Baukindergeld

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The Baukindergeld was introduced in Germany in 2018 as a state subsidy for acquiring real estate for families with children in the form of a cash grant.

The German Bundestag passed a corresponding legislative resolution on July 5, 2018 (Budget Act 2018). It came into force retrospectively from January 1, 2018 when it was announced in the Federal Law Gazette.

After the owner-occupied home allowance, which was abolished at the end of 2005, the Baukindergeld is intended to make it easier for families with children to acquire property in the real estate sector.

Bavaria increases the child allowance by 300 euros a year.

The promotion in detail

  • Purchase or construction of owner-occupied property between January 1, 2018 and December 31, 2020 (date of purchase contract or building permit)
  • Application after moving in (at the latest after 6 months, originally 3 months by May 16, 2019, last possible on December 31, 2023)
  • Annual grant of 1,200 euros for families per child over a period of 10 years
  • Income limit: household income for a family with one child of a maximum of 90,000 euros per year and an additional 15,000 euros for each additional child
  • Children under the age of 18 who are entitled to child benefit and who have their main residence in the household are deemed to be children within the meaning of the regulation
  • For house or apartment
  • No residential property at the time of the building permit or the notarial purchase agreement
  • For new or existing properties - not for renovation, extension or conversion
  • No living space limitation
  • Nationwide
  • No repayment of the grant

Application for child benefit

Funding is the responsibility of the Federal Ministry of the Interior, Building and Home Affairs (BMI).

KfW is responsible for the payment .

Controversy and criticism

It is often criticized that the Baukindergeld is socially unbalanced. It does not reach those who are actually in need, primarily promotes the middle class and thus fails to serve its purpose, goes primarily to those families who actually do not need it, especially low-income households, and does not help low-income families.

Further points of criticism from the point of view of the effect of the child benefit on the real estate market are:

  • "Significant deadweight effects ", that is, price increases due to the factoring of the subsidy in real estate prices, similar to the home ownership allowance .
  • no differentiated funding for structurally weak regions
  • Preference for new buildings without activating existing properties, regardless of the local structure and demographic location

The subsidy acts as a kind of “stay bonus for the country”, where it is more significant due to the comparatively low property prices. At the same time, however, there are enough houses and apartments in the country, and additional homes are not needed there. The Baukindergeld runs the risk of creating additional vacancies. The Baukindergeld is a “slimmed-down new edition” of the home ownership allowance, which was abolished at the end of 2005, “with similar deficiencies”, according to Der Spiegel .

Press

Web links

Individual evidence

  1. ↑ Bayerische Landesbodenkreditanstalt: Baukindergeld plus. September 18, 2018, accessed on September 18, 2018 (German).
  2. ↑ Stiftung Warentest: Baukindergeld - This is how much property buyers get - Stiftung Warentest. In: test.de. January 1, 2018, accessed May 8, 2020 .
  3. ↑ Funding programs (domestic funding) (PDF)
  4. ↑ FAQ on Baukindergeld and special building projects, family constellations or ownership structures - www.fragenzumbaukindergeld.de, accessed on October 27, 2018.
  5. ↑ Finanz.management: Baukindergeld - subsidy from the state. Finanz.management, July 7, 2018, accessed on July 11, 2018 .
  6. ↑ Baukindergeld: With a subsidy for your own home | Current information in: kfw.de , accessed on July 13, 2018.
  7. ↑ Social Association Germany e. V .: Press release from June 25, 2018. In: sovd-mv.de. June 25, 2018, accessed May 8, 2020 .
  8. ↑ a b c IW study: Baukindergeld is counterproductive . In: ZEIT ONLINE . ( zeit.de [accessed on October 3, 2018]).
  9. ↑ tagesschau.de: Real estate industry: Baukindergeld increases prices. In: tagesschau.de. October 16, 2019, accessed May 8, 2020 .
  10. ↑ beb / Reuters: OECD criticism: Deutsche Baukindergeld harms poor households. In: Spiegel Online . November 21, 2018, accessed May 8, 2020 .
  11. ↑ Michael Fabricius: Baukindergeld: Economists sharply criticize the new regulation. In: welt.de . April 4, 2018, accessed May 8, 2020 .
  12. ^ A b Jan Hildebrand: "Considerable deadweight effects": Federal Audit Office sharply criticized Baukindergeld . Ed .: Handelsblatt. ( handelsblatt.com [accessed October 3, 2018]).
  13. ↑ Baukindergeld: Who gets it and why it is criticized - dhz.net . ( deutsche-handwerks-zeitung.de [accessed on October 3, 2018]).
  14. ↑ Ann-Kathrin Jeske: Premium for the country . In: Der Spiegel . No. 27 , 2018, p. 36 ( online - June 30, 2018 ).