Help for house builders
State increases funding for housing subsidies
The state's housing subsidy is intended to support the creation of living space in accordance with social, energy-efficient and ecological criteria. Modified payment tranches and an attractive interest rate have now led to increased demand from house builders.
The Vorarlberg state government has made it easier to pre-finance subsidized new-build apartments for personal use. Since the beginning of September, a larger proportion of the promised land money has already been transferred in the first payment tranche. "This makes the Vorarlberg housing subsidy, which is one of the best in Austria in terms of interest conditions, even more attractive," explains the responsible state councillor Marco Tittler (ÖVP). Due to the brisk demand, the state funds in this area will be increased by five million euros.
Until now, half of the housing subsidy loans for owner-occupied apartments and homes were paid out at the start of construction and half after the property was occupied. As of September 1, the first payment tranche was increased to 75 percent and transferred after the subsidy loan has been recorded in the land register. For Marco Tittler, this is "a noticeable improvement" for the purchase of apartments or the construction of owner-occupied homes. Due to the high demand, the state funds for loans to private individuals for new builds and renovations will be increased by five million euros.
"We are deliberately retaining the very favourable conditions of the subsidized loans in order to further strengthen the importance of housing subsidies," emphasizes the Provincial Councillor. The interest rate for the subsidy loan starts at 0.25 percent and rises to 1.5 percent by the end of the repayment period (35 years). Alternatively, a fixed interest rate of 1.25 percent can be selected for the entire term.
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