Loans have taken out for the purchase of an apartment or a house – this is what the media-known mechanism known as “Apartment for Young People” is. It hit the market in January 2014. With the passage of subsequent months, it enjoys increasing interest from beneficiaries.
The year 2018 will be the last in which you can apply for subsidies. Is it worth it The ministry’s data suggest that the average program beneficiary has collected over 25,000? USD, record-holders receive amounts exceeding 100 thousand. USD.
What exactly is the “Apartment for young people” program?
It is a mechanism that allows young people to obtain a subsidy to buy an apartment or house to meet their own housing needs. So it is not a solution for those who would like to buy an apartment for rent.
The conditions for using the program vary depending on whether the beneficiary is a large family or not. Let’s look at the second case first.
The more children, the higher the surcharge
The subsidy program is intended for persons up to 35 years of age (in the case of marriages, it is sufficient for one of the spouses to be at most 35 years old). The property must be purchased on a mortgage, it can come from a developer, cooperative or second hand. As a rule, the beneficiaries can only be people who have never owned residential property before.
The supplement may amount to:
- 10% of the replacement value of the property being purchased – for singles and childless families,
- 15% of the replacement value of the property being purchased – for families with one child,
- 20% of the replacement value of the purchased property – for families with two children.
In the case of a flat, the area may not exceed 75 sq m. in the case of a house, 100 sq m. Additional payment is calculated only for the area not exceeding 50 sq m of the purchased property. Flats and houses for which the price of a square meter does not exceed the limit may qualify for subsidies – this is periodically published by Credit Checker and amounts to:
- on the primary market – 110% of the average index, which reflects the cost of reconstruction of a square meter of an apartment in a given area (in January 2016 the limit in Warsaw was over USD 6.4 thousand per sq.),
- on the secondary market – 90% of the average indicator, which reflects the cost of reconstruction of a square meter of an apartment in a given area (in January 2016 the limit in Warsaw was less than USD 5.3 thousand per sq m).
It is easiest for children with extra money to pay extra
Other rules apply to families with many children, i.e. those with at least three children. In this case, the beneficiaries may also be families who have or have once owned a residential property.
What’s more, the age of the beneficiaries is not important – from the point of view of the program, people with at least three children qualify for the “Flat for the Young” program. Such families also have preferences regarding the amount of the additional payment.
In their case, it is 30% of the replacement value of the property they are buying. Moreover, in any family in which a third or subsequent child is born within 5 years of purchasing the property, an additional payment of 5% of the replacement value of the property being purchased may be requested. If that were not enough, the subsidy for large families is calculated for an area not exceeding 65 sq m.
Limits of the real estate area that can be bought with such an additional fee are also slightly higher. For flats, this is a maximum of 85 sq m, and for homes 110 sq m. Price limits that large families can spend on an apartment or house are the same as for other beneficiaries.