Homebuying incentives encourage property purchases
Eglė Karalienė, sales manager of the private townhouse development Angelavos Vilos, points out that homebuyers may have the opportunity to take advantage of leasing or receive state financial support. According to her, for a significant number of buyers in the Klaipėda region, these are the factors that will allow them to buy their own home.
„Young people are not always able to buy their first home on their own, which is why we always remind our clients about the possibility of obtaining incentives. The location of the project and the house being built must meet all the requirements to qualify for state support, which can range from 15% to 30%. We also offer the option of buying a home through leasing, i.e., we help you choose the most convenient and appropriate down payment intensity and period, which can be up to 2 years, depending on your wishes and capabilities. The final price includes all the money paid, and once the construction and finishing works are completed, clients can apply to the bank for a loan and the property is handed over to them,“ says the MKF representative.
E. Karalienė adds that not everyone takes advantage of the benefits offered by the state, national banks or credit unions.
„We notice that young people are often not yet familiar with state support or banks, and it is difficult to understand some of the documents, which is why the information is often misinterpreted, and the opportunities remain unused,“ says E. Karalienė.
The number of settlers in the Klaipėda region is increasing
Klaipėda region municipality reports that the region's population is growing every year. There is a trending increase in the population not only due to the birth rate but also due to the number of settlers. In 2020, 928 building permits were issued, compared to 1,104 last year. This year, 89 building permits have already been issued in the first few months of 2022. The region's suburban subdistricts – Sendvaris and Priekulė and the areas around Gargždai – are expanding fastest.
Municipal representatives share that Klaipėda region residents are increasingly applying for financial incentives to buy their first home in the region. In 2021, the Klaipėda region municipality received and processed 1,252 applications from residents, compared to 935 in 2020.
The desire to own a home has doubled
Dovilė Kalvaitienė, product manager of the Financial Services Development Department of Šiaulių Bankas, reveals that compared to 2020, Šiaulių Bankas has seen an almost twofold increase in the number of contracts for housing loans.
„We are indeed seeing a significant growth, but we have to keep in mind that the year before last, after the first quarantine was announced, the volume of real estate transactions dropped drastically due to the uncertainty and only fully recovered in the second half of the year,“ says D. Kalvaitienė.
According to the Šiaulių Bankas representative, various reasons encourage someone to purchase their own property. She notes that the quarantine has created a desire for people to change their residence, while rising rental prices have forced them to buy a home without waiting for anything.
„The demand for rehousing had especially increased after the lockdown when people spent more time at home and realised that their existing home was too small, uncomfortable, and did not meet the needs of their family and that it was time to move. I could also single out the rise in prices – as rents start to rise. Salaries do not catch up. Clients start to consider more whether it is worth it to continue renting the property and pay the ever-increasing rents or to buy a property, knowing that although the interest rates may fluctuate, the amount of the loan itself is not going to change over the term,“ D. Kalvaitienė explains.
Banks and credit institutions that provide housing loans partially reimbursed by the State in Klaipėda region municipality:
– Kretingos Kredito Unija;
– Šilutės Kredito Unija;
– SEB;
– Swedbank;
– Luminor.