What is Baukindergeld and how does it work?

76 posts in this topic

It may be an unintended consequence but this will presumably have an inflationary effect on the house market.

 

If you add help for buyers like this without increasing supply then there is simply more money chasing the same assets, so it's just adding fuel to the fire of an overheating property market.

 

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Yeah, my thoughts exactly. If that comes in, I can either buy a shoebox or forget property ownership entirely. Sometimes I really detest how politicians prefer to pander to their electorate (or those of other parties they think they can scrounge away), all to be paid for by people they are then excluding.

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16 hours ago, swimmer said:

 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).

 

I appreciate your substantive response, though I don't agree with it.   Also, you were making sense (though I didn't agree) right up until that last sentence.  Parents raise children and simultaneously do lots of other things, such as education, entrepreneurship, etc. 

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So the actual benefit is 1200€ per year per child limited to ten years? I wonder if this will really help people get off the fence of ownership vs. renting when houses are north of 400k €.

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In an area where housing is more affordable, as where we are, I think it would make a substantial difference to tipping the balance towards home ownership - the thing round here is a different shape - it is actually more expensive to rent than to buy - my current mortgage is half the cost of renting the same property, and after 20 years at this rate I would own it. In theory having been able to save/invest that extra cash all those years. And yet 60% of the population here choose to rent.

 

So if the policy is trying to get parents to buy, rather than rent, then that extra cash might well make a difference.

 

If it is about trying to assist parents in areas where housing is scarce and expensive, and buying is more long-term stable than renting, then I don't know how much good it will do. Presumably they would be more able to afford a shoe box than before, but quite who that helps, I don't know. Building more shoe boxes might make a difference.

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27 minutes ago, kiplette said:

- my current mortgage is half the cost of renting the same property, and after 20 years at this rate I would own it.

 

But is this perhaps because of the size of the deposit you put down at the beginning?

If your deposit is/was 90%, then of course the 20yr-mortgage rate is lower than the rent... if your deposit is/was 10%.... 

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Oh, no, maybe 10-15%? Not sure now, but really not whopping. It is a real comparison -  when we first decided to get a house here, it seemed much better to rent for the first year, to see how it went, but we would have used up so much money we could then not have bought anything.

 

It really is just completely different than the monster cities, and the city effect is smaller - we are only 40 minutes train-ride from Hannover, so easily commutable, but that still has little effect on prices. I imagine that will change.

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Dear all,

 

I just read about the Baukindergeld.

It is my understanding that it has become law now.

 

I bought an apartment in February 2018 and I have 2 children. I live in Munich.

 

I'm trying to read its details here but I'm not able to understand it all.

 

https://www.vergleich.de/baukindergeld.html

 

How do I apply for Baukindergeld? Is the law the same in all regions? Will I get money monthly or does it come in a form of tax deduction?

 

Thanks a lot.

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1 hour ago, sbenedetto said:

Dear all,

 

I just read about the Baukindergeld.

It is my understanding that it has become law now.

 

Yes but the details are still unclear. One can not apply for it yet. Since it's federal law it will be the same everywhere (except Bavaria, they plan some add-on).

 

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On 10.8.2018, 14:02:45, kiplette said:

Oh, no, maybe 10-15%? Not sure now, but really not whopping.

 

A little math exercise, for the fun of it ...

 

If your deposit was 10%, and the house price say 300k, a 20yr 2% fixed volltilgung mortgage would be 1376/month.

I would expect for a house whose market value is 300k, the rent is much lower than 1376/month.

 

In other words: to pay a mortgage rate lower than the rent, one needs to put down a large deposit. Of course you can play with the numbers, but I think the conclusion will not change.

 

Good for you you could buy early. We also wanted tobuy early but we were "forced" to wait few years. Now building. Very exciting time.

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... or pay the mortgage for a long period of time ...

300k house price, 10% deposit, 3% fixed rate for 30yr makes a mortgage rate of 1148/month.

I think this makes mortgage rate and rental cost equal... but excluding many many other important factors...

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Sources like Bild have naturally done the maths on where it is best value.  It'd also be the case that fewer people would be eligible anyway in the richer areas I guess (given there's an income limit of, I think, 75k).

 

Rental yields tend to be low here (under 3% round my way) and purchase prices have pulled away from rental ones (which have controls).   We're dealing in like 55:20% (our bit of Berlin) or 35:14% (DA) in the last few years.   

 

However, seeing a friend sign up the other day, some other factors come in.   They live in a typical dated postwar block and so rent is not too high but, as we gentrify, that may well not last forever.  One day they would be on the hook for renovations, while rent also goes up.  They woule likely soon be paying for (?) 350k place and not a 250k one, and so may as well buy the 400k one now (which will also likely be 450k+ in a year).  That sort of maths is also coming into play now.

 

But yes, building a home is very exciting, and awesome thing.   Not the thing that I'd have done in my home market but I found it was a very interesting and worthwhile thing.   The only negative is I see it very much as "mine", more so than ones I bought re-sale, and this makes me a bit more sentimental in thinking of selling up :blink:.

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The details:

Quote

Die Voraussetzungen für Ihre Förderung

  • In Ihrem Haushalt leben Kinder unter 18 Jahren für die Sie oder Ihr Partner Kindergeld erhalten.
  • Ihr Haushaltseinkommen beträgt maximal 90.000 Euro pro Jahr bei einem Kind plus 15.000 Euro für jedes weitere Kind.
  • Sie haben frühestens am 01.01.2018 den Kaufvertrag unter­zeichnet oder die Baugenehmigung erhalten.
  • Ihr neues Zuhause ist derzeit  Ihre einzige Wohn­immobilie.
  • There are children under the age of 18 in your household, for which you or your partner receive the child allowance (Kindergeld)
  • Your household income does not exceed €90,000 per year if you have one child, plus €15,000 for each additional child
  • You signed the purchase contract or received approval for your construction permit no earlier than January 1, 2018
  • Your new home is currently* your sole residential property (i.e. not a second home). "Currently" meaning it was your sole residential property on the day you signed the contract or received construction approval

Those eligible will receive €12,000 per child, payable in 10 annual installments of €1,200 each.

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Correct me if I'm wrong, but I think on top of the property being the only residential property you own in Germany, it also requires you actually reside there!

 

 

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No, you're right, Gambatte - that's implied. It must be your sole residence and you must live there (or plan to live there).

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46 minutes ago, El Jeffo said:

and you must live there (or plan to live there).

 

I think that if you "plan" to live there it's not enough, You must really live there. 

At least this my understanding from reading the above link.

 

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Do you have/find any hint about the following situation: buy the (first time) flat and live there for 5 years and get the Baukindergeld. Then, for the reason of job relocation, the owners rent out their flat and rent another flat to live in. Are the owners can still receive the Baukindergeld? 

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21 minutes ago, Gambatte said:

 

 

I think that if you "plan" to live there it's not enough, You must really live there. 

At least this my understanding from reading the above link.

 

 

You're right. There's some more info in a PDF linked on the website: https://www.kfw.de/PDF/Download-Center/Förderprogramme-(Inlandsförderung)/PDF-Dokumente/6000004381_M_424_Baukindergeld.pdf

 

"Meldebestätigungen
Der Nachweis der Selbstnutzung muss anhand der Meldebestätigung erbracht werden. Die Melde- bestätigung muss den Hauptwohnsitz des Antragstellers, der im Antrag angegebenen Kinder sowie seines Ehe- oder Lebenspartners oder des Partners aus der eheähnlichen Gemeinschaft ausweisen."

 

"registration confirmations
Proof of self-use must be provided on the basis of the registration confirmation. The registration confirmation must show the principal residence of the applicant, the children specified in the application and the spouse or cohabiting partner or the partner from the marriage-like community."

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7 minutes ago, bizzu said:

Do you have/find any hint about the following situation: buy the (first time) flat and live there for 5 years and get the Baukindergeld. Then, for the reason of job relocation, the owners rent out their flat and rent another flat to live in. Are the owners can still receive the Baukindergeld? 

 

"Der Anspruch auf die Zahlung von Zuschussraten endet zu dem Zeitpunkt, an dem die Selbstnutzung des Wohneigentums aufgegeben wurde."

 

The entitlement to payment of subsidy instalments ends at the time when the owner-occupation of the residential property is abandoned.

 

https://www.kfw.de/PDF/Download-Center/Förderprogramme-(Inlandsförderung)/PDF-Dokumente/6000004381_M_424_Baukindergeld.pdf

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