New housing subsidies to slow down speculators
politics
In Salzburg, subsidized apartments always end up in the hands of investors and speculators – a practice that the state now wants to stop. An amendment to housing subsidies provides for a penalty payment for sellers who sell subsidized apartments to higher earners.
The new housing subsidy is intended to make renting and buying property in Salzburg a little more affordable in the future – at least that is the goal of housing councilor Andrea Klambauer (NEOS). The most serious innovation is a “speculative brake”, as Klambauer calls it. This will slow down the ascent in real estate prices.
Property is intended to be resold to an eligible entity
If someone buys a condominium and receives a subsidy of several tens of thousands of euros from the state – i.e. a housing subsidy because it is below a certain income limit – this apartment should only be resold to worthy supporters. If this is not the case – the seller has to pay a penalty to the state – one and a half times the open housing subsidy that the owner once received from the state when buying.
With this regulation, the state wants to make the sale to wealthy investors less attractive, according to the office of the housing councilor. The new housing subsidy law is still under review until the beginning of May, and it should be passed in the Salzburg state parliament before the summer.
Tenant subsidy will be increased
With the new housing subsidy, the rent subsidy will also be increased – to an average of 287 euros per month. The criteria for subsidies for rental apartments on the free market are also being relaxed. With the building land security model, economical use of land is rewarded – house builders with a floor area of less than 400m² will receive a quarter more funding in the future.