“We are acting on the supply side in order to have a regulatory effect on the housing market because we will make houses available at a price around 30% below the market value”, said the Secretary of Equipment and Infrastructure, Pedro Fino.
The minister was speaking during a visit to a piece of land in Funchal, where 55 dwellings will be built under the Casa Própria Programme, already approved in a regional legislative decree, which aims to promote housing through the construction regime at controlled costs.
The program provides for a set of incentives to be granted to housing cooperatives and real estate developers for the construction and rehabilitation of properties for economic housing and subsequent sale at “prices adjusted to the effort rate of the middle class and young people at the beginning of their professional lives”.
According to the regional executive, the combination of these incentives will allow the final purchase price to be up to 30% lower than the market price.
Pedro Fino explained that, in relation to the 55 dwellings project, the land will be given to the private developer for an investment estimated at around 10 million euros, with the support of a subsidized credit line and reduced VAT.
“We will also contribute 50% of the deposit [input value] to the buyer,” he said, indicating that the average price of houses should be 160 thousand euros.
The regional secretary for Equipment and Infrastructures said that the executive would soon present a new project for the construction of another 200 dwellings, under the Casa Própria Programme, also in the municipality of Funchal.
Utter hogwash! Someone, the taxpayer, will have to fund this 30% discount, including people who pay tax and can't afford to buy property themselves. Why should we have to pay more tax to subsidise someone's property purchase? The best thing the government can do is stay out of real estate, as their intervention usually leads to a worse outcome than the initial situation.
By Billy Bissett from Porto on 01 Sep 2023, 11:50