KIM Ordinance expires: Home ownership for young and old in sight!

KIM Ordinance expires: Home ownership for young and old in sight!

Austria's construction industry and home buyers breathe up! The KIM Ordinance, which has been regulating the banks of the banks since August 2022, will expire by mid-2025. Dr. Susanne Riess-Hahn, General Director of Wüstenrot and Chair of the Business Compass Association Austria, described this step as a gratifying necessity. "The expiry of the KIM Ordinance is a gratifying, necessary step so that people in Austria can create residential property again," emphasizes, referring to the low property rate that Austria has catapulted to the end of the list in European comparison, such as ots reported .

Background of the KIM Ordinance is the protection of credit institutions and consumers against a possible debt crisis. However, critics of the regulation criticize that the strict framework conditions have pushed back a lot of lending, which has made it difficult for many customers interested in the funding to be accessed. Now the question arises: Would an extension of the KIM regulation make sense? According to various supervisors, the pros and cons. The fact that the capital buffer of the banks in Austria is stable against a continuation-the hard capital rate is over 17 percent and thus above the EU average of 16 percent. The risk assessment of real estate evaluation has also improved. The press reported that the overvaluation of residential properties was reduced from 2021 to 2024.