2023-07-30 11:37:29
The Labor Department’s My House program may be enabling many young people to get interest-free or subsidized loans to buy a home, but so far the main issue is that cheap homes are in short supply.
Currently, approximately 40,000 applications have been made to this program, 7/10 have been pre-approved and approximately 4,000 homes have been purchased.
It should be noted that the budget for the program is now doubling, i.e. from 375 million euros to 700 million euros, in order to benefit more young people.
Essentially what the program foresees is the granting of loans of up to 150,000 euros to 25 to 39 year olds, with a duration of 30 years, with as a rule 3/4 of the interest rate being interest-free.
It is absolutely interest-free for those with many children, i.e. for those who have more than 3 children.
The income criteria
The income someone must have to join the specific program is over 10,000 euros and up to 16,000 euros for a single person, up to 24,000 for couples and +3,000 euros for each child.
With the amount that a young person will receive from this program, they can buy a house worth up to 200,000 euros, older than 15 years and up to 150 sq.m.
Now in the minimum income, the imputed income will also be taken into account, i.e. someone can have 5,000 euros in real income, but with his imputed income, he can rise to 10,000 euros and be a beneficiary of the program.
In addition, the determination of the 15-year age of the house will be based on the issuance of the permit and not the year of completion.
Furthermore, the calculation of the area of 150 sq.m will be made without the warehouses and the parking areas.
In this way, even older houses are included in the search for beneficiaries of the program.
What are the thorns of the program
As Mr. Kostas Georgakos, President of the Greek-Serbian Chamber of Northern Greece, notes at Open, “4,600 houses have not been sold, they have been approved, but no actions have been taken yet.
Within all the conditions mentioned previously there is something else.
From the moment the approval is made by the Greek investment bank, they have six months to make the contract.
Six months to make the contract is very rare, given the situation we live in.
In the land registry in Thessaloniki, you need 18-20 months to register in the land registry. As a priority because you have a loan, it takes 3-6 months.”
However, other issues are recorded that act as a brake on the program.
For example, it is difficult to find a house and thus one can lose the subsidy, while in addition there is a refusal from the owners when they learn that someone is in this program.
This is because the owners know that they will get their money after six months, that there is a good chance that the house will not sell, that the contract will not be done because of the delays.
Thus, a series of major difficulties are presented, bureaucratic, but also difficulties that have to do with the accuracy of the houses and rents that the authorities will need to bend over in order to overcome them and move the program forward.
Source: Reporter.gr
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