Skopje, 17th December 2015 (MIA) – “Young Individuals and Couples Housing Project” is the new Government Project aimed at providing support for a new house to persons of up to 35 years regardless of their marital status, as well as for increasing the birth rate, through the opportunities to choose two models of subsidies, Prime Minister Nikola Gruevski said at the press conference at the Government Building yesterday.
The first model, as he said, related to a loan of up to 20 years and maximum amount of EUR 50 thousand, the country will subsidize the monthly installment for a period of 11 years, i.e. 80% of its amount in the first eight years and 50% thereof in the remaining three years. Under the second model, the participation for the loan is fully subsidized depending on the loan amount.Requirements for obtaining Government subsidies under this Project are generally as same as the ones for the “Buy a House, Buy a Flat” Project, except for the initial criterion, i.e. the age requirement, for the person to be extended the loan to be 35 years old at the most. At the same time, the applicant, regardless of his/her marital status should neither have a place of residence on his/her name nor be extended a loan. If the borrower is a young individual in order to be eligible for the subsidy, he/she should be 35 years old at the most with monthly earnings up to EUR 900, and if it is a matter of couples, at least one of them should be 35 years old at the most and their total income should amount up to EUR 1,300. Project only refers to acquiring new empty houses built by construction companies, as well as building own house on own land or house superstructure and extension.
Gruevski expects for its application to also have positive effects on the construction companies building new houses, as well as the companies for manufacturing construction materials and the interior and exterior design companies. – Thus, we are also focused on additional support to the construction and the construction companies in Macedonia, which will contribute to their greater profitability and job creation in the construction sector, Gruevski said.
In case the young individuals and couples choose the first model, as Prime Minister explained, the Government will pay EUR 160 for an installment of EUR 200, including the principal and the interest, and the borrower will pay EUR 40 in the first eight years of the loan, while the monthly subsidy in the next three years will amount to EUR 100, as same as the installment amount to be paid by the borrower.
– Those who apply for the Project may take a loan even higher than EUR 50 thousand, however, only portion of the loan up to this amount will be subsidized. Approximate estimates show that the borrowers will be granted a subsidy of EUR 30 thousand for a loan of EUR 50,000, subsidy of EUR 28 thousand for a loan of EUR 40 thousand, while the support will amount to EUR 20 thousand for a loan of EUR 30,000, Gruevski said. Interest rates remain the same as so far, 3.95% in the first three years, and 4.44% in the fourth and fifth year, after which the interest will be set by the respective bank, however it must not be higher than the interest rates on the other loans for flat or house.
As for young individuals and couples choosing the “participation” model, their participation will be 100% subsidized, i.e. EUR 12,500 if they apply for EUR 50,000 loan, the maximum loan to be subsidized under the Project. What is positive for this mode, as Gruevski said, is that the interest rate is fixed throughout the loan repayment, amounting to 4.5% plus monthly EURIBOR. As for EUR 40,000 loan, the Government will pay EUR 10 thousand to the borrower as participation, while the subsidized participation for EUR 30,000 loan will amount to EUR 7,500.
– All global studies related to birth rate show that the married couples living in a house more often decide to have more children than those living in a flat. Project is aimed at helping a big number of young individuals and couples to get their own house, and it also indirectly contributes to increasing the birth rate on the medium and long run, Gruevski said.
In cooperation with the Mayors and the municipalities, as he announced, the Government will provide additional number of lots for building houses. Government will help the municipalities that will prepare and implement detailed urban plans, envisaging lots for building of at least 100 houses, by paying part of the utility fees, the amount of which will be additionally agreed together with the Association of Local Government Units.
“Buy a House, Buy a Flat” Project in the past four years, with the subsidies amounting to EUR 4 million and 700 thousand euros, as Gruevski said, helped 728 families to resolve their housing issue. This Project, as he pointed out, has provided for significant reduction of both the price of square per meter and the interest rates on the housing loans (flat or a house). We expect for the “Young Individuals and Couples Housing Project” to have even bigger effect, as well as to help a large number of families to acquire their new home, Gruevski said.
Project, as Gruevski announced, will be launched as of February next year at the latest. It is a step-forward project offering more favourable loan terms and conditions, intended for young individuals and couples, in relation to the ongoing “Buy a House, Buy a Flat” Project, which will also continue to be implemented.
Responding to journalists’ questions, Deputy Prime Minister Zoran Stavreski pointed out that funds for implementing the Project have been envisaged within the Budget for next year and depending on the needs and the interest, additional amount will be provided under the Supplementary Budget.