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PROPERTY

How Germany wants to make it easier for families to own a home

Germany is launching a new loan programme to help families get on the property ladder. Here's what you need to know.

Published: 25 May 2023 13:00 CEST
Updated: 28 May 2023 08:24 CEST
Homes being built in Stuttgart.
Homes being built in Stuttgart. Photo: picture alliance/dpa | Sina Schuldt

Although Germany is known as a country of renters – in 2021 more than half the population (50.5 percent) lived in rented accommodation, the highest share in the EU – many people are choosing to buy their own property. 

And the German government wants to make this move easier for families with children. 

In June, a new subsidy programme called Home Ownership for Families (Wohneigentum für Familien or WEF) is set to launch. It replaces the Baukindergeld system which saw families being able obtain a building permit or buy a property. Through that programme, families could receive a subsidy of €1,200 per child per year over 10 years.

The government said that in 2020 alone, 175,000 families took advantage of the Baukindergeld programme.

READ ALSO: Everything that changes in June 2023

What is the WEF?

At the beginning of the year, Housing and Urban Development and Building Minister Klara Geywitz (SPD) announced that a new property subsidy for families would launch in 2023. However, unlike Baukindergeld, the WEF subsidy is not a grant. Instead, families will receive a low-interest loan.

What will be subsidised?

The ‘Home Ownership for Families’ programme provides funding for the construction or initial purchase of a climate-friendly residential building. People can apply for a loan for the following costs to be subsidised in a residential unit:

  • Construction costs,
  • Costs for specialist planning, construction supervision, sustainability certification
  • Material costs for personal contributions

Families with an annual income of up to €60,000 can apply for a loan from the KfW bank. For each additional child under the age of 18 living in the household, the annual income can be €10,000 higher (so €70,000 with two children, for example).

The government is ploughing in €350 million per year into the project. Applicants can receive a maximum loan of up to €240,000.

The loan applies to new buildings or first-time purchases that meet at least the Efficiency House 40 standard, but not to existing properties. Germany does offer some grants for renovation measures in these cases. 

Reader question: How do I install a heat pump in Germany property?

Applicants must live in the properties themselves, they must be the owner and they cannot have claimed a previous Baukindergeld subsidy.

Anyone interested in the programme should wait until it has launched and all the details are on the table before going ahead with any projects. The subsidy has to be applied for before a delivery, service or purchase contract is underway. 

READ ALSO: What to know about mortgages and fees when buying property in Germany

According to the government, the home ownership subsidy is intended to provide an incentive for the “creation of energy-efficient, high-quality residential property in new buildings”.

What are the interest rate conditions for the WEF subsidy?

The exact interest rate conditions for the programme have not been announced. However, it is known that the subsidy will be granted exclusively in the form of a low-interest subsidy loan and that there will be no direct grants or repayment subsidies. The Housing Ministry is aiming for an interest rate reduction of 2 to 4 percentage points.

The initial interest rate is expected to be announced shortly before the start of the programme.

When will the WEF subsidy start?

The programme is scheduled to start on June 1st, 2023.

How many people own a home in Germany?

According to Statista figures, in 2022 just under 29 million people lived in a house they owned in Germany, 36.9 million rented, while 4.62 million lived in shared accommodation.

READ ALSO: Ask an expert: Is now a good time to buy property in Germany?

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FAMILY

How to find mental health resources in Germany for children

As mental illnesses and behavioural disorders among children and teenagers continue to rise, it can be difficult for international parents in Germany to know where to find resources.

Published: 19 April 2024 16:17 CEST
How to find mental health resources in Germany for children

Whether it’s school stress, adjusting to a move abroad, low self esteem, a personal crisis, hormonal changes or family issues, there are plenty of things that may make it hard for young people to cope with everyday life. 

A survey screening child anxiety disorders, found children in Germany ages 11 to 17 with symptoms of anxiety more than doubled over the course of the pandemic from under 15 percent before the pandemic to nearly a third of children surveyed exhibiting symptoms in January 2021. 

And social media has only added to the problem. According to a recent DAK study, media addiction among children and young people in Germany has nearly tripled from numbers before the pandemic. 

Girls and boys with heavy social media use reported more depressive symptoms, anxiety and a higher level of stress than children with less media usage. The parents of the affected children and young people also reported more dissatisfaction with communication within the families.

While Germany has a large capacity to care for mental healthcare patients, it can still be tough to find resources for children, especially if there’s a language barrier. Here’s a guide to finding mental healthcare for children and youth in Germany:

Is mental health care covered by insurance in Germany?

Yes, Germany’s state health care system covers mental healthcare. Statutory health insurance currently covers nearly 90 percent of the population. This insurance gives residents access to consultation with a psychiatrist, therapy, in- and outpatient care, emergency mental health services and medication. 

READ ALSO: How to receive help for a mental health issue in Germany 

Where should you start?

Parents should start by reaching out to their children’s paediatrician or family doctor. After explaining how your child is doing, they will likely refer you to a child psychiatrist to further evaluate treatment options. Treatment can include prescribing mediation, talking therapy, or a combination of both. You can also directly set up a consultation with a mental health professional for your child.

Insurance type, public or private, can also impact the type and availability of services. Public insurance covers fewer practitioners, meaning you may have to cover the cost of therapy for your child upfront and wait to be reimbursed.  

Whether you have public or private insurance can impact the type and availability of services. Public insurance covers outpatient psychotherapy, but patients must meet specific requirements for coverage. Doctors can also write a letter that parents can submit to their health insurance to access up to six therapy sessions, with the possibility of extension. 

Families using public insurance may also have longer wait times. Nearly half of all patients must wait three to nine months before receiving care, according to Germany’s Federal Chamber of Psychotherapy. 

A school girl at a Leipzig school. Photo: picture alliance/dpa | Hendrik Schmidt

This problem is worsened because public insurance does not cover all mental health professionals. Practitioners must have a ‘Kassensitz’ licence to bill public health insurance. These licences are regulated by the government and are limited. The cost of this licence, along with the waiting time for it, is often a deterrent to some practitioners. 

Another option could be to talk to your child’s school. Some schools employ social workers and psychologists who can screen and provide resources to children. These professionals can screen young people who exhibit symptoms of mental and emotional distress or hyperactivity in the classroom. They can also refer you to additional resources for more specialised treatment. 

What mental health resources are available?

As of 2022 there were more than 55,000 child and adolescent psychologists working across the country, according to data from the German society for psychiatry and psychotherapy, psychosomatics and neurology (DGPPN). The majority of these health professionals work in outpatient facilities, and the remaining 15 percent work in inpatient or day-care facilities. 

Germany has 274 mental health hospitals, 401 psychiatric units across general hospitals and 63 mental health outpatient facilities, according to the UN’s 2020 Mental Health Atlas. The country also started granting more specialist titles, including in child and adolescent psychiatry, in 2022.

Germany has also launched a helpline called “Nummer gegen Kummer” (number against grief) to support children facing mental health issues, whether it’s to do with getting bad grades or dealing with unrequited love.

READ ALSO: ‘Being honest helps’: How expats have overcome loneliness

The free help line – which is accessed by calling 116 111 – is active Monday to Saturday from 2pm to 8pm daily. Children can anonymously speak with volunteer consultants who range from the elderly to students ages 16 to 21. It is important to note that this resource is intended for children comfortable speaking German at an elementary level.

Other resources to consider include:

  • Online directory Therapy Route features English-speaking psychologists and social workers across Germany
  • It’s Complicated connects users to in-person or virtual therapeutic care based on your language and insurance type
  • Online directory Therapie.de lists around 600 English-speaking therapists currently working in Berlin, 150 in Frankfurt, around 230 in Hamburg, and 240 in Munich
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