Prospects for family support when buying property in Berlin and Brandenburg

The federal state of Hesse has taken the first exemplary step towards supporting property buyers, especially families, when purchasing a property with the now adopted Hessengeld. In the hope that Berlin and Brandenburg will also follow this example, we present the Hessengeld in more detail here.

The motivation behind the promotion

Owning a property, whether a detached house or a condominium, is a great desire for many families. After all, owning your own property goes hand in hand with a strong sense of security and is usually a stable investment in the future. Since interest rates have risen again and construction costs have reached new highs, financing your own home has become difficult for many prospective buyers. This is where the Hessengeld comes in to provide financial relief.

At the end of April, the state government adopted the key points for the subsidy, which are part of the immediate action programme “11 + 1 for Hesse”. This programme is intended to support citizens when buying a property.

Funding is possible for these properties

The focus of the subsidy is on owner-occupied residential properties for buyers who are buying or building a property for the first time. The property must be located in Hesse. The Hesse subsidy is particularly aimed at ancillary purchase costs, which are to be partially offset by the subsidy. In the long term, the state of Hesse is actively campaigning for the federal states to be able to create allowances for land transfer tax in order to enable more citizens to buy property. Until new opportunities arise at federal and state level, the Hessengeld serves as a transitional solution.

Inheritances or gifts are not eligible for Hessengeld, as no real estate transfer tax is payable in these cases. As the Hessengeld is granted retroactively from 1 March, the earliest cut-off date for the date of the purchase contract is also 1 March 2024.

The Hessengeld provides relief when buying a property

Up to two buyers of a property are entitled to 10,000 euros each. An additional 5,000 euros is available for each additional child. The subsidy is granted up to the amount of the real estate transfer tax actually paid. Payment is made annually in ten equal instalments. You can find further information on applying for and receiving the subsidy from the Hessian Ministry of Finance.

Also an option for property purchases in Berlin and Brandenburg?

In order to enable as many people as possible to realise their dream of owning their own property, it would be desirable for other federal states to follow suit. Together with our financing partner, we at Bream Immobilien are monitoring the market and new funding opportunities in order to incorporate these into our advice on property purchases and property financing.