When buying your first home

ÖVP duo tinkers with deductibility of loan interest

Finance Minister Magnus Brunner and State Secretary for Youth Claudia Plakolm.(Bild: Copyright BKA/Dunker)

Land of mountains, land by the river, land of fields - and soon also land of owners? In his plan for Austria, Chancellor Karl Nehammer announced an offensive for home ownership. As the "Krone" has learned, an initial model from the plan is now being worked out in detail. An old funding pot is to offer new opportunities for this.

The most recent youth study clearly showed that 93 percent of young Austrians want to own their own four walls, a condominium or a detached house one day. "We in politics have a responsibility to make this possible. In recent years, however, this has become almost impossible," says ÖVP State Secretary for Youth Claudia Plakolm - and also explains how it should be done. 

Model already under review
In addition to various rent-to-buy models and the abolition of additional state fees, such as land transfer tax on the first home, the deductibility of loan interest on the first home is now also to be examined.

"We are currently also considering the deductibility of interest on the first home. Something similar already existed in the past - but it was decided to abolish it at the time because this model was very bureaucratic and the positive effects were very small. A new model would have to be unbureaucratic and really specifically promote home ownership," announced Finance Minister Magnus Brunner in the "Krone". 

Ownership is an investment in the future. If young people are industrious and want to build something for themselves, then we need to support them as a state.

Jugendstaatssekretärin Claudia Plakolm (ÖVP)

Until 2016, there was a pot for special expenses from which the interest was reimbursed. However, according to the ministry, the correct submission and completion of the application was probably incredibly time-consuming for the people themselves and the administration and was therefore hardly ever used. At the same time, another model is also being developed for young people. 

As reported, young Austrians who rent with an option to buy are to have the rental costs of the first five years deducted from the later purchase price to the cent. "The plan to abolish the real estate transfer tax for the first home was unfortunately not feasible with the Green coalition partner," Plakolm explains to the Krone. The cooperative law, which is part of the basic legislation in the Ministry of Economic Affairs, is to serve as a lever for this.