ΟΑΕΔ: how beneficiaries will get “cheap housing”, which gives the “rent-to-own” model

The ΟΑΕΔ plan provides funding for housing for workers and youth in the total amount of 1 billion euros. The government is seeking, through new tools such as partnerships with the private sector, to buy up new homes and make them available to beneficiaries, young people and couples starting out in life, for nominal rent and low or no interest loans.

For these actions, a reserve of 1 billion euros will be used, which was collected by ΟΑΕΔ (from the accounts of the former OEK, the housing organization of workers, Greek Οργανισμός Εργατικής Κατοικίας), the universal successor of which is currently the employment agency, reports ethnos.gr.

The resumption of the ΟΑΕΔ housing policy, which has been “frozen” for almost 10 years, is, among other things, renting on its own model (lease agreement for a certain period of time and the possibility of redemption before the end of the lease term).

A long-established model abroad aims to make it easier for workers who cannot immediately pay the full amount needed to buy a home and do not have access to bank loans.

Thus, they pay the rent, which they agree with ΟΑΕΔ, while maintaining the opportunity to purchase the property they rent in the future (at a predetermined time and at a reduced price), having received an interest-free loan.

In particular, a participant in the ΟΑΕΔ New Housing Policy Program will be able to:

• Lease your plots for housing development under the ΣΔΙΤ programs with individuals.
• Buy suitable plots on which the property will be built.
• Provide houses to the unemployed or young people at low rents, so that after a few years, under certain conditions, the house passes to the tenant under the “rent to own” method.
• Get housing subsidies.
• Continue subsidizing mortgage interest rates.
• Subsidize the purchase of the first home.
• Refurbish existing buildings so they can be accessible to workers.

It should be noted that in Greece, despite high rates of homeownership, 37% of the population spends more than 40% of their income on housing costs. In Europe, this figure is much lower. One in three Greeks have housing-related arrears.

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