Tenants' association and chamber of architects demand low interest rates
On the occasion of the Conference of Building Ministers in Baden-Baden, the Tenants' Association and the Chamber of Architects in the south-west have called for low-interest loans for housing construction. "Loan funding should be used exclusively to offset losses so that projects can be realized with a "black zero"," they said in an appeal to the state government on Thursday, which was also endorsed by the International Building Exhibition of the Stuttgart city region. Housing construction for the common good currently has a funding gap of between 4 and 6 percent.
With regard to the tax relief planned by the federal government, the tenants' association criticized the fact that this does not include the creation of new living space in existing buildings. In the government draft, the degressive "deduction for wear and tear" (Afa) is only planned for new residential buildings. This means that instead of three percent of the construction costs, six percent can be written off annually as a tax credit for six years.
In contrast to the tax relief proposed by the federal government, the Tenants' Association emphasizes the need for incentives to promote the creation of new living spaces within existing buildings. The lack of construction funding in federated states for this purpose could hinder the realization of housing projects that serve the common good.
Source: www.dpa.com
