Credit 0%, i.e. how does the Tusk government keep "agreement" with developers?

At 1 of the last conferences of the Ministry of Technology and Development, Minister Krzysztof Hetman presented the assumptions continuation (although the failure to introduce a fresh program) “a place to start” introduced by PiS a year ago. Although the Law and Justice-led housing policy based on stimulation of request can surely be regarded as very unsuccessful, the fresh Prime Minister Donald Tusk has decided to proceed this policy and even increase it! In this column we will look at what programme the fresh government has prepared for us and what effects it will have if it is introduced in the announced form.

Objectives

The basic assumptions and principles of the programs are as follows: “The interest is planned to be set at 1.5% for 1 and 2-person holdings, 1% for 3-person holdings and 0.5% for 4-person holdings. Five-person households were assumed to be able to benefit from a 0% interest rate credit. Households consisting of 5 people will be able to participate in the programme, allowing the acquisition of a larger flat or home on preferential terms. In another cases, the property is required to be the first. Unlike Safe Credit 2 percent, the Start flat program will let couples without formal association to usage the loan, which is intended to grow the scope of possible beneficiaries. The gross income criterion was set at 10 1000 for singles, 18 1000 for 2-person households, 23 1000 for 3-person households, 28 1000 for 4-person households and 33 1000 for 5-person households. Maximum amounts of preferential loans under the strategy are: PLN 200 1000 for 1-person household, PLN 400 1000 for 2-person, PLN 450 1000 for 3-person, PLN 500 1000 for 4-person and PLN 600 1000 for 5-person. It should be noted that these amounts do not find the maximum value of the property or the maximum amount of credit that can be received. The amount of credit up to this amount is to be granted on preferential terms and above that amount on marketplace terms. There are no limits on the price of the property or the request to have own contribution (there is simply a anticipation to get credit without own contribution). Compared to Safe Credit 2 percent, the maximum age of singles entitled to usage the program, which is now only 35 years, has been importantly reduced. It is planned that the flat program on Start will start in the mediate of the year. The Ministry estimates that 50,000 preferential loans will be granted this year.“

Effects

When, at the turn of 2022 and 2023, the request for housing could be importantly weakened, inter alia, due to interest rates rising and thus stagnation in fresh mortgages. At this point, developers were left on ice. The forthcoming parliamentary elections and Letters from developers This led to the fact that then Minister Waldemar Buda introduced the already celebrated 2% loan. As expected, specified a throw of money worked demandably and increased housing prices and developer income. Of course, this did not improve the availability of housing for young people or families and made it difficult. Poles hoping to choose a fresh government hoped for a sensible solution to the real property crisis in Poland. Unfortunately, although noisy declarations did not work and a replay of the erstwhile failed program was proposed again, only that expanding its “power”. If the bill were to enter into force in its current form, it would most likely consequence in a re-increase in prices and an increase in the deficiency of housing for the average citizen.

The visible increase in housing prices on the example of Warsaw, erstwhile the 2% debt was announced, had already begun speculation and price rally.

The coalition divided

Light in the tunnel erstwhile changing this task and investing these funds in more needed projects proposes a coalition Left. Anna Maria Żukowska decided a fewer hours of announcing the program clearly, questioning the program proposed by Minister Hetman. presently everyone is waiting for a discussion in the Sejm and most likely judging by votes in the network by not voting on the bill or its crucial changes. Is this PiS task going to aid KO like KO helped PiS with a 2% debt project? We'll see about that in the next fewer weeks.

@DGRight: Left does not support the improvement of the fresh housing credit strategy announced by the Ministry

@AM_Zukowska: If the Left is to vote in the Sejm and the legislature for any solutions to be reported in the mode of government project, then they must be... pic.twitter.com/Qcpk0VTNf4

Source:

– Previous column

– Housing prices

– Miniature

Did you like the article? Read another one!