The residential district promises state subsidies for property buyers. At first, that sounds better than it is. Because the support is tied to so many conditions that it is not worthwhile for every home buyer.

The state subsidies in the form of Riester payments sound tempting for many home buyers.  But not everyone can really save money in the process.

Dhe real estate prices are rising and rising – and Germans can still buy their own apartment. Because the financing has become extremely cheap again, because after a brief increase in the past two years, the construction loan interest has almost fallen back to the low of autumn 2016. In addition, there is support from the state: the new child benefit, partly subsidized building land and – the resident.

Since 2008, the previous Riester subsidy, especially for insurance companies and equity funds, has been expanded to include real estate. It is usually combined with a home loan and savings contract. In addition to your own payments into this contract, there are also the annual Riester allowances: 175 euros for each, 350 euros for a married couple, plus 185 euros for older and even 300 euros for younger children (born in 2008 at the earliest). Alternatively, payments of up to 2100 euros can be deducted from the tax as special expenses. The latter is particularly worthwhile for high earners without children. The allowances are more attractive for people with an average income and two young children. If a building loan is later taken out with the home loan and savings contract, the allowances continue to flow and the loan repayments can be deducted from tax up to 2100 euros.