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State Flats on 30-Year Instalments at 4 Percent Interest - but Not for the Poorest: They Only Get to Rent

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State Flats on 30-Year Instalments at 4 Percent Interest - but Not for the Poorest: They Only Get to Rent

People who have lived for decades in state-owned flats may get one more chance to settle their status. Proposed amendments to the Housing Law open a new window, until 31 December 2027, to apply either to buy or to rent. They apply to occupants with a decision or contract signed before 16 May 1998, as well as to certain family members of deceased right-holders.

What's new is that everyone is split by income into four categories. And the first line is the harshest: people receiving social assistance or permanent financial aid have no right to buy. Only to rent - rent-free for as long as they keep that status. So the poorest will be able to stay in the flat, but never become its owners. At least not while they're poor.

The price of renting and buying

For households earning up to one and a half average net salaries, rent would be 25 or 35 denars per square metre. For those between one and a half and two and a half average salaries, 62 or 95 denars. Above two and a half average salaries, 190 denars per square metre. For a 60-square-metre flat, that's a range of 1,500 to 11,400 denars a month (roughly 25 to 185 euros).

Purchases could be paid off over up to 30 years, in a maximum of 360 monthly instalments, at a fixed annual interest rate of 4 percent. The down payment isn't the same for everyone: at least 5 percent of the flat's value for the lowest income category, 20 percent for the middle and 30 percent for the highest. There are conditions: citizenship, residence in the municipality, not using another state flat or business premises, and having occupied the flat since before 13 August 2009. Authorities will also check whether the household owns a flat, house, holiday home or business premises.

When the deadline expires

Anyone who doesn't apply by the end of 2027 gets an extra deadline until 31 March 2028. After that comes forced eviction. Eviction also follows if an application is rejected and no new one is filed within 30 days.

So how many people are actually affected? The state company that builds and manages residential and commercial property has no official figure for occupants of state flats who never settled their rights, nor for flats repossessed on that basis - explaining that their status keeps changing. Construction expert Nikola Velkovski warns that the flats must not become a resale business, and that many of them are in old buildings from the 1990s, some without a lift.

In other words, the state knows exactly when it will evict someone, but doesn't know how many people it might evict. Is this law being written for people, or for a spreadsheet nobody has filled in?