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The National Union of Construction Employers (ÉVOSZ) welcomes Wednesday’s announcements, László Koji, president of the organization, summarized for the Index. By the way, already in 2015, when subsidies for family homes were introduced, ÉVOSZ asked that the various subsidies be extended to renovations as well. It also considers the maximum limit of 3 million HUF to be ideal, as the organization has previously calculated that this amount is in line with the cost and technical content of average renovations.
László Koji – referring to the announcement of the minister without a portfolio responsible for families Katalin Novák – said about the procedure that the new support schemes will operate in accordance with the previous chocolate support system. You need a written contract, a detailed budget, you have to move money through an account, you have to sign a contract with a commercial bank, and the program is subsequently financed; These are the most important characteristics of the procedure. According to
IF THESE MINIMUM EXPECTATIONS ARE NOT PRESENT, VERY SERIOUS ABUSE IS POSSIBLE.
“Unfortunately, this comes with bureaucracy, commercial banks will demand the highest administrative expectations and transparency of the process, because they just won’t give the money away.” – said László Koji. Among other things, the home renovation program is expected to:
- it offers employment opportunities for micro and small businesses, and the backlog of orders in the construction industry is almost 20% lower than a year ago, among other things due to the epidemic period;
- they are also expected to whitewash the market and level the playing field in this submarket.
This type of work requires a written contract, which, however, shows serious deficiencies in the work done in this area. According to László Koji, 70% of home renovations do not have a written contract, because to save 27% VAT, the parties involved, along with all their disadvantages, the contractor is not paid and the client often says in vain that I don’t think so.
No lumps, the quality of the housing stock can be improved
An important development compared to previous chocolate subsidies is that, according to newly announced details, there is no 10-year residential obligation, László Balogh, senior economic expert at Ingatlan.com, told the Index. According to him, this could have been questionable just because, for example, it already existed in the case of a HUF 600,000 chocolate grant, while it is now possible to move in the case of a HUF 3 million renewal.
The real estate market expert emphasized that although this support can only be used once per family, the new resident can also use this support for a maximum of HUF 3 million in the same apartment, if the property is sold.
The winners of this grant can be not only families, but in this case even real estate.
– said László Balogh, adding that the interest in the apartments to be renovated among the used flats is “quite low”, but their proportion within the total offer is already significant.
Renovation grants can also boost the market, as buyers and buyers can now appeal not only to the simple model of renovating a property before sale, which will be worth more and easier to sell, but also to: The next family that moves can also benefit from this support. In this way, this market can be opened to those for whom metropolitan real estate is considered unaffordable: they too can more easily choose a medium-sized or renovated property, as they can also get public support for a newly purchased property, in addition to additional subsidies for housing.
According to László Balogh
It is highly questionable how much building capacity the construction industry will have to provide for home renovations.
If thousands of families start renovating their homes at once, they may not have to wait just a few months for tiling. The expert also added that the coronavirus epidemic released capabilities.
The union president, László Koji, also sees that the program can greatly improve the stock of aging homes, as well as other measures: since January 1, the institution of VAT refunds of up to HUF 5 million is already operating in small settlements , regardless of whether they are new or it is a used property and this subsidy is not linked to having children.
(Cover Image: Zhang Peng / Getty Images Hungary)
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