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Austrian Ski Property Investment

Purchasing ski property in Austria is becoming more than just a luxury lifestyle choice reserved for the world’s wealthy. This informative ski property investment guide will hopefully give you the knowledge required to take the next step forward. The property market in Austria has been rising steadily for the last decade with an average of 4% growth per annum and buying property here is fast becoming the intelligent investor’s business decision.

Austrian ski resorts never cease to improve. Ski operators have invested 7 billion euros since 2000 into the infrastructure of it’s ski industry, maintaining the countries competitive edge and playing a role in its ever-climbing property values. Austria is becoming increasingly sought-after as a key destination in the Alps, for its dual seasonality and great capital appreciation prospects.

Investors can save up to 20% VAT on tax-back deals and with demand for buy to let holiday homes exceeding supply,  Austrian ski resorts are the perfect example of a property investment that offers solid returns due to their desirability and the fabulous infrastructure already set up to manage them.

Did you know? The Telegraph has listed Zell am See, Austria the 9th best place in the world to invest, surpassing Dubai, Manhattan and Marbella. 

The basics

The benefits of property investment are two-fold. You acquire a capital asset, which generally appreciates, providing a profit when you come to sell. You also benefit from the annual rental income it produces. The key is to find a property where values have increased consistently over the last few years and where there is a strong level of demand for holiday rentals. This key is Austria.

Capital Returns

Over the past decade capital returns have steadily risen by approx. 4% per annum. This is because there is no over-building in these ski regions and planning permissions are lengthy and difficult to obtain. Demand outweighs supply, and that is what drives the prices up.

Rental Returns

Investors are increasingly looking at rental returns, in addition to the long-term capital appreciation that an Austrian ski property can deliver. Austria is particularly appealing because of its lower costs and starting prices than other Alpine destinations like France and thus enjoys boosted rental yields. Austria has the highest gross rental returns at an average of 4% – 6%. Compared to gross yields in France and Switzerland of 2.5% – 4% and with Austrian property prices being up to 50% lower than its neighbours, it is clear why investors are taking Austria seriously.

Even returns from prime central London property are less competitive, at 2.8%.

Austrian Property Market

Within Austria, property values can vary significantly between resorts due to varying supply and market conditions. Nonetheless, Austrian resorts are seen as more affordable than Swiss resorts which are the most expensive and difficult to buy in the Alps (In Switzerland foreign buyers are heavily restricted on residential property purchases with just 1,500 permits issued a year)

The dual-seasonality of Austria is another excellent pull for investors as unlike other holiday investment properties, the Austrian Alps has two rental high-seasons in one year. In the winter your investment generates income from skiers and holidaymakers enjoying Christmas and New Year in the mountains, and in the summertime your investment is a desirable holiday location for hikers and cyclists. In fact many Austrian Alpine regions get more tourists in the summertime than winter.

Because nearly all holiday homes in Austria have an obligation to be rented, there are already excellent fully managed rental infrastructures in place which can handle everything for you; the marketing, bookings, accounts, arrivals/departures, cleaning, rubbish removal and snow clearance. Your chalet or apartment can also be fully furnished for you so that it is immediately ready for rental guests, everything is taken care of – you receive a return on your investment which is better than banks can offer and you can enjoy your new holiday home in fabulous locations completely hassle free.

Tax Incentives

Austria offers tax incentives to investors that rent their new-build property and will refund the VAT element of your purchase price giving a discount of up to 20% on the gross price. When you are not using your property a professional tour operator will rent it to generate an attractive income.

Ski Property Specialists

Alpine Marketing are completely independent sales agents working with all the top developers in the Austrian Alps. As we do not develop any property ourselves we can offer unbiased, independent advice. We also do not charge a buyer’s fee which most local agents charge saving you another 3%.

Our portfolio

We have an exciting portfolio of ski property for sale to suit your requirements – We are completely independent sales agents working with all the top developers in the Austrian Alps. As we do not develop property ourselves we offer independent advice.

Guaranteed Income – If you are looking for a ski chalet or apartment with investment in mind and the security of a guaranteed income, we have handpicked some great investment properties for you. Rates are usually guaranteed for a three-year period on a rolling contract which is index-inked offering you piece of mind especially when combined with a fixed-rate mortgage.

Fully Managed – Many of our properties offer a fully managed rental service where the developer teams-up with a large tour operator. The tour operator will efficiently handle all your rentals when you are not using your property and then pay you a quarterly or monthly income. As an owner you simply book your forthcoming winter and summer dates in advance and the tour operator will do the rest. Many fully managed chalets and apartments for sale also offer extensive additional facilities including restaurants, spas and swimming pools.

Flexible Rental – If you want to maximise the personal use of your property and are looking for complete flexibility, then a property with a flexible rental option is perfect. In this way you can either rent your property through a local tour operator, or rent privately. If you chose a tour operator, they will advertise your property, manage your online bookings, meet and greet your guests, and deal with the laundering and cleaning of your property when your guests have departed. If you chose to rent privately, you can make your own web site to advertise your property, or advertise on a holiday rental portal, of you can rent privately to friends and family. Either way, we can recommend companies who will arrange all these services for you.

Second Home – If you prefer not to rent your property, we are able to offer a small selection of properties that have a rare “second home” permission, which means you have no obligation to rent.

NEED A LITTLE SKI PROPERTY ADVICE?

Call our Austrian property specialists on: +44 (0)20 7935 5132 – five minutes on the phone can save a lot of time on wasted research! Alternatively, feel free to email us at enquiries@alpinemarketing.com



Disclaimer: Whilst we make every attempt to ensure the accuracy and reliability of the information we provide, we are not tax advisors or lawyers. We are reliant upon information provided by third parties and therefore, the company, its employees and agents will not be responsible for any loss however arising, from the use of, or reliance upon this information. Legal advice or tax advice must be received by a professional Lawyer or tax advisor and we are happy to put you in touch with companies if you would like further information. These particulars and the company website do not form part of any offer or contract and must not be relied upon as statements or representations of fact. Registered Office: Bentinck House, 12 Bulstrode Street, London W1U 2JF, Registered in England. No. 06423236.