A Guide to Investment Property in Austria
As the birthplace of the likes of Strauss, Mozart and Schubert, Austria has long appealed to holidaymakers, culture seekers, expats and investors. This country of beautiful alpine landscapes and picturesque cities is now capturing much attention with foreign property investors.
Austria’s stable government, growing economy and booming tourism industry all combine to make investment in Austrian property quite attractive. We at Nubricks.com would cite these 10 reasons as those that are helping boost confidence in investment property in Austria: -
1) Austria’s Stable Government Lends itself Greatly to Inspiring Property Investor Confidence
Whilst it is true Austria has a colourful political past having found itself at the heart of both world wars, the country’s political atmosphere has changed greatly. Austria is now a parliamentary democracy that has enjoyed neutral status since the 1950s. The country’s stability has helped it create a very favourable reputation with the West. This strength of the Austrian government and the neutral status both lend themselves greatly to inspiring investor confidence in property investment within Austria’s borders
2) Austria’s European Union Status and Role on the International Scene Inspire Confidence
Austria has been a member of the EU since 1995. Whilst it still holds a neutral stand as a pillar of its identity, the country has lent its support to some NATO- and EU-led missions. In addition to its EU membership, which shows the strength of its ties to Europe, the country is also a member of the United Nations, the Council of Europe and other international organisations. Its desire to take part in the international community and its EU support makes investment here attractive.
3) Austria’s Use of the Euro Eases Buying and Inspires Property Investors
The adoption of the euro by Austria has helped make investment here simpler for many European citizens. Since many investors do not need to concern themselves with exchange rates, the process of buying has been streamlined by the effort. Whilst Brits will have to exchange currency, many others do not. Add to this the fact that the euro-based economy inspires confidence in stability and the appeal for real estate buyers becomes evident.
4) Austria’s Economic Stability Attracts Property Investors Looking for Security
Austria’s economy is quite strong and very stable. The country enjoyed a GDP of EUR 256.4 billion in 2006 and economically Austria is growing at a rate of about 3.3%. Austria’s inflation rate is one of the lowest, falling in at 1.7%. The strength of the Austrian economy is largely due to its food, tourism, engineering and manufacturing industries. The growth and stability of this particular market very much inspires investor confidence in Austria property purchases over the long term.
5) Austria’s Property Market Appeals Due to Year-Round Rental Potential
With its year-round appeal and world-renowned resort areas, Austria’s property market is a very popular investment. Whilst the prices here tend to be high in relation to other EU countries, the strong and growing tourism demands and the potential for returns through buy-to-let and resale strategies make this country inspire confidence. Buyers can expect quite high prices in Vienna, but other areas provide a larger pricing gap. A one-bedroom flat in Salzburg, for example, can still be had in the EUR 50,000 range.
6) Austria’s Geography and Climate Appeal to Holidaymakers, Expats, Retirees on a Year-Round Basis, Inspiring Long-term Commitment and Confidence
Whilst some countries with a seasonal climate tend to lose tourism popularity in the colder months, this is not the case with Austria. Thanks to its incredible Alpine ski resorts and its strong cultural draws, it is a destination no matter the season. The geography of Austria appeals not only because of its beautiful mountain ranges, but also its lovely rolling hills and picturesque plains. Austria’s geography and climate deliver holidaymakers year-round and they also appeal to expats and retirees. This, of course, inspires investor confidence as the popularity of this country is showing no signs of slowing down.
7) The Booming Tourism Industry makes Austria Very Attractive for Buy-to-Let Property Investors
Austria’s star on the international travel and tourism scene shines quite brightly. With nearly 1 million Brits alone travelling to this country each year, the demand is very strong. Indeed, this little landlocked country boasts a 1.2% share of the world’s travel demand, according to the World Travel & Tourism Council. Austria’s tourism industry is expected to generate more than EUR 61.6 billion in 2007 and demand here is anticipated to continue to grow by a rate of 2.4% per annum through to 2017. This is very good news for investors who seek buy-to-let and hold-for-eventual resale strategies. The taxing structure here does not lend itself well to buy-to-flip prospects, however.
8) The Cultural Draws Appeal to Holidaymakers, Expats and Retirees and Generate Property Investor Interest
As the birthplace of some of the world’s most noted composers, artists, architects, dancers and more, Austria appeals to cultural travellers in a very big way. The country’s main cities are cultural hotbeds that draw in holidaymakers, expats and retirees. Students, too, flock to Austria to take in its sites, study and glean inspiration. From its stately palaces to the music of Mozart, Austria and ‘artistic excellence’ are synonymous. This appeals greatly to investors seeking markets that have historically strong tourism demand and demand that is not likely to dissipate.
9) Ease of Access to Austria helps it Appeal on Many Levels for Property Investors
Austria is readily accessible to EU citizens without a visa required. Getting to the country is simplified by low-cost flights and train travel. Roundtrip airfare from London to Vienna costs under USD 350 for example, this is very good news for investors seeking to cater to the holidaymaking market. Since the splendours of Austria are so readily accessible and affordable, demand is not likely to go down.
10) Welcoming People Help Keep Austria in the Spotlight with Investors, Holidaymakers and More
The Austrian people are noted for their welcoming nature toward holidaymakers, expats and retirees. As long as visitors pay the culture and its wonders the proper respect, these people are known for going above and beyond to make visitors feel welcome. Indeed, many expats report feeling quite at home here and give credit to the people themselves. This is very encouraging for investors looking to cater to the holidaymaking market and also those hoping to resell on to expats. If visitors enjoy themselves, they are likely to keep coming back and maybe even to buy a home of their own in Austria providing a rental and an exit strategy.
With its incredible beauty, noted history, cultural attractions and wonderful atmosphere, Austria appeals to investors on many levels. Whilst buying here is not the cheapest prospect by many means, the potential for returns makes it very attractive to investors.
