Source: The local
We are a property consultancy based in Devon, south west England. We are here for you discuss your property requirments or to come visit us before a trip to Austria. We have been advising and helping clients to purchase property and land in Austria for over 15 years.
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Property and land for sale in Austria
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Studio ski apartment in the Dachstein West ski region.
If you are looking to get a foot on the property ladder in Austria, this could be the ideal small property to invest in.
It is in a apartment Hotel complex, with restaurant, bar and swimming pool…and best of all, the price, 39,950 euros.
Check out our property pages: Studio ski apartment
And then there is tourism… Alpine states such as Salzburg, where tourism is a key industry, could feel a heavier Brexit burden. Nearly one million Brits, mainly winter ski tourists, visit Austria each year. British visitors constitute the 4th largest visiting national group in terms of overnight stays.
So, there will be areas that are affected.
Source: The local
More and more tourists are not booking hotel rooms, but instead going for on-line private accommodation. The case of a Salzburg man has blown up, who is said to have holiday rented his local authority subsidized rented apartment 380 times and, in addition to that, obtained Government benefits!.
Last year in the province of Salzburg. 109,100 guest arrivals were recorded by the online rental platform AirBnB. This emerges from the travel report of the company for 2017 . On average, guests book a room or an entire apartment for 3.3 nights.
Besides reducing available accommodation for locals, many private renters do not pay all their due taxes, tourist tax and vat, so having an advantage over the red tape burdened hotel industry.
This is obviously having an effect on the hotels and consequently local employment.
Hundreds of apartments are rented via online platforms. The local court now sends out its investigators – and also criminal charges to go with the visit!
More and more Salzburgers are making a living by renting their own apartment – and more and more tourists are looking for this alternative to the hotel room.
Internet platforms such as Airbnb or 9flats are booming worldwide, with tourists and apartment owners short-circuiting hotels. If you are looking for an apartment in the city of Salzburg on the classic online platforms, you will quickly find it. From 60 euros upwards per day you are there. The Salzburg Institute for Spatial Planning (SIR) has found in it’s current study on housing vacancies in the capital at least 600 apartments that are offered for a short time on various portals. With one or two mouse clicks you can also find offers of private apartments in large apartment blocks. The problem with this: Many “landlords” do not know that a tourist use according to the Salzburg Spatial Planning Act is prohibited for buildings with more than five apartments. The rental falls under commercial accommodation and is therefore unlawful.
Landlords, who illegally rent their apartment to tourists, must count on penalties of 500 euros plus.
So, if you are visiting Salzburg, perhaps check that your accommodation is legal…you will be helping the city.
Source: Salzburger Nachrichten.
This is the question we get asked a lot. There are lots of scare stories around, but life goes on. Many of our clients want to be in Europe, so maybe they voted to remain? It is not for us to get involved with anyone’s decision on Brexit.
But as far as investment is concerned, many clients also want to run a Guesthouse or have a foothold in Europe. Individual European countries are not going to block their tourism income and Austria is very happy to have British investors buying into Ski projects or a ski/lake chalet. They get an income via local taxes no matter what the nationality of the buyer. Also, there is the knock-on from tourist rentals where a local Gemeinde get approx 1.70 euro per person per night!! Plus tourists eat in restaurant and drink in the cafes & bars.
So, our best advice is to invest where you feel happiest.
Styria, Austria’s automobile manufacturing hub, could benefit from Japanese British-based car makers relocating to the southeast Austrian region. But the southeastern Austrian region could also face its own Stygian nightmare if car supply chains are destroyed in a no-deal scenario.
“The region of Styria has an important position for the economic relationship with the British. Jaguar Land Rover started building cars there in 2017, which has been a tremendous boost to the Austrian economy,” Barbara Kolm, director of the Austrian Economics Institute, told The Local, commenting on the growing car hub around the city of Graz.
“Austria will probably be hit less by Brexit than many other EU member states – the German ifo Institute expects a relatively modest decline of GDP of 0.1 percent because of Brexit,” added Kolm.
Nearly 50 per cent of all Austrian exports to the UK are in manufacturing. And it is Austria’s car industry that is perhaps most exposed to the roulette effects of Britain’s departure from the European Union.
“The only sector that might profit from Brexit is the car industry, especially in Styria,” Barbara Kolm told The Local. “Jaguar Land Rover could outsource even more of its production to Austria after Brexit, and the industry hopes to be able to lure Toyota to Austria as well. Fiat Chrysler has already announced that it will move its production of tractors to Styria.”
But Brexit could also turn out to be a two-edged sword for Austrian car makers. “All of this could just as easily go wrong as well, for example if Jaguar Land Rover instead were to decide to move completely back to Britain in the long run,” added Kolm.
Austria has a trade surplus with the UK and more than 100 Austrian companies are nevertheless active in the UK market – “among them Novomatic, Wienerberger, and Zumtobel,” adds Kolm.
Alpine states such as Salzburg, where tourism is a key industry, could feel a heavier Brexit burden. Nearly one million Brits, mainly winter ski tourists, visit Austria each year.
“Especially during the winter months in the Alpine regions, tourism is of substantial scale and must not be neglected,” Kolm told The Local. British visitors constitute the 4th largest visiting national group in terms of overnight stays.
Seasonal Businesses in Travel (SBIT) is a lobby group of more than 100 British tourist operators, created in response to Brexit, that aims to “increase awareness of the potential impact of Brexit on the UK outgoing travel industry,” through lobbying of “UK and European governments.”
When it comes to financial services however, experts agree that Austria is unlikely to win or lose much in the battle to lure financial services firms from the UK.
Vienna has also emerged as a potential new low-cost aviation hub in light of Brexit. EasyJet announced that it will operate its new airline easyJet Europe out of Vienna. All of the budget carrier’s EU27 aircraft hope to be re-registered at the new hub by March 2019.
Ryanair is also looking to Austria as a post-Brexit stepping stone to the European market, having taken a stake in LaudaMotion, the low-cost airline founded by Austrian former Formula 1 world champion and airline pioneer Niki Lauda, reports The Local Austria.
Beyond the challenges in each sector, Austria’s current coalition government could also be an unpredictable force in the Brexit negotiations.
On July 1, Austria – traditionally a mainstream, moderate, member state – will take over the revolving six-month EU presidency.
Austria is most likely to use its term at the presidency to exert pressure on its neighbours rather than to get any special Brexit concessions, says Grieveson. While Germany is calling for all member states to make a larger contribution to the post-Brexit EU budget and fill the deficit left by the UK’s departure, Austria is reluctant to do so.
With regards to Brexit, the rights of Austrian citizens in the UK and Brits in Austria remain a quagmire issue. More than 10,000 Brits live in Austria, according to the Austrian national statistics agency Statistik. Approximately 25,000 Austrians live in the UK.
Source: The local
What is happening to commercial property market for Hotels and Guesthouses in Austria. Is it dead or just sleeping for now?
Long has it been the dream of many British to own a small guesthouse or hotel in the alps..ski-ing in winter, swimming in the lakes in summer!
Well, with the fears over Brexit and mortgage availability, the market has changed direction. We have found that the dream has not died, just the method of obtaining it.
Our clients are now requesting the possibilities of renting commercial property for a few years to see how it goes..before committing to buying. Our sellers are willing to accept a rental rather than waiting for sale. In many ways this is good for both buyer and seller. The buyer gets to try the lifestyle at a fixed rental and the seller gets a rent for their property…generally sellers are hoping for 4-6% ROI. and hopefully a sale in the long term. This can also work well for the property investor, as buying a commercial property can give them a better return than money sat in the bank!! So if any investors out there would like to buy into a business property with a guaranteed rental income…please let us know!
Is Brexit affecting the Austrian proeprty Market…this is a question we get asked a lot. From the UK buyer point of view it can be worrying to invest in a market that perhaps will have restrictions on Uk travellers. But if one is logical, people have been buying in Europe before the EU seemingly became one large country!!
So even if a visa is required, as when one travels to the USA and other countries, it is only a little bit more paperwork.
So, for property purchase, the problem has been the Banks lack of mortgage availability for the last few years….this has of course meant people with a non Euro income cannot get a mortgage! This has also affected Banking business and consequently profits. Many of the major lenders have been lobbying the Gov ernment to ease up on these restrictions…so watch this space.?
The buy to let market in Austria now seems to be catching up with other forms of investment in Austria.
With the advent of new regulations on Holiday apartment letting, many clients are turning to the long term rental market.
This of course is good as a pure investment, as it should generate a 6% return. Still better tan depositing money in the bank and you also have the Capital gain on value. …but if you wish to have a holiday home for own use and a rental income, this is not suitable.
Many families and friends are pooling their resources to buy a property, so they do not need to holiday rent. This can have great advantages, if say two or more people buy, and share the running costs and the use.
The Austrian authorities have moved the goalposts once again! The latest regulations for holiday renting are coming into force on 1st January 2018.
These stipulate that second home apartments can not be commercially holiday rented…ie: using websites such as Bookings com etc, to sell rentals . Unless of course the owner gets permission of all the other owners in a building. As this is very unlikely to happen, it means that if you own a holiday apartment with secondary residence status, you can only use as a second home for yourself, family and friends. You can also rent long term and have a tenant but you cannot commercially holiday rent, the apartment, for short periods.
This of course is going to have quite a knock on effect to the property market.
It will mean of course that the value of many properties will drop, because of the restriction. Part of the benefit was to holiday rent to get a return on your investment, and of course this in itself would have added a premium to the property value.
We will be updating as we get more information.
A new house in Austria (123m2) now costs on average €359,000. Prices for new-build properties have increased the most over the past six years in Styria (where the average cost is now €301,000), Burgenland (€260,000) and in Lower Austria (€338.000).
New homes are most expensive in the capital Vienna, where a 123m2 apartment or house costs around €471,000 – an increase of 22 percent since 2010.
The value of older properties has also risen on average by around 35 percent. “Anyone who purchased property in 2010 can be very happy from today’s point of view,” according to Christian Nowak, Managing Director of ImmobilienScout24 in Austria.
Bargain prices for older properties can be found in Burgenland, Carinthia and Styria – with average prices for a house between €230,000 and €290,000. In Vorarlberg and Salzburg you can expect to pay double or triple that, with average prices between €515,000 and €560,000. The most expensive older properties are in Vienna (where a house or apartment with 169 m2 will set you back around €710,000) and in Tyrol (where average prices are €640,000).
New-build apartments now cost on average €351,000 euros for 80 m2.
Monthly rental costs have also risen in the past six years. For a used apartment you can now expect to pay on average €9,80 per square metre (not including operating costs) – an increase of 11 percent since 2010.
Rental prices for new properties have risen steeply, by 21 percent, with average costs now €11,50 per square metre. In Vienna council-owned properties, where rents tend to be cheaper and only rise according to inflation, are in high demand. Wiener Wohnen says it currently has 13,100 people on its waiting list, who have registered their interest in renting a council flat.
The fact that property prices are increasing should be cause for alarm, says Georg Spiegelfeld, president of the Austrian brokerage network Immobilienring IR. “There are not enough properties available and this problem will increase. Around 300,000 people are expected to move to Vienna over the next few years… and the city has not prepared for this.”
He said that the only answer is to “build, build, build and redesign”.
We get asked this question so many times, and particularly with Brexit looming. Am I allowed to buy in Austria and would the goverment take my property?? One could ask the same questions about Cornwall, with the changing rules.
Well, people were buying in Austria before the UK joined the common market, and will no doubt still be buying when we are not in the EU.
Yes, you are allowed to buy in Austria, just as a Non European can buy if they conform to the rules. This is the part that has changed. There are new rules and regulations for buying and financing property, and this applies to all EU citizens and not just the British!
We realise it can be confusing as people hear different stories from friends or read different information on the internet.
We do not have enough space here to cover all in detail, but to try guide and clarify; Austria has separate criteria for different regions, villages and areas, plus differing property designations!
You can generally buy a house or apartment in all regions of Austria to live in as your main residence. The Austrian tax office are very happy with this, because as a main resident all your worldwide income would be taxable in Austria.
So, the parts that are difficult are the secondary residences and holiday useage.
Secondary residence, is the permission to have a second home for your own and family use. It does not imply permission to rent it out for holidays to all and sundry. Many buyers have been caught out with this. We get phone calls and emails saying they have bought a holiday apartment and are not allowed to rent it!
Can we help? Sorry, we cannot, it is too late. It is down to the management company and all the other owners. They would need to get more than 50% of other owners agreeing to their commercially letting for holidays.
Certain areas are designated as holiday use, but this does not mean that every apartment building is a holiday use! So, there are 2 things to check here. Does the area and the building allow holiday renting use?
It is always best to take legal advice or get your consultant to check all these things for you.
Are Austrian mortgages becoming extinct?? Well, one would think so, with all the new banking regulations. The Basel 111 agreements have a lot to answer for. But also as of April this year, the new regulations got tougher.
These demand that for a mortgage, the income to support the mortgage originates in Austria. Therefore the government can ensure they get their tax wack on the income….great for deterring money laundering, and for locals who have their income in Austria, but what about the UK property investor, or in fact any EU investor?
So, your Income is in the UK? Besides getting a job in Austria…the only real options at the moment are a commercial mortgage(more expensive) or to release funds in your UK property. This can be quite sensible as many UK institutions are offering low mortgage rates. The commercial mortgage route, means you need to set up an EU company from which mortgage payments would be made.
We have found, that over the past year, Clients are now considering buying businesses that already have an existing income! This can satisfy the lending bank. The other thing, is that Banks in Austria still remain automous for their decision making on lending. Unlike the UK where the mortgage market is controlled by half a dozen large institutions.
This could certainly affect the value of property in the alpine resorts. In a new study researchers found that Switzerland has nearly 40 fewer snow days a season than it did in the 1970s, even in high altitude resorts. Austrian resorts mirror this change.
The situation could have a serious impact on ski tourism in the Alps, with the higher resorts which typically offer Spring breaks also affected. This would have an effect on property prices, either dragging them lower or remaining static.
Austrian experts echo the Swiss findings, with the Central Institute for Meteorology and Geodynamics (ZAMG) confirming that a higher average temperature rise has been recorded in the Austrian Alps compared to other regions around the world, and that this means that “in principle we can expect a shorter duration of snow cover in the Alps”.
Perhaps the answer for property investors is to look to the lakeside resorts that get high tourism figures in summer and Christmas markets in winter months?
Source: The local:
Photo: St. Anton ski resort. Photo: 24seven/Wikimedia
Over the years we have had many requests from our clients about property on the Adriatic coast. Being only 2.5 hours drive from Austria to Croatia, many Austrians use this area for main holidays and weekend breaks…perhaps a little similar to Londoners visiting Devon!
Well, we have listened and working together with our Adriatic colleagues, we are pleased to announce the launch of our new property investment pages for the Adriatic coast.
Is it safe to invest there? Yes.. the legal system is similar to Austria, where all properties are registered……there are of course older properties with ownership problems..mainly because families never registered a property correctly, but this is why you pay a lawyer!
Over the coming weeks we will be adding many property choices ranging from small farmhouse to luxury villas driectly on the coast. So, please make it a habit to visit us regularly. Adriatic pages.
Property and land for sale in Austria. Check all our property and land for sale in Austria pages. There are properties for holiday use or investment in most sort after areas of Austria.
Open a currency account to purchase property in Austria.