The best funding programs for those wanting to build: federal, state or local government? Financial expert explains #funding #construction #financing

The best funding programs for those wanting to build: federal, state or local government? Financial expert explains #funding #construction #financing

After the surprising stop of KfW development loans for climate-neutral properties, those willing to build are missing important funding opportunities to finance their construction projects. In addition to the federal government, state and local governments also offer funding, although these are very heterogeneous and confusing. Young families and low earners in particular benefit from the support programs available. However, the pots are capped and are less generous than the discontinued program 297. Requirements such as income limits and energy efficiency standard 40 must be met in order to benefit from the funding. Experts warn of rising rents and financial problems if the KfW programs 297 and 298 are not reintroduced.

The effects of the funding stop can be serious. Those wanting to build are facing a major challenge as important sources of money for their construction project have dried up. Young families in particular who rely on financial support will find it difficult to find alternative financing options. Stopping promotional loans for climate-neutral properties can also have a negative impact on the real estate market, as demand for climate-friendly new buildings could decrease.

According to a report from www.capital.de, expert Michael Neumann hopes that the KfW programs 297 and 298 for climate-friendly new construction will be reintroduced. If this does not happen, rents could rise, causing financial problems for many people. It remains to be seen how the situation will develop and whether the funding opportunities at the federal, state and local levels will be sufficient to compensate for the resulting financing gap.