Social partner plan:
Home ownership bonus of up to 100,000 euros for private individuals
House builders and home buyers should receive 20% of the costs, up to a maximum of 100,000 euros, for their first home as a subsidy, the Chamber of Commerce and trade union are urging the government. More housing subsidies and tax relief are also needed to support the construction industry. Specifically, 310,000 jobs are at stake.
Anyone building or buying their first home should receive a bonus of 20 percent of the costs, up to a maximum of 100,000 euros, from the state as a subsidy. This "gift" would then be like equity capital, making it easier for private individuals to obtain a bank loan.
With this core proposal, Harald Mahrer, head of the Chamber of Commerce, and construction trade unionist Josef Muchitsch are urging the government to introduce a "construction package" in the next few days in order to revive the slumped industry as quickly as possible. "310,000 jobs are at stake, and a standstill now also means that in a few years' time there will be a lack of housing or it will become even more expensive," warn the social partners. According to the forecast, only 46,400 new properties are likely to be completed in 2026 instead of the more than 62,000 apartments recently. Help must therefore be quick, effective and simple.
Lending guidelines should be relaxed
Further points: Increasing housing subsidies by at least 500 million euros per year for at least the next three years and relaxing the strict lending guidelines, for example by increasing the permitted debt to household income ratio (currently 40 percent). Incentives such as a shorter tax depreciation period for investments are required for commercial property developers.
Christoph Badelt, President of the Fiscal Council and the "budget debt guardian", judged these requests to be expensive but sensible. Construction is an economic driver, he said, but subsidies should be made subject to compliance with ecological criteria.
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