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

 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