Tips for the subsidized construction loan.
The promotion of residential is also called home rent. In principle, condominiums, houses or cooperative apartments can be funded. If you are considering this form of financing for your home loan, you can use residential in two ways:
Either the capital flows into an asset accumulation intended for purchase or the capital from the residential is used for the repayment. Deductible and only when payment is made are taxes levied on the residential subsidy.
The advantage of funding:
In addition to the savings that are paid into the contract, savers and holders of the contract also receive allowances. As of 2018, the basic allowance is 175 USD.
The allowance for families will be increased significantly. For a child (born before 2008) the child allowance is 185 USD. There is a child allowance of 300 USD for all children born and born from 2008 onwards.
- As long as you receive child benefit, you will receive the child allowance. As with child benefit, you will receive the money up to your child’s 25th birthday if they are studying or studying.
Pension that can be taxed, but your own property.
For this reason, a housing grant account is set up. The repayment and savings payments that have been funded are recorded annually on withdrawals or payments. This account forms the basis for taxation as soon as you reach retirement age.
It is considered harmful use
Canceling, not using the money for its intended purpose, renting or selling the acquired property, this is considered ‘harmful use’.
- In the event of harmful use, all funding amounts, i.e. all tax benefits and all allowances, must be repaid.
Added to this is the subsequent taxation of interest earned. According to tax law, they fall into the category of other income, because with the residential the exemption from the flat-rate tax also applies to contracts terminated early.
However, exceptions are made in certain circumstances:
This applies to:
- a rental due to professional absence
- the intended resumption of self-use (e.g. limited lease)
- a reinvestment of the proceeds in owner-occupied housing.
If you use the funding amounts to buy a property that you want to use yourself, this is not considered harmful use.