Buy a House, buy a Flat
In order to help those who have not yet acquired their own home or residence, the Government of the Republic of Macedonia, via the Ministry of Finance, initiated the implementation of two projects. These are the so-called Fifty – Fifty shared installment for the first five years and 50% Participation for the purchase of an apartment or the construction of a house.
The first project will subsidize half of the monthly installment for a period of five years, for a loan of maximum 50.000 Euros intended for the construction of a house or purchase of an apartment. If the loan exceeds 50.000 Euros, the subsidy will not cover the exceeding amount. Also, when purchasing an apartment, the sales price (VAT included) must not exceed 900 Euros per square meter. The annual interest rate in the first three years must not be higher than 4, 99 per cent.
The subsidies for installments will be considered as non refundable, meaning that after the expiry of the period during which the state covers half of the installment, the beneficiary will not be obliged to reimburse. The funds can both be used for the purchase of a new apartment / house and the purchase or construction of a bigger apartment / house through sales of an existing apartment / house.
In the two years following the expiry of the three year period, the credit interest rate will not increase for more than 10 per cent, reaching an annual 5,5%. The subsidies for monthly installments will be paid to banks one year in advance. The deadline for reimbursement of loans cannot be less than 20 years.
With the second project, the Law on subsidizing housing loans enables the state to cover 50% of the participation for housing loans. The remaining 50% should be provided by the buyer. The participation amount must not exceed 50.000 Euros. If the loan is higher than 50.000 Euros, the subsidy will not cover the exceeding amount. If the loan is intended for the purchase of an apartment, the sales price (VAT included) must not exceed 900 Euros per square meter. The deadline for reimbursement cannot be less than 20 years, and the interest rate should be lower than EUROLIBOR + 4, 5 %.
Beneficiaries will start reimbursing the funds allocated from the budget of the Republic of Macedonia after 20 years, no interest rate, in five equal annual installments.
The prerequisite for using funds from this program is to buy a newly built apartment / house, with all the necessary documentation (deeds, construction licenses and permits); to buy it directly from the investor or contractor; the beneficiary or his/her spouse must not already be homeowners and this should be certified with a statement under material and criminal liability; beneficiaries should be able to sell their own apartment in order to build a house; beneficiaries and their souses should not have other loans to reimburse; joint earnings of beneficiaries and their spouses should not exceed 900 Euros per month.
These projects will be implemented in cooperation with banks, and the contracts concluded will foresee a ban on leasing the real estate, a ban on using the real estate as collateral and an obligation for submitting the new address of residence within 15 months as of the day of conclusion of the sales / purchase agreement.
The aim of the Government is to improve the living standard and help citizens who are about to purchase a house / apartment and thus solve their housing issue for the first time, especially young people and young couples.