The Hills are Alive – with Austrian Property Investment
Landlocked Austria rarely features on a property investor’s portfolio even though the country is Europe’s second most popular destination for skiing. One of the reasons for Austria’s low profile for property investment are the restrictions it places on the ownership of holiday homes, which in some regions has, up until now, been prohibitive. However, the recent relaxation on restrictions for EU nationals, the stunning countryside and the increase in low-cost flights means that Austria now has plenty to offer the investor.
Some regions have long been popular with the Germans and Swiss, particularly the Tyrol, just over the border from Bavaria. For the British, however, Austria was previously little more than the location of the cult film ‘The Sound of Music’. But the introduction of frequent low-cost flights from the UK to Innsbruck, Salzburg and Vienna has sparked British interest, which is now fuelled by the discovery that Austrian ski resort property costs considerably less than similar property in France or Switzerland.
Resort properties cost around €2,000 to €3,000 per square metre – you would expect to pay at least €4,000 in the French Alps. The recent lack of interest in Austria means property prices have escaped the huge hikes seen in other countries, although there have been steady annual rises. According to the Salzburg Economics Chamber, property in resorts rose by 4.5% to 5% during 2008 and prices are forecast to go up by 3% in 2009. These slow but steady increases make for good returns on a medium to long-term investment. In any case, investors in Austria need to look at a minimum of ten years ownership – capital gains tax on the sale of a second home is a huge 34% unless the property has been held for at least ten years when it becomes exempt from the tax.
Austria offers plenty to choose from when searching for an investment. While Salzburg and the Tyrol are always popular, the state of Styria in the south-east tempts the skier with 865km of slopes and Carinthia in the south has around 20 excellent ski resorts. Outside the snow season, Austria’s mountains become outdoor playgrounds and are popular with hikers and walkers, meaning there is year-round rental potential for buy-to-let investments. Bear in mind that Austrian property regulations mean that all second homes must be available for let during part of the year – usually between 130 and 150 days a year depending on the region where the property is located.
“The letting requirements on second homes and high capital gains tax mean that Austria should only be considered for a minimum 10-year investment,” advises James Gonzalez, Market Analyst at Obelisk Investment Property. “However, its excellent ski resorts mean that buy-to-let potential is high and the consistent annual price rises make Austria certainly one to consider in a long-term portfolio.”
For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).
Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge at http://www.absoluteguideseries.com/
Email: info@obeliskinternational.com or visit our website: http://www.obeliskinvestmentproperty.com/
For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com
Some regions have long been popular with the Germans and Swiss, particularly the Tyrol, just over the border from Bavaria. For the British, however, Austria was previously little more than the location of the cult film ‘The Sound of Music’. But the introduction of frequent low-cost flights from the UK to Innsbruck, Salzburg and Vienna has sparked British interest, which is now fuelled by the discovery that Austrian ski resort property costs considerably less than similar property in France or Switzerland.
Resort properties cost around €2,000 to €3,000 per square metre – you would expect to pay at least €4,000 in the French Alps. The recent lack of interest in Austria means property prices have escaped the huge hikes seen in other countries, although there have been steady annual rises. According to the Salzburg Economics Chamber, property in resorts rose by 4.5% to 5% during 2008 and prices are forecast to go up by 3% in 2009. These slow but steady increases make for good returns on a medium to long-term investment. In any case, investors in Austria need to look at a minimum of ten years ownership – capital gains tax on the sale of a second home is a huge 34% unless the property has been held for at least ten years when it becomes exempt from the tax.
Austria offers plenty to choose from when searching for an investment. While Salzburg and the Tyrol are always popular, the state of Styria in the south-east tempts the skier with 865km of slopes and Carinthia in the south has around 20 excellent ski resorts. Outside the snow season, Austria’s mountains become outdoor playgrounds and are popular with hikers and walkers, meaning there is year-round rental potential for buy-to-let investments. Bear in mind that Austrian property regulations mean that all second homes must be available for let during part of the year – usually between 130 and 150 days a year depending on the region where the property is located.
“The letting requirements on second homes and high capital gains tax mean that Austria should only be considered for a minimum 10-year investment,” advises James Gonzalez, Market Analyst at Obelisk Investment Property. “However, its excellent ski resorts mean that buy-to-let potential is high and the consistent annual price rises make Austria certainly one to consider in a long-term portfolio.”
For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).
Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge at http://www.absoluteguideseries.com/
Email: info@obeliskinternational.com or visit our website: http://www.obeliskinvestmentproperty.com/
For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com
Labels: Austria, investment, property, real estate
posted by Alison Kane at 4:47 pm
0 Comments:
Post a Comment
<< Home