One year ago, we wrote about the government’s suggestion on January 18, 2016, to follow the example of the English “building society”, the establishment of a state housing savings fund (National Home Creation Community). Of course, this would also make home savings a competitor.
Government pays special attention to the housing market
As the government pays special attention to the housing market, it wants to encourage the construction of new homes with this new method. In their view, this is why national home savings are needed because old homes have barely built new homes.
The government justified its dissatisfaction with the savings plans by saying. “It is still acceptable that when the economy goes down, there are fewer homes being built in Hungary, so people do not take money out of apartment savings to build homes, but when the economy goes up and then there is no change, then this has to be changed . “
Since then, of course, a year has passed and housing construction has begun, but it may not hurt to give the market another boost.
How is the National Home Savings designed?
NOK will have a narrower usability compared to traditional LTP, as it is planned to be used only for the construction and purchase of a new home, while the maximum term would be 10 years as for LTP. However, the state interest subsidy of 30% used by LTP would not be limited to HUF 72,000 per year.
This is a big difference, but for the time being, flat savers are not touched by current communications, but if no one wants NOK, it may be necessary to give NOK some advantage at the expense of LTP.
What would be the music of the future?
Will and if so what impact will have?
There has been no significant advance in the introduction of NOK in the last year, so the real intentions with this form of financing are a big question. Here, if you get the same amount of support for a savings deposit in NOK, it only makes sense to open a NOK account with or instead of LTP if the home-saver doesn’t make more money in LTP because he can’t open more contracts .
The maximum of 72,000 HUF can be used multiple times for a flat apartment saving, so a family of 4 could use at least four times that amount. Now, market rumors have intensified again that perhaps this LTP discount will need to be modified to be abolished for NOK to succeed.
And, to add to the truth, the layer that sets aside 80,000 forints is still relatively tight, so the number of LTP contracts that can be combined is not the savings limit.