The Minister of Public Finance, Darius Vâlcov, has proposed modifying the “First Home” (Prima Casă) program so that those who have already purchased a home can buy a larger one, provided they sell the first. Real estate specialists believe this measure would be beneficial for the real estate market, but they do not expect a significant increase in the number of acquisitions.
Antoanela Comșa, general manager of West Development, part of the Gran Via group, is of the opinion that “currently, the main difference between a mortgage loan and First Home is the value of the down payment, and anyone who already has a house and wants to sell it to move into a larger home can apply directly for a mortgage loan, given that they will certainly have the down payment from the sale of the first house. In conclusion, it is debatable what impact this measure will have, but I do not think it will boost sales of new homes.” However, specialists expect a slight increase in the purchase of new apartments, as there is a lot of construction in the market, and developers’ offers are adapted to meet the conditions of the First Home program.
Through the First Home program, 130,000 properties were purchased, of which 69% are homes built before 2008 and 31% are new homes, according to data provided by the National Credit Guarantee Fund for SMEs, the institution that manages the state guarantees granted through this program.
Source: Imobiliare.Net
Frequently Asked Questions
What is the main change proposed for the First Home program?
The proposal allows current owners who bought through the program to purchase a larger home, provided they sell their existing property.
Why are experts skeptical about the impact on new home sales?
Experts believe that those selling a home will already have the necessary down payment for a standard mortgage, making the First Home program less essential for them.
What is the share of new homes in the First Home program?
Out of 130,000 properties purchased, approximately 31% are new homes, while 69% were built before 2008.