| CHANGES IN THE FIRST HOME PROGRAM 12/02/2010 |
| (2010-02-12) |
| Last updated: 2010-02-15 13:23 EET |
This, however, is not the most important change the Government will make to the First Home program. According to Prime Minister Emil Boc, the governmental guarantee ceiling will be kept at 60,000 euros for already constructed homes, but will be increased to 70,000 or 75,000 euros for people teaming up to build a new home. The guarantee cap on loans for new homes will be increased. Finance Minister Sebastian Vladescu is sure that these changes to the First Home program will stimulate the construction of new houses. Sebastian Vladescu:
''We will try to stimulate the construction of new homes by introducing a new provision, likely to encourage people to form associations. Therefore, if a group of 10 or 15 people want to build a home, they can team up for this purpose and will obtain a higher ceiling than those who build individually. The guarantee cap for associations will be raised to some 75,000 euros per person and will be maintained at 70,000 euros for natural persons and at 60,000 euros for the purchase of old homes. ''
Managers of construction companies however, believe that the program should focus on the construction of brand new homes, with positive effects on the economy and the labour market. Liviu Mandler, head of an employers' association in the construction sector:
''We call on the Government to lay emphasis, under the revised First Home program, on the construction of new homes, with a view to boosting the Romanian economy. This is a way of stimulating demand on the construction market, and this will positively influence the labour market in the construction sector, which is facing difficulties because of the low demand.''
On the other hand, real estate analysts say that the First Home program has boosted sales on a market on the verge of collapse. The real estate market will never reach the extraordinary levels seen in 2007-2008, representatives of real estate agencies say. Nevertheless, they admit that property prices are closer than ever to their actual value.
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2025-04-03
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