Financial Services, Latvia, Legislation, Loan, Real Estate

International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 19:52

Extra EUR 4 mln to be granted to first-time home buyer program in Latvia

BC, Riga, 28.06.2016.Print version
The ruling coalition parties in Latvia on June 27th agreed to grant additional EUR 4 million to the government program intended to help families with children buy their first home and also decided to introduce a ceiling on the value of the property to be purchased under the program, Latvian Prime Minister Maris Kucinskis (Greens/Farmers) told he press after the meeting of the ruling parties, informs LETA.

The coalition partners agreed to continue the program under which families with children can receive state-guaranteed mortgage loans to buy housing, and extra financing will be granted this year to keep the program alive.

 

At the same time, a ceiling of EUR 200,000 will be introduced on the value of properties to be bought under the program. So far about 25 properties purchased under the program have value in excess of EUR 200,000, which suggests that some of the beneficiaries are people, who do not really need state support very much, Kucinskis said. By establishing the maximum limit on the value of the property, the government will be able to help more families who are the target audience of this housing program, the prime minister said.

 

Of the above-mentioned additional allocations of EUR 4 million, EUR 2.5 million will be taken from the contingency funds and EUR 1.5 million will come from the proceeds of selling temporary residence permits to investors from third countries, who have invested in real estate in Latvia.

 

The housing program for families with children is being financed from the proceeds from sale of temporary residence permits to investors from third countries but the number of investors seeking to obtain temporary residence permits in Latvia has been shrinking lately therefore the program is faced with a shortage of financing. The ruling coalition previously agreed that the program should continue but with some adjustments to its terms.






Search site