Tax on real estate trading will be returned, and new student dormitories will be built to free up apartments in large cities

You own a flat, but you wouldn't rent it out in the long term because you're scared of what kind of damage your sub-tenants might leave behind? Don't worry, you can give the state responsibility for your flat for three to ten years, and it will 'rent' the flat on your behalf, pay you a 40% higher amount than what your sub-tenants pay you, and also commit to returning the property in the same condition it was in, as reported by Večernji list. In terms of sub-tenants, they will pay for rent and utility bills that do not exceed 30% of their income, they will apply for an apartment and get one that corresponds to the size of their household, and the rent that goes to the state will be moderate. Ten euros per square meter if we're talking about Zagreb, the cost will be different for each local unit, and if it's still not clear to you what I'm talking about, let's take a flat of 65 square meters as an example, which the aforementioned owner wants to give the state to rent. If the owner and the state sign a six-year contract in this public-private partnership, the owner of the flat will receive 42,000 euros over two installments, while the sub-tenants will pay something less than 25,000 euros for rent over the same period. Or, let's break it down to monthly payments - the owner of the 65-square-meter flat will earn 583 euros per month, the sub-tenants will pay 350 euros, and the state will make up the difference. Owners who opt for this model of rental are convinced by the Ministry of Spatial Planning, Construction, and State Property, despite the fact that the same flat of 65 square meters can earn up to 850 euros on the market, because the flats are currently empty and not rented out. This model of affordable housing, as explained by Minister and Deputy Prime Minister Branko Bačić in presenting the National Housing Policy Plan of the Republic of Croatia until 2030, is supposed to start operating in the spring of the following year, and the Agency for Legal Transactions and Property Mediation (APN) will be responsible for all the houses that owners give to the state for rent. It has to be that way, Bačić explained, adding that this housing plan is the first significant document on housing since Croatia's independence, as living in a home has become almost impossible today. - Investing in real estate has become a form of saving for citizens, they buy flats and houses in Croatia with cash, and property prices have risen due to the energy crisis. We have reached the point where 40% of the country's total housing fund is not used for housing. We are talking about 958,000 flats, of which 231,000 are in short-term rental, 132,000 are used for various activities, and 595,000 are simply empty flats - Bačić said, adding that the International Monetary Fund has estimated that Croatia is currently missing 232,750 apartments, while the Economic Institute has estimated that we need 236,731 units. Eurostat's data is also disheartening, according to the minister - Croatia has an overpopulation rate of 34.4%, and the average number of household members in our country is 2.67, which is the third highest in the EU. Of course, he also mentioned that we are, along with Portugal, the country where children stay with their parents the longest - they leave it at the age of 33.4. -The current situation is such that properties have become unaffordable. It's telling us the affordability index we've calculated, which is the ratio of annual income and the average price of a flat. In Dubrovnik, for example, a Croat can afford three square meters with their annual salary, in Zagreb six, and in Vukovar 21. The basic goal of the National Housing Policy Plan will be affordable housing, and that means a situation where a household spends up to 30% of their income on rent and utility bills - Bačić explained. Affordable rent, which we broke down at the beginning of the text and which will be intended for families with income above the poverty line (social welfare categories will be handled otherwise), is one way to achieve sustainable housing. It's estimated that this will involve 9,000 apartments. In addition to this, the state will provide 1,200 of its own properties, as well as those owned by public and state companies (such as Croatian Railways or the State Institute for Pension Insurance). Through POS programs, 8,000 apartments will be built, of which half will be sold and half will be rented out through the affordable rent model. The tax on real estate trading for the purchase of the first flat or house will be returned, new student dormitories will be built to free up housing capacity in large cities, the operations of non-profit housing cooperatives will be encouraged, and a revolving fund will be established to finance long-term housing projects and affordable rent. A total of 1.2 billion euros will be allocated for all of this. New taxes and laws And the laws, as well as taxes, will be changed, such as the tax on real estate, which is already in the process. All of this will not only apply to large cities but also to rural areas. How they will try to resolve the issue of how landlord and tenant will treat each other on the market is not yet clear, and when asked why owners would give the state their flats to rent at a price lower than the market rate, especially since market rents can increase over time, Minister Bačić replied that they are hoping for stabilization of the rent prices. Taken from: Poslovni.hr

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