Property market updates - Ten million euros dedicated to aiding families in acquiring homes.
Thuringia's Infrastructure Ministry announced a plan to allocate ten million euros this year to support families with children in purchasing residential properties. Eligible families with at least one minor child in the household can receive a state subsidy for the first-time purchase of a self-occupied residential property. This initiative, which dates back to the beginning of the year and will come into effect in mid-June, is part of a funded program available at the Thuringian Development Bank as of June 17.
In an attempt to help families with kids buy homes, the Thuringian State Parliament, following a request from the CDU party, reduced the land transfer tax on real estate purchases from 6.5% to 5% last fall. The change in the law received support from the AfD, the FDP, and independent members. As part of this initiative, the land transfer tax for families who buy their first self-occupied property was either waived or refunded in full.
The recently created guidelines for the funding program give families with kids a subsidy of 5% on the agreed purchase price listed in the notarial deed. The funding is limited exclusively to self-occupied houses or condominiums with purchase prices not exceeding 400,000 euros and plots of land valued at 100,000 euros or less.
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This financial aid from Thuringia's Infrastructure Ministry will significantly benefit Erfurt families, as they can now acquire homes with reduced real estate purchase costs. The subsidy, which is part of a larger program, will help many families in Thuringia achieve home ownership. The construction sector in Erfurt may also see a boost due to this increased demand for homes.
