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New scheme to buy or rent a house

The new scheme for renting or buying a home has now turned into reality. After the appropriate procedures and some delays in its execution, the national legislature announced that the Housing Plan for the period between 2018 and 2021 is already in its final phase and its measures are studied, which in a special way are oriented so that under 35 year olds get can access to a rental or mortgaged home.

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Important aspects

The scheme, which is largely aimed at young people under 35 and people over 65 years of age, is retroactive and can be eligible for any purchases or rentals undertaken since January 1st, 2018.

The total amount that the government has allocated to this project has reached 1443 million euros and it will be distributed in a more or less balanced way over the years that the plan must stay active. The figure amounts to between 350 and 370 million euros per year.

However, these measures must be approved and implemented by the different autonomous communities, which may apply additional scheme within their territory.

Now, it is important to differentiate between the rent to buy schemes and the others, since they show a series of quite significant differences that can not be ignored in any way.

Purchase schemes: limited to the rural areas

When we take a look at the in depth review of the recently published Housing Plan, the truth is that direct purchase schemes are limited in every way. To begin with, only subsidies will be given to those young people under 35 years of age who take a step on the property ladder and buy their first home as their main residence.

Similarly, the subsidy is limited to 20% of the value of the property while maintaining a maximum margin of 10,800 euros. In addition, in order for the buyer to receive this grant, the purchasing process must be maintained at a price below 100,000 euros, all of which must be fulfilled in order to qualify for the grant.

Apart from all this, there is another condition that limits access to this type of scheme. The person under 35 years of age who wants to access this grant must comply with all the above and, in addition, find a home in a municipality of less than 5000 inhabitants.

This significantly limits access to obtaining this grant, although this scheme encourages people to opt for it in an attempt to prevent the rural areas from losing population the way they have been doing in recent years.

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Help to rent a home scheme

The help to rent schemes in the new State Housing Plan are divided by age brackets or the candidate's financial situation.

Once again, those under 35 years of age will be able to receive grants that will reach up to 50% of the monthly rent provided that this does not exceed 600 euros. Yes, the government has thought of particularly difficult cities like Madrid and Barcelona, ​​cities in which the income limit amounts to 900 euros. To put it simply, your income must be up to three times the Multiplier for the Public Income Index.

Those over 65 can access similar incentives by getting 50% of the rent. In this case, it is not necessary to count on an accumulated wealth exceeding 100,000 euros or to receive an income that exceeds three times the Multiplier for the Public Income Index.

For the rest of the people who rent a property and are aged between 35 and 65 years, they can get 40% of the rent provided that it does not exceed 600 euros or 900 euros in Madrid and Barcelona.

Finally, evicted and special-needs families such can access special incentives in order to enjoy a significant reduction in their monthly rent.

Renovation and repair schemes

The Housing Plan also includes aid for the renovation or improvement of both homes and communities of home owners. The aids are specially oriented to improve the energy efficiency of a property, thus achieving better levels of efficiency in all senses.

The limit for renovations of flats is at 8,000 euros while the owners of detached homes can receive up to 12,000 euros. However, the aid will never exceed 40% of the investment made. The disabled who are over 65 or people with earnings less than 3x the IPREM may receive up to 75% of the investment in home improvement.

In general, this is what the 2018-2021 Housing Plan is offering. It is a legislation that focuses on improving conditions especially for those under 35 years of age and those over 65 years of age.

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