Hessengeld: State government promotes home ownership

Hessengeld: State government promotes home ownership

The Hessian state government is reacting to rising real estate prices, which are making it difficult for many young families to fulfill their dream of owning their own home. The “Hessengeld” subsidy program was launched to counteract this problem. This program will provide new financial support for the purchase of your first home starting in the fall. The basic principles of the program were determined in a special cabinet meeting, which took place in a shell of a new development in Wiesbaden-Nordenstadt.

The “Hessengeld” stipulates that in the future 10,000 euros will be paid out for each first-time buyer of a property and 5,000 euros for each child. This is primarily aimed at young families, but single first-time buyers of apartments or houses can also benefit from this subsidy. The payment of the “Hessengeld” should take place retroactively from March 1, 2024 and only applies to the purchase of residential property or land for your own use within the state borders. The exact details of how to apply will be finalized in the coming months, and the subsidy will be paid out in consistent installments over ten years.

The state government estimates that around 23,000 property purchases per year could qualify for “Hessengeld”. The idea behind this subsidy came about because of the unpopular real estate transfer tax, which is one of the additional costs when buying real estate. While the construction industry generally welcomes the initiative, it also emphasizes the need for further measures to make housing more affordable, including reducing construction costs and property transfer tax.