Can I buy with a mortgage?

Buying Austrian property with a mortgage

If you are interested in purchasing with a mortgage it is possible to borrow up to 50%-60% of the purchase price from an Austrian Bank. Banks will not lend across boarders, so if you want to buy with a mortgage in Austria then you will need to take a loan through an Austrian bank. Variable interest rates are around 2.5%, and it is also possible to take fixed rate mortgages for up to 20 years. We can recommend banks in all of the ski resorts we sell in as we have contacts throughout Austria.

Will they lend to me?
Banks are happy to lend so long as you are buying a property and renting it for touristic use – either flexible rental property, fully managed rental property, or property with a guaranteed rental return. In this case your property would be classified like a ‘small business’ and the income you earn from your rentals may be used to cover the loan.

Tax Advantages
There may be tax advantages to taking a mortgage to buy your ski property. If you rent your property it is possible to offset the interest on your mortgage payments against any profits you may make on your rental income, therefore reducing your tax liability – you can also write off up to 10% of the costs of your furniture as depreciation against your rental income. Additionally, as your rental income will be in euros you do not have any currency exposure if you intend paying your mortgage from rental income.

What are the costs for taking a Mortgage?

Banks will charge a set-up fee and this is usually around 2% of the value of the loan. They will also charge an appraisal fee of 0.5% and you will need to pay the notary a fee of 1.5% of the amount of the mortgage to register the mortgage lender in the land registry.

Other financing Possibilities…
There may be other options available to you to finance buying a ski property in Austria. An alternative option is to borrow against an existing property in your own country of residence and to make a purchase as a cash buyer.

International Transfers and foreign exchange dealings

When you are buying a ski property in Austria and making international money transfers, fluctuating exchange rates can make a huge difference to the final amount you receive in your bank account. 

We work closely with a leading currency exchange expert for all of our clients money transfers, international payments & foreign exchange dealing’s. Our contacts here provide the quickest and easiest way to transfer money internationally and consistently provide bank-beating exchange rates to help both companies and private individuals achieve significant savings. To find out more please contact us.

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