Resicom – Holiday Investment – 04-21 – LB

Austria – The affordable ski option

With the ski season upon us, Austria is a natural choice to begin considering. An affordable option with dual season appeal, the Alpine areas are perfect for a variety of outdoor holidays. Some areas are even somewhat busier during summer due to the appeal of hiking and biking in the mountains. This means that the void periods often associated with ski properties cease to be an issue for investors, making Austria an enticing option.

Largely left out from the booming prices of French and Swiss resorts, property has remained stable and affordable in Austria. Ski chalets can be bought for almost half the price of their Swiss equivalents due to the high restrictions and demand in the latter area. EU citizens are permitted to buy and reside wherever they please, although there are some restrictions on holiday homes.

A further appeal is the relatively simple buying process in Austria, with a notary acting on behalf of both the vendor and buyer and overseeing the deed of sale for both parties. In ters of buying costs, around 6 to 7 per cent must be budgeted for purchase costs which include stamp duty, land registry and notary fees. Mortgages are typically around 60 per cent LTV with interest at approximately 3 per cent. Should you choose to rent out your new build, savings of 20 per cent in VAT can be had.

However, it is important to note that although foreign buyers are fairly unrestricted, there are certain rental obligations for properties purchased. Whilst clearly not a problem for profit driven investors, buyers may be asked to make their home available to rent or even contribute towards tourist focused developments which will specify a number of week’s usage.

In terms of desirable areas, Bad Gastein is growing in popularity amongst British investors. A mere seventy minute drive from Salzberg, it has a wide range of appeals including unique and elegant architecture, good restaurant and wellness facilities and thermal springs. Apartments are the main property of choice, and they range in type from new build to converted historical buildings. A studio apartment will set back investors around £85,000 whilst a two bedroom apartment could cost up to £153,000.

Gerlosplatte has been recommended as a location for affordable ski property. 75 minutes from Innsbruck, the resort is situated just eight minutes away from the riverside town of Gerlos. New build 4 bedroom chalets sell for a mere £425,000, making the area affordable and accessible.

More widely known is the Salzburgerland resort, just 90 minutes from Salzburg. Family friendly and full of new developments, the area boasts studios in hotels for a mere £78,000 and high end apartments for prices which exceed £500,000. A new build two bedroom apartment will set investors back approximately £230,000.

With affordable prices and year round usability, Austria remains a sensible choice for ski property investors.

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