What is Baukindergeld and how does it work?

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Hi,

Recently, I heard about Baukindergeld. I would really appreciate if someone could provide more information about it.

1. Is the policy officially approved? 

2. What is the date (in the purchase contract) to be eligible for the Baukindergeld?

3. Does this apply for the case when buying an apartment (eigentumswohnung) ? 

 

Thank you in advance!

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16 minutes ago, bizzu said:

1. Is the policy officially approved? 

 

Not yet, it's planned for the summer.

 

16 minutes ago, bizzu said:

2. What is the date (in the purchase contract) to be eligible for the Baukindergeld?

 

It's planned to pay it out backdated to 1.1.2018.

 

16 minutes ago, bizzu said:

3. Does this apply for the case when buying an apartment (eigentumswohnung) ? 

 

It applies for the first buy of owner-occupied property, the maximum family income is 75.000€ + 15.000€ per kid.

 

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1. Not yet, but the government coalition announced that they have agreed on it, and it is expected to be passed by August.

2. As things stand right now, it is supposed to be valid retroactively to January 1, 2018. The date of the purchase contract or construction permit issue is decisive. If you bought last year, you'll get nothing.

3. Yes, as long as it is your first purchase.

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many thanks for your information!

4. Could you please explain a bit more detail about the owner-occupied condition?

For example, let's say we buy the (first time) flat and live there for 5 years. Then, for the reason of job relocation, we move to another city and rent out the flat. Are we eligible for the Baukindergeld? and if yes for how many years?

5. Does the first purchase/flat applies separately for a husband/wife or for both?

For example, the husband already bought a flat some years ago. After 1.1.2018 the wife bought the flat for the first time in her life and the whole family live in the new flat that the wife recently bought. Is she eligible for Baukindergeld? 

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I really can't say, given that nothing's final yet. Very little information is available online except the basics: €1,200 per year, per child, for the FIRST-TIME purchase of a home, provided your taxable household income does not exceed €75,000 plus €15,000 per child (meaning €105,000 for a family with two children, for example. Only if the child is eligible for Kindergeld, and only if the child lives in the purchased property - which would seem to exclude your example in 4, although like I said, nothing is final.

 

As to 5, I assume it will apply to the family unit. It remains to be seen how they'll deal with divorce/remarriage, single-parent households, and so on.

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Der Spiegel announced a second restriction to the Baukindergeld that the coalition is expected to approve during a budget meeting this Thursday: in addition to the income limit of €75,000 plus €15,000 per child under 18 living in the same household, a four-person family can only get the subsidy if the purchased home has living space of 120 m² or less. This figure increases by 10 m² with each additional child, e.g., 130 m² for a family with three children.

 

If the purchased home is any larger than the defined limits, no subsidy will be granted.

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26 minutes ago, El Jeffo said:

 a four-person family can only get the subsidy if the purchased home has living space of 120 m² or less. This figure increases by 10 m² with each additional child, e.g., 130 m² for a family with three children.

 

Good news for those of us with properties of that scale, when we come to sell, of course.  That sort of "subsidy" (noticable how it's never welfare when it's we middle classes getting it) always ends up with owners and developers and agents.  Nice free money coming our way.  Every little helps.

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The devil is in the details.

The word in the article is Flaechenobergrenze. What does this normally mean, Wohnflache or Nettogrundflache, or yet something else?

In my case Wohnflache and Nettogrundflache are 119 and 132qm...

 

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They use Wohnfläche to determine whether Hartz IV recipients get their rent subsidized, for example, and whether a residence is large enough to support family reunification.

 

No reason to think they'd do anything different for this.

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Two contracts: one for the land from vendor X (with an old crappy house on it, soon to be demolished), and one for the build, normal Bauunternehmen.

Both signed March 2018.

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Then you should qualify for the Baukindergeld, as long as you have 2 kids living at home with you and your household income is within the defined limits.

 

Like you said, though, there's no guarantee. The law isn't anywhere close to being finalized yet.

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I was not aware of the two children detail. Where did you read it?

I/we have a single child. 

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Read my post above. The 120 m² figure is quoted for a family of 4, plus 10 m² for each additional child.

 

It wasn't stated explicitly, but that looks like the corresponding limit for a family of 3 will be 110 m².

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56 minutes ago, Gambatte said:

I was not aware of the two children detail. Where did you read it?

I/we have a single child. 

 

According to the latest die Welt report from yesterday, the current plan to limit access to living area up to 120qm applies to family households with up to 2 children.

 

Quote

Denn wie aus einer Vorlage des Bundesfinanzministeriums für den Haushaltsausschuss hervorgeht, die WELT vorliegt, haben Finanzminister Olaf Scholz (SPD) und Bauminister Horst Seehofer (CSU) die Planung an einer kleinen, dafür aber entscheidenden Stelle geändert: „Die Wohnflächenobergrenze beträgt 120 Quadratmeter für Haushalte mit bis zu zwei Kindern“, heißt es in der Vorlage. Für jedes weitere Kind sollen zehn Quadratmeter hinzukommen.

 

So, wie es jetzt geplant ist, hat das Baukindergeld gleich zwei Schranken für potenzielle Interessenten: Gefördert mit 1200 Euro pro Kind und Jahr wird über den Zeitraum von einem Jahrzehnt nur, wer als Familie mit einem Kind nicht mehr als 90.000 Euro zu versteuerndes Haushaltseinkommen bezieht.

 

For each additional child a further 10qm may be added. However, to qualify for the 1200€ per child and year over ten years, the maximum taxable income limt for a single child household is 90K€ p.a.. For each additional child the amount increases again by 15K€. As a result a family with two children may earn up to 105K€ in taxable income.

 

2B

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8 hours ago, El Jeffo said:

They use Wohnfläche to determine whether Hartz IV recipients get their rent subsidized, for example, and whether a residence is large enough to support family reunification.

 

No reason to think they'd do anything different for this.

 

Yeah but for Hartz IV (and analogous recipients) there is a public policy argument that the welfare money should not be supporting too grand a lifestyle - though a qm limit still doesn't make much sense.  For the Baukindergeld program the goal is to encourage home ownership by families with children.  While I can see public policy reasons to limit this government support based upon the recipients' incomes -- what does the physical size of the dwelling have to do with it?  If somebody wants to buy a run down Dreseitenhof in MeckPom, that's also in the public interest -- but this QM limit would rule out the Baukindergeld. 

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The aim of the programme is for actually people to produce children for Germany and for the children to be properly housed.   For people not to have to choose between "home ownership and children".    It's not to buy homes for parents or families.  Or to populate space, or consume land, or featherbed developers and existing homeowners who can now sell for more, or benefit consumer goods companies who will have more consumers, and the other things that automatically follow. 

 

It's one thing to subsidise one population group through giving them more cash than others get in order to deliver a policy - here producing children.   A classic unintended consequence of giving money for a specific policy aim is that the extra buying power crowds out people who (for whatever reason) do not get that cash.  

 

 Therefore it will only functionally extend to the normal amount of space and size for one or two children.  It's not for one group (already benefitting from transfers of other people's money) to gain yet further by buying excess space (already a scarce resource) at the expense of everyone else, while also crowding them out.  The state has to be clear about how a policy giving money to one group impacts the whole populace, and contain it accordingly.   Other recipients of welfare for housing have limits on how much space they get.

 

In addition, the parents are being paid for being parents and to house their children properly.  To devote their resource to that.   Not property renovation.   The state won't want this money being paid out for children to live in ramshackle homes.   While the lower middle class get money on the basis that they (unlike the better off) do not have the resource to both pay for a private home and raise children, it's quite hard to logically suggest they can manage raising children and the much more substantial effort of rebuilding a property (or possibly ethical to tempt them).

 

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