Grmoja criticized Štromar: The haphazardly adopted law makes real estate even less attainable

The political secretary of Most, Nikola Grmoja, assessed on Tuesday that the Law on Amendments to the Law on Subsidizing Loans, which led to an increase in real estate prices, was adopted haphazardly. He conveyed to the Minister of Construction and Spatial Planning, Predrag Štromar, that instead of helping with the purchase of real estate through subsidies, all he has achieved is that this law makes it even less attainable.

“The haphazardly adopted Law on Amendments to the Law on Subsidizing Loans has led to the expected consequence – an increase in real estate prices. Based on previous experience from the application of similar laws, real estate prices remained high even after the distribution of subsidies,” warns Grmoja in a statement.

He asked what the purpose of this law is if it does not help citizens in the long term.

>>> Štromar: Young people, start gathering documents for subsidized housing loans

Stating that the ruling party constantly warns about the importance of demographic renewal and reducing emigration, Grmoja asserted that Minister Štromar “conveniently forgets to emphasize that only those who have money, are employed with a permanent contract, and are creditworthy will be able to buy apartments.”

“In other words, the minister has conveniently shaped the subsidy into a measure that only seemingly brings benefits to citizens,” Grmoja stated.

He reminded that during the discussion on the Law on Subsidizing Housing Loans, Most proposed co-financing of the monthly installment or annuity in the amount of 50 to 85 percent. However, he notes, according to these amendments to the law, which are primarily aimed at stopping emigration from underdeveloped areas, users in Zadvarje, Orahovica, and Sisak will achieve 39 percent of the installment, while those young people who decide to stay in Gospić, Delnice, Vinkovci, and Požega will achieve 36 percent of the loan installment amount, and Osijek only 33 percent of the loan installment amount.

“The goal is not to create partial measures, but a comprehensive family and housing policy. This way, the incentivized housing construction is purchased by those who have money, who are creditworthy, who have the ability to contribute their own share, and in addition, the provision prohibiting the sale of the apartment has been removed even though there is a public interest and public money has been invested,” Grmoja warned. He also added that throughout Croatia we have a situation where we have POS, but insufficiently developed communal infrastructure, and other necessary amenities, proximity to parks, kindergartens, and schools that are urgently needed by young families.

>>> Štromar: We need to reduce costs for employers so they can offer higher wages to workers

“In other words, access to purchasing real estate is still hindered, which does not have appropriate amenities nearby and is permanently becoming more expensive in the end. Minister Štromar, instead of helping with the purchase of real estate through subsidies, all you have achieved is that your law makes it even less attainable,” Grmoja stated.

The Minister of Construction and Spatial Planning, Predrag Štromar, called on Tuesday all those interested in subsidized housing loans for young people to start looking for apartments, gathering documentation, and obtaining building permits if they have decided to build houses, so they can be ready for the competition that will be announced at the beginning of September.