balearic Government Tackles Housing Affordability with New Initiatives
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Teh Balearic Government is actively addressing housing affordability through the launch of two key programs: the ‘Mortgage Ibavi’ program and the ‘Safe Rent Plan’. These initiatives aim too provide financial assistance to prospective homeowners and increase the availability of secure rental properties.
‘Mortgage Ibavi’ Program: Aiding Young People and Families
José Luis Mateo, the Minister of Housing, Territory and Mobility, announced that the ‘Mortgage Ibavi’ program is on the verge of launching. This program, reviewed by the Consell de Government two weeks prior, is designed to facilitate mortgage access by covering 15 to 20 percent of the property value.
The program specifically targets young people, large families, single-parent families, and people with disabilities. Mateo, along with Gabriel Torrens and Cosme Bonet, highlighted the program’s intent:
Young people can have a salary but initially have little savings capacity, so what better to provide them with as much as possible so that they can access a home.
Managed by the Balearic Institute of Housing, ‘Mortgage Ibavi’ intends to cover up to 20 percent of the property value for eligible applicants under 40, large families, single-parent families, and people with disabilities. For other applicants, the coverage extends to 15 percent. The Government has partnered with CaixaBank, Colonya Caixa Pollença, and Cajamar for this initiative. Mateo emphasized that the implementation of the project is “imminent.”
According to the head of Housing in the Balearic Government, the conditions of the plan are “negotiated and agreed,” providing an prospect for young people to secure Ibavi endorsement for “one hundred percent of the acquisition.” Accessing the program requires utilizing the associated banking entities, where “from the entity itself the documentation with the Ibavi is managed.”
‘Safe Rent Plan’: Guaranteeing Security for Owners and Tenants
Along with mortgage assistance,the Department of Housing is also focusing on the rental market through the ‘Safe Rent Plan’. This pioneering project aims to encourage owners of vacant properties to enter the rental market by offering security and guarantees.
The ‘Safe rent Plan’ also intends to provide “security to the tenants.”
José Luis Mateo acknowledges the concerns of property owners:
We are aware that there are many property owners who do not enter the rental market for fear and legal insecurity that exists.
He emphasizes the importance of legal certainty, stating that it “exists when you can have a problem and you can go to someone to solve it.” The Executive aims to launch a ”pioneer” measure where the Government “is not only offered as a protective guarantor, but is an active part” in the operation. Mateo clarifies that “the landlord rents the property to the autonomous community, and the tenant is rented to the autonomous community.”
Through the ‘Lloguer Seguro Plan’,the government aims to “guarantee that the lessor charges the established amount” and “that the property will recover in the conditions that put it for rent.” To prevent speculation, “we establish the maximum price of 1,500 euros,” contributing “security to both parties,” according to the Minister.
Public housing Commitment
José Luis Mateo has explained the main housing guidelines of the Government, emphasizing the will of the Executive to create more public housing:
The construction of public housing is one of the essential pillars on which our policy is built as we are talking about the great challenge we all face and, in this direction, we continue with public housing, but also that it is indeed essential to have other paths that lead us to solve the problem we are.
As of early January 2025, the “Secure Rental” program, launched in November of the previous year, aimed to incorporate 2,000 homes into the rental market. However, it faced initial hurdles, with documentation processes taking longer than anticipated, according to Bernat Seguí of the balearic Association of Property Administrators (CAFBAL).
key Takeaways:
- ‘Mortgage Ibavi’ program offers financial assistance for home purchases.
- ‘Safe Rent Plan’ encourages property owners to enter the rental market with government guarantees.
- The Balearic Government is committed to increasing public housing options.
Balearic Government’s Housing Initiatives: Yoru questions Answered
The Balearic Government is tackling housing affordability with innovative programs aimed at assisting both prospective homeowners and renters. This Q&A provides a thorough overview of these initiatives, offering clarity and actionable insights for those looking to navigate the Balearic housing market.
Understanding the ‘Mortgage Ibavi’ Program
What is the ‘Mortgage Ibavi’ program and what does it offer?
The ‘Mortgage Ibavi’ program is a Balearic Government initiative designed to help individuals and families access mortgages. It works by covering a percentage of the property value, specifically 15% to 20%, thereby reducing the initial financial burden on the buyer. This program is managed by the Balearic Institute of Housing (Ibavi).
Who is eligible for the ‘Mortgage Ibavi’ program?
The program targets specific demographics:
Young people.
Large families.
Single-parent families.
people with disabilities.
Eligible applicants under 40, large families, single-parent families,
