Is Austrian Real Estate a good place to be invested in?
Austria has a stable political and economic framework, when combined with low interest rates and available financing, and favourable demographics, real estate in Austria is attractive to foreign and local institutional and individual investors. Planning and zoning regulations are generally strict, they are regulated by the provinces and in certain instances between the respective communities within these provinces, reducing the risks of oversupply. There is no inheritance tax in Austria.
A Q&A session with Oliver Daske of AURUM ALPS INVEST.
We have seen Aurum Alps Invest are offering a fabulous range of new-build properties in the Tirolean Alps. They look ideal for skiers and mountain lovers in the summer, could you please explain the general concept and its attractions for investors.
With pleasure. Investment in tourist real estate in Austria has been a growing market for years and has many advantages. At the moment, returns of 4%-6% can no longer be taken for granted, so the motivation to invest in your own property becomes a greater incentive. In the projects we offer, investors can acquire apartment complexes or holiday homes in order to achieve attractive income through short-term rental.
In a nutshell:
- SECURED VALUE AND FAVOURABLE INCOME
- AS A PENSION PROVISION
- FOR RENTAL AND OWN USE
- THE PROSPECT OF CAPITAL GAINS
- PROTECTION AGAINST INFLATION AND MONEY CREATION
- ATTRACTIVE RETURNS
Will I own the freehold title to the property?
Yes, the property is 100% yours. You acquire contractual title which is entered into the land registry.
What is the rental program and who will manage it?
This is all taken care of as part of the package. The property management looks after all the maintenance of the property; the rental management takes care of the tourist use to ensure occupancy is maximised in the key seasons and throughout the year.
Can I use it as well, how much, and do I have to pay?
The possible personal use and the costs for this vary from state to state. In general, one can say that about 4 weeks a year is a realistic average. The discount for the owner is 20% to 50% off the standard rates, depending on the dates and seasons according to the terms of the rental management contract.
What are the rental returns I can expect?
Generally speaking, a return of 4% to 6% is achievable for these projects. This always depends on the price of the land, the construction costs and expected tourist occupancy in the region. The distribution is made 1 to 4 times a year, depending on the rental management. When making calculations, you should always consider the ancillary purchase costs and whether there is a fixed or a flexible return.
Who can buy these properties; can a company also own them; and can you help me arrange a mortgage?
Every European citizen is allowed to purchase real estate in Austria. EU registered companies can also invest in Austrian property, subject to ownership structures.
Of course, we accompany our customers from the inquiry right through to the purchase, and beyond. This can also include introductions to and working alongside reputable institutions when it comes to financing.
Can I buy more than one?
Yes, and this is often the case. A single investment in multiple units saves time and money, and it automatically increases the return.
In case I needed to sell it, are there any restrictions and tax implications?
You are free to sell at any time, it is important to know that the new buyer must take on the rental contract. Furthermore, there are no restrictions on the resale of a holiday property or a chalet in Austria. The property can be sold and inherited again at any time. Income from the management of real estate is subject to taxation in Austria. The additional proceeds compared to the purchase price must be taxed.