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Why Should I Invest in Austrian Ski Property?

kristall-spaces-austrian-property-zell-am-see-1024x677Investment in Austrian ski property has never been such a great deal. With a strong winter and summer tourism industry, rental yields are high and reliable, and ski property averages a 4% per annum capital growth.

In addition to the annual 1% VAT rebate, recent changes in Austria’s coalition government, especially the appointment of Hans Jörg Schelling as finance minister, look set to favour property investment with tax breaks and other incentives.

Austrian banks have shown considerable interest in foreign investment in property over the past year, and now they’re regularly offering finance of up to 55% for such investments. Their position has been strengthened by last month’s cut in interest rates by the European Central Bank, along with an energetic stimulus programme.

Are there any disadvantages?

One law does appear to go against the trend and discourage investment in buy-to-let holiday apartments. This is a recent court ruling which specifies that an apartment can only be let as a holiday home if all other residents in the building give written agreement. If even one objects, you may not be able to let.

This law hasn’t been properly tested, but it does make random investment in holiday apartments risky. On the other hand, the risk doesn’t apply to purpose-built buy-to-let ski apartments, since all units in the building will be specifically sold with the purpose of holiday rental. The answer is simply to make sure you’re investing in the right kind of property.

Suppose I can’t afford an apartment? Are there other options?

If you can’t raise the full cost of an apartment on your own, you might want to consider joining a property investment crowdfunding scheme such as the one offered by Kristall Spaces. Crowdfunding platforms are becoming popular across the buy-to-let property market, allowing individuals with modest sums to invest in a share of a property, receiving regular dividends from the income.

This model is being applied to ski property in Austrian resorts, too. Even a small participation in a ski property project in a resort like Sölden or Saalbach is likely to yield a good income, and may offer a way to have enough within a few years to buy a property outright.

As with all investments, it’s important to ensure you choose the right scheme. If you invest your money wisely, though, this offers one more route to benefit from the growing market of Austrian ski property.