Young people to prepare for changes (The Slovak Spectator)

 The Slovac Spectator publikoval 24.3.2017 článok o zvýhodnených pôžičkách pre mladých ludí, ktoré komentoval Radovan Ďurana a pre SITU

Young people to prepare for changes  (The Slovak Spectator)

 THE STATE-subsidised mortgages for young people under 35 years of age are awaiting changes. The Finance Ministry has proposed replacing the state contribution with a tax deduction, which is in principle similar to a tax bonus.

Since it is only a proposal, the details and specific conditions are not known yet, the SITA newswire reported in mid-February.

The state should cancel the entire system of support of mortgages, opines head of the economic think tank INEKO Peter Goliaš, pointing to the record-low interest rates on the market and a steep rise in mortgages. As a result, real estate prices also increase.

State-subsidised mortgages deform the rental housing market which is more effective regarding the flexibility of the labour market, he added.

The subsidy on mortgages for young people is a payment that lacks a clearly defined aim. Moreover, its definition is broad, which means most young applicants receive it, said Radovan Ďurana, analyst with economic think tank INESS.

As a result, the subsidy increases the demand for real estate, which in case of insufficient supply results in an increase in prices.

"Though young people receive a very low discount on interest, they pay it from a higher sum," Ďurana said, as quoted by SITA.

Spectator Staff
The Slovak Spectator, 24.3.2017

INESS is an independent, non-governmental and non-political civic association. All of our activities are financed by grants, 2% tax allocation, own activities and donations from individuals and legal entities. Thus, our operation, scope and quality of outputs, largely depends on your generosity.
Our
awards
Zlatý klinec Nadácia Orange Templeton Freedom Award Dorian & Antony Fisher Venture Grants Golden Umbrella Think Tanks Awards