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Gov’t announces 6 measures for cheap housing

The Greek government announced on Thursday several measures for cheap housing as they were proclaimed by the Prime Minister at the Thessaloniki International Fair (TIF) last Saturday.

The so-called Social Housing Strategy benefits mostly young people up to 39 years old, but also homeowners who lease to young generations or want to renovate properties for long-term leasing.

These measures are:

1. Interest-free or low-interest mortgages for young people aged 25-39 for housing build up to 2007.

2. Mass renovation of empty houses

3. Utilization of real estate of the State through the institution of social compensation

4. Subsidy for the energy upgrade of an owner-occupied residence for young people aged 18-39

5. Renovation of closed housing subsidy up to 10,000 euros for long-term lease of 5+ years; subsidy covers 40% of the expenses. Beneficiaries are 10,000 young people and couples aged 25-39.

6. Creation of new modern student residences

7. Increase of student benefits

For details check out here in Greek

Low-interest mortgage for 25-39

The special loan program for the 25-39 years old provides the purchase of first residence up to 120 square meters built up to 2007.

The program will initially amount to 500 million euros, with co-financing of 375 million euros from the state from DYPA and 125 million euros from the banks.

The aim of the measure is to ensure an interest rate of 1% for the purchase of a first home in areas with older buildings, by citizens aged 25 to 39.

According to the examples given by the government staff, a couple, with minimal financial participation, will buy a house worth 100,000 euros with monthly installments of 275 euros.

For the implementation of the measure, special income criteria are established corresponding to those of the heating allowance, which allow lending to those who have a minimum income criterion of 10,000 euros and a maximum income limit corresponding to the heating allowance. That is, an annual total family income of 14,000 euros for debtors who are single, widowed or separated and an income of 20,000 euros for married persons.

It is noted that the amount is increased by 3,000 euros for each child.

Minister Kostis Hatzidakis said that not both partners have to be aged 25-39, but one of them is sufficient.

IN addition, the loan will be interest-free for people with three and/or more children or if the beneficiary has 3+ children while repaying it.

At the same time, there is a provision for doubling the budget in case of exhaustion of the available resources.

Implementation of the program will begin in the first quarter of 2023

Program “My Home”

A budget of 1.74 billion euros in total is foreseen for the “My Home” program, which includes measures for the housing of young people and citizens up to 39 years of age, students and vulnerable households and is addressed to more than 100,000 beneficiaries.

The initiatives are intended to act as a “bulk” against skyrocketing rental prices and help with housing for citizens who cannot afford it, the government ministers said.

Aim is aim to reduce the high cost of housing, to increase the ownership of young people and support young people and young couples for housing rehabilitation.

At the same time, the government aims to modernize and upgrade old properties, alleviate the distortions that exist in the housing market, giving incentives for cheap long-term leases and finally addressing the demographic problem.

More details of the cheap housing program here in Greek.

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2 comments

  1. I don’t know if things have changed but almost 20 years ago a young friend of mine was awarded a low interest (0%?) mortgage by IKA. He lived in a 2 bedroom apartment and had 3 children, 2 boys and a girl, and the girl was reaching puberty so the aim was for him to buy a 3 bedroom apartment so that the girl could have her own room. One of the conditions was that the apartment had to be 100 % legal and it would be inspected to ensure that was the case. He had no problem finding apartments that met all his requirements but in the whole of Thessaloniki, Greece’s second biggest city, and the surrounding area he could not find an apartment that was fully legal. In every case the actual build deviated from the plan submitted to obtain building permission in a way that broke planning rules. In the end he gave up. I hope this new generation of aspirational home owners don’t face the same problem.

    • architects, construction builders, owners , authorities they all participated in the “illegal extension of buildings.” wehn the state needed revenues due to bankrupcty, it allowed everyone to legalize it against a fee, around 1000 in the average.

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