Discount/stimulus package on new appts

[Madgolfer]

Government to encourages purchases of flats

The Croatian government has decided to loan Croats money for the purchase of first flats.

The government approved and sent to Parliament yesterday (Thurs) a draft law providing for government loans for flats costing up to 1,600 Euros per square metre.

The government will make loans of 100 to 300 Euros per square metre for such flats. For example, residents buying flats at a price of 1,000 Euros per square metre will be able to borrow 300 Euros per square metre and those buying them at a price of 1,600 Euros a square metre will be able to borrow 100 Euros a square metre.

Prime Minister Jadranka Kosor believes the measure will increase sales of newly-built flats.

The government has budgeted 100 million kunas (14 million Euros) for loans in 2010. They expect to loan money for the purchase of 1,000 flats this year. There are more then 2,315 newly-built, unsold flats in Croatia.

The loans will have a maximum duration of 30 years and an interest rate of 5.0 per cent.

[Carol]

Where will the rest of the purchase price come from though? Family? Not so many people have lots of money available in cash these days.

[Madgolfer]

I had assumed that the govt "loan" would be in addition to, or as part of, raising a mortgage.

[Carol]

then lending criteria for banks that own cro banks must be different from uk banks. Uk banks don't want to have anyone else with a right to take the house if you default on the mortgage but I assume that the croatian government will put a plombe on the property?

[francis]

The loans will have a maximum duration of 30 years and an interest rate of 5.0 per cent.

I believe its 2% which makes it work, maybe they can use this as a down payment to bank,
but wouldn't you think they should have done this in the tax system , as in change of ownership, and pay that over the 30 years
Oh no, 90,000 loan, they give you 9,000 take back 4,500 ownership tax so what you really get is 5,500, interest on 9,000 so what % is your loan.?

[Carol]

there is no 5% rett for 1st time buyers who hold croatian papers.