Webinar: Buying Real Estate in Austria
In a series of webinars, we provide advice and tips on the topic of "Real Estate in Austria" - especially from the perspective of a potential international buyer from abroad.
What are the advantages of buying real estate in Austria? Advantages, but also risks and disadvantages?
What is important when buying real estate in Austria?
Legal, tax and economic aspects
Costs & procedure of a real estate deal
Our recommendations for action
Our articles and webinars for international real estate buyers
Webinar: Top Real Estate Locations in Austria
In a series of webinars, we provide advice and tips on the topic of "Real Estate in Austria" - especially from the perspective of a potential international buyer from abroad.
In this webinar, we cover the most important real estate locations in Austria in an overview:
Vienna
Salzburg
Kitzbühel
Alpine Regions
Austrian Lakes
Southern Styria
Our articles and webinars for international real estate buyers
Webinar: Top Real Estate Locations in Austria
In a series of webinars, we provide advice and tips on the topic of "Real Estate in Austria" - especially from the perspective of a potential buyer from abroad.
In this webinar we cover an overview of the most important real estate locations in Austria:
Vienna
Salzburg
Kitzbühel
Alpine regions
Lakes in Austria
Southern Styria
Webinar: Buying Real Estate in Austria
In a series of webinars, we provide advice and tips on the topic of "Real Estate in Austria" - especially from the perspective of a potential buyer from abroad.
In this webinar, we'll cover the following topics in an overview:
What are the advantages of buying real estate in Austria? Advantages, but also risks and disadvantages?
What is important when buying real estate in Austria?
Legal, tax and economic aspects
Costs & process of a real estate deal
Our recommendations for action
Real Estate South Styria
Southern Styria has the nickname "southern Styrian Tuscany" and inspires more and more real estate buyers with its landscape, culinary delights and climate. See the visual impressions in this video:
Among the most popular places are:
Gamlitz
Ehrenhausen
Großklein
Leutschach
Kitzeck
Particularly desirable in this region are the properties, where you can enjoy the distant view, for example, from a country house on one of the hills. From time to time, a plot of land, a vineyard or a winery comes on the market. However, because there has been a strong buying boom in recent years, the supply of real estate is now not huge. So it's a case of constantly staying tuned and searching until something interesting comes in at some point.
If you want us to keep you informed, you can register with us as a SUNSET Member ' with your search criteria and be placed on our member distribution list.
In a series of articles we give advice and tips on the subject of "Real Estate in Austria" - especially from the perspective of a potential buyer from abroad. You can find more articles here '
The single-family interest house as a new trend?
Single-family homes represent the world's largest asset class and, among real estate, are also the most widely used form in Austria and Germany.
To date, investing in and renting out single-family homes - hence the term "interest single-family home" - has not been big business.
However, that could now change, for the following reasons:
Rising demand: Even many high-income earners can hardly afford property at the current price level. The tightening of financing guidelines (see, for example, Prof. Dr. Gramann's article here ' ) also contributes to this problem. I do not see a rise in prices in the coming months, as a good part of the real estate industry would like to see (see article "Immotrends 2023"). But I also do not expect prices for real estate including EFH to plummet dramatically. Thus, numerous previous potential EFH buyers will now (inevitably) become EFH renters. To live in an EFH, especially with a garden, in the green outside the city center, with enough space for family and front door, will remain the desire of many people. And will not simply be replaced by a city apartment.
Good returns: Unlike non-profit housing or apartments in multi-party houses, rental single-family homes ("EFH") are subject to virtually no restrictions under rent law. Up to now, there has been supply in this segment mainly in the luxury and high-end segment, which meets with solvent tenants such as diplomats, top managers, and the like. And provide nice returns for landlords. Good returns are also achievable in the segments below, especially since demand will increase as mentioned above. In the USA, "EFH" are considered by far the highest-yielding asset class, with returns of up to 20%.
Investors are already jumping on board: Until now, EFH was considered high-yielding, but too small-scale and therefore virtually uninvestable for larger and institutional investors. This has changed, starting in the USA: Starting with Blackstone, the world's largest asset manager, other major Wall Street investors such as Goldman Sachs and KKR are now investing in the "single-family homes" asset class. While the investment was still at USD 3 billion in 2020, it already rose to USD 45 billion in 2021. The thousands of homes held by these are being refurbished with new flooring and plumbing and also modernized, for example with smarthome technology. These amenities are also attracting better-off tenants. This trend is also spreading in other countries such as the UK, Germany, Ireland, the Netherlands and Scandinavia (see also article in ECONOMIST ' ).
Considerations and challenges for investors
Limits to growth: Despite rising rents in this segment as well, this trend will not continue in the long term, but will level off. On the other hand, thanks to inflation-linked and longer rents, residential rents are robust and fluctuate less in economic cycles than "property" or "office" rents.
Cost uncertainty: rising interest rates, inflation and an uncertain economic outlook mean that the cost of construction, renovation and maintenance is rising.
Opportunities: Rising interest rates mean investors also need to monitor alternatives such as bonds, which may offer more return with less risk and expense.
In summary
Despite these challenges, I think the "interest single-family home" is a highly interesting asset class for investors - even institutional ones.
Would you like advice on this topic? Or are you looking for a professional partner to help you put together an EFH portfolio? Then contact me '
Dr. Andreas Bonschak
Mallorca Special: From vacation to residence
Read how, thanks to Covid and modern technology, some vacation homes have now become a second home or even "main residence" for many. The example of Mallorca, where I was able to interview some part-time or full-time residents and real estate agents during a trip.
In this article, I share some impressions of how, thanks to Covid and modern technology, some vacation homes have now become a second home or even "main residence" for many. The example of Mallorca, where I was able to interview some part-time or full-time residents and brokers on a trip.
In the past, the division was still simple: Those who could afford it had, in addition to their main residence in or near the big city, a weekend domicile in the countryside and some the vacation home in the sunny coastal regions of Spain, Portugal, Italy or Greece. In recent decades, the USA, South Africa and Dubai have also been added as destinations.
Just recently, the development of vacation ownership has taken a decisive turn: Increasing digitalization, modern telecommunications including the Internet, and flexible travel options have created a new layer of buyers interested in longer stays and amenities designed for longer-term living:
So fully equipped apartments and villas with modern home and telecom technology, open indoor and outdoor spaces and enough storage space for year-round comfort.
The Covid pandemic now accelerated the use of digital remote communications and the acceptance of teleworking and working in one's own home office. As some interviewees have confirmed to me, new opportunities are opening up for many self-employed and business people to now use a suitably developed and equipped vacation home as a fully-fledged "home" and "office". My clientele includes a number of entrepreneurs who, thanks to a good Internet connection and the same or similar time zone, conduct their business from Mallorca, South Africa or Madeira. And enjoy the sun, garden and sea view the rest of the time.
What the most sophisticated clientele has been practicing for quite some time, this second headquarters is a top-down trend that will become prevalent for more wealthy segments.
Required for these "second prime homes" are ...
modern, fully equipped real estate with ...
more spaces, green areas and work areas
with fluid concepts of home and vacation home, where families increasingly divide their time between two or more locations.
A trend that has come to stay.
What do you think?
If a second residence or second domicile is of interest to you, we will be happy to support you from Austria, as a search broker who will locate specific properties for you on site according to your criteria.
Otherwise, thank you for your comments and feedbacks and see you next time!
Dr. iur. Andreas Bonschak, LL.M.
licensed real estate trustee (broker)
Managing Director SUNSET IMMOBILIEN
How you can optimally sell an apartment house
Tip: How to optimally sell an apartment house
In a series of articles, we provide tips and considerations for those who want to or need to sell their apartment house or rental house, i.e. a multi-family house, or are basically considering such a thing. Even though we are real estate trustees in Austria, our tips apply generally in German-speaking countries for anyone selling an apartment building.
It should also be noted that we also offer a free initial consultation on the topics presented.
Introduction
The sale of an apartment house does not happen very often for most owners. This makes it all the more advisable to have an expert at your side. We support our clients with our detailed knowledge, network and profound market expertise. And last but not least, with our passion for real estate and apartment buildings in particular.
The possibilities at a glance
What is the best way to sell an apartment building? There are four possibilities, sorted in order of professionalism, starting with the "do-it-yourself" method and ending with the most professional method with the best chance of achieving the highest price:
Sell yourself, so nowadays mostly online
a discreet sale through a broker
via auction and
a bidding process
1. sell yourself
Doing it online has some disadvantages and risks: First, you will receive countless inquiries from brokers and questionable prospective buyers with unclear creditworthiness. Second, interest and rental houses that are put online are considered "second choice" properties that could not be sold "offmarket" before and had to be put online now.
Either way, you have the effort with the preparation of documents such as Expose, photos, then the appointments, the numerous visits. In addition, you have to think about the purchase contract, the liability and warranty for defects, the land register registration, the real estate taxation, i.e. many legal or technical aspects where lawyer, tax advisor, notary or construction technician belong coordinated.
2. discreet sale via real estate agent
With the discreet sale of your apartment house via a real estate agent, a broker takes this effort off your hands and handles it for you professionally and quickly. You then only decide to whom and at what price you want to sell your apartment house. And you don't have to worry about anything during or after the sale. By the way, this is the classic, most common method of sale. Our team also offers this service and is supported by lawyers, tax advisors, notaries and building technicians and you get a professional service from one source.
3rd auction
At an auction, potential buyers gather who have been comprehensively informed about the apartment house or several apartment houses beforehand. With the auction and the award to the highest bidder, the sale is completed. This type of sale is used from time to time, especially when prestigious or even a package of apartment buildings are put up for sale in a way that attracts public attention and without time pressure.
4. bidding process
The bidding process has become increasingly popular in recent years - at least among sellers. This works in such a way that the interested parties submit their sealed purchase offer at a fixed deadline and address. When the deadline expires, the offers are opened there and the top-ranked interested parties can then improve their offer again (once or several times). Such a bidding process is often used for apartment buildings in sought-after top locations or if the house belongs to several parties who attach importance to a transparent sale.
Tip
Those are basically the four ways you can sell your interest or rental home. Selling on your own involves a lot of effort and some pitfalls that you have to take into account. We can advise and actively support you on all sales methods, i.e. from finding a buyer, marketing, purchase contract, signing to handing over the keys.
Would you like to receive free, non-binding advice on your apartment building?
Then simply contact us.
What good is an estate agent these days?
What a real estate agent should be good for in today's time
"Brokers are often not worth their money."
That's what a lot of people think who have had bad experiences with brokers. Which unfortunately often happens.
For what brokers?
(Only) A well-trained broker has a specialized knowledge that helps his clients and protects them from disadvantages and risks and has the following advantages:
1. sales result & price
A good broker knows the market, knows how to value a property, and takes into account its specifics. And he knows many preregistered customers who can be addressed even before an online ad is placed. And in price negotiations, private sellers often give away a lot of potential.
2. marketing
In addition, one should not underestimate the visual preparation: According to one study, properties advertised with video and 3D tours generate about a third more inquiries and about a 10% higher sales price.
3. effort
Private sellers usually can't match the service quality of a good realtor, if only because of the lack of experience and equipment. You are responsible for everything yourself - photos, video, documents, exposé, placement and advertising, coordinating inquiries, conducting viewings, negotiating the price, and much more - all these things are very time-consuming and often underestimated.
4. risk
Errors in the sale, defects in the property or non-compliance with legal regulations can lead to high financial disadvantages. And as a seller, you are generally liable for material defects and defects of title.
5. safety
A broker creates security with his advice and is also obliged to take out liability insurance.
Our tip
While in the case of smaller properties such as apartments and plots of land, a sale by the owner without a broker is still justifiable under certain circumstances, we always recommend the use of a professional broker for larger properties such as single-family and multi-family houses, apartment buildings and luxury properties. This is in any case advisable from the point of view of security, effort and price maximization.
You would like to get free and non-binding advice on your real estate?
Then simply contact us.
How to invest in real estate?
Better to invest directly in apartments, houses or better in real estate funds or trusts? What are the advantages or disadvantages of these investments? What are REITs'?
See video and guest post by GELDBLICK.