Hungarian government to give families even EUR 322,000 to build greener homes!
Who said that the Hungarian government is not generous with the Hungarian families? Now, they shared the details of their latest real estate building and development program concerning green technologies and energy saving real estate.
Based on the calculations of portfolio.hu, a Hungarian financial and business news site, Hungarian families, who already have or plan to have at least three children, can get 42 million HUF (EUR 117,657) allowance and 73 million HUF (EUR 204,500) soft loan to buy or build a new green home. That makes more than 322 thousand EUR If a family with three children can have and invest in Hungary.
In the case of the families with two children, this sum goes down to 20+80 million HUF (EUR 280 thousand), while it is “only” 93 million HUF (260 thousand EUR) if a family has or plans to have one kid.
The Hungarian government provides, currently, the following allowances and soft loans to the families in Hungary:
- the CSOK (family housing subsidy) scheme including a non-refundable and a refundable part with only a three pc interest rate. If you already have or promise to have at least three children, the maximum for the former is 10 million HUF (EUR 28 thousand), while the latter is 15 million HUF (42 thousand EUR).
- Subsidised “baby loans” that target young married couples in the first place, who commit to having (more) children. Under the scheme, married resident women aged 21-41, along with husbands, are eligible for a maximum HUF 10 million general-purpose loan. That loan will become interest-free after the first child, while 1/3 will be abolished after the second, and the whole sum will become non-refundable after the third child.
- Rural CSOK, where 600,000 forints (EUR 1,890) is available after one child, 2.6 million forints (EUR 8,200) after two and 10 million forints (EUR 31,530) after three. Interestingly, the support can also be used to buy, expand and revamp homes in villages under 5,000 residents.
- In 2021 January, the government started a home revamp scheme with a government-supported interest rate of 3 pc.
- In 2021, several additional elements of the CSOK scheme was introduced, including subsidising loft conversion and installation or refunding the tax of house building.
- From October 4, the Green Home Program is also available, including green CSOK-loans, which is 10 million HUF (EUR 28 thousand) for families having or planning to have 2, and 15 million HUF (EUR 42 thousand) for families having or planning to have three kids. The interest rate is 0 pc on that. Besides, there is an additional 55 million HUF (154,000 EUR) with a state-subsidized 2.5 pc interest rate.
If somebody is bold enough
to take up all the available loans and subsidies and commits to having three children and green home, they are eligible to get even 322 thousand EUR from the state, of which 117,600 is non-refundable. That would mean an almost 300 thousand HUF (EUR 840) instalment monthly.
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Source: portfolio.hu,
Providing incentives for having families and building a greener future? I have to say this is a win-win situation. Too bad, most of Western leaders and certain media outlets will ignore this.
Its a nice initiative, but government should also consider creating mechanism to make sure the real-estate prices dont explode even more.
As soon as they introduced “baby loans” prices went up by 10 millions within a few months. I am afraid that now the big players in real-estate will raise the prices even more , we will look at 1,5-2.0 millions per sqm average in BP and outskirts.
This government really needs to make sure ‘some’ dont take advantage of this help, so far all the help that government provided went into the pockets of a few.
They should tax the hell out of individuals and companies that own more properties specially for renting to discourage this business because this an unfair game for the average people who are looking for a home not an income source, this is where capitalism is not a good idea,
Since 2014 prices tripled let that sink it, salaries didn’t.
@Justsomeguy
You make some excellent points. However, I am skeptical that people are able to take advantage of this new plan and the “baby loan.” Isn’t the idea that both parents must be Hungarian to be considered/accepted for these loans?