to apply for the building subsidy are completed building permits and purchase contracts. The application itself must be submitted to the Kreditanstalt für Wiederaufbau (KfW).

What is the aim of the “Baukindergeld”?

The goal of the new government is to support young, less affluent families with the Baukindergeld. Because, as SPD Vice Chair Natascha Kohnen emphasized, creating enough living space is “the social issue of the 21st century.” And since building is expensive, the grand coalition hopes to encourage more people to plan their own homes by subsidizing them. The fact that the funding is aimed at young families with children was primarily a wish of the CSU.

Not only good news

Basically, the Baukindergeld is a great opportunity for families with children who are planning to build their own home and can provide significant financial relief. Nevertheless, there are also critical voices that are not only positive about the building allowance. The tax burden to implement such a project nationwide is undoubtedly very high. Critics criticize the resulting unequal distribution of the tax burden, since only those families who plan to build benefit from the subsidy, while everyone else still pays for it through their tax levies. The new government expects to spend 440 million euros a year. An estimated 200,000 families could benefit.

The government introduced the Baukindergeld mainly to support families and create additional housing. In fact, however, it is mainly the construction industry that benefits, as opponents of the child construction allowance object. In addition, the construction subsidy does not solve the housing problem in cities. The fact that the costs of the whole project would have to be borne primarily by future governments, since the subsidy is to exist for at least 10 years, also provides for much criticism of the Baukindergeld.

Despite the political discussion, families with construction projects can be happy about the financial support for the time being. The “Baukindergeld” makes it easier for many people to decide to start planning their own home.

Autorin Sarah Völkl

Sarah Völkl hat Architektur studiert und ist seit Jahren das Gesicht von a better place. Mit ihren Videos ist sie bei YouTube vielen Personen schon länger bekannt. Sarah teilt Ihr Wissen jetzt auch bei den Bautipps von Almondia.

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