European Central Bank reduces rate of interest making Austrian property investment all the more attractive

In an effort to keep low inflation from derailing the Eurozone’s economy, the European Central Bank has surprised financial markets this September with a cut in interest rates and new stimulus plans.

Speaking at a press conference after the announcement of the rate cut, ECB president Mario Draghi said the Bank expected to see “a prolonged period of low inflation” and reiterated a pledge to keep rates low for the foreseeable future.  After the rate cut was announced, the Euro fell against the Dollar and Sterling making a purchase of property in Europe even more attractive.

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The European Central Bank cut interest rates and announced a program to pump money into the economy and stimulate lending by buying bundles of bank loans.

It may not be a coincidence that we have seen a change in stance in the last 12 months by Austrian banks which have shown a high interest in financing up to 60% of the purchase price of ski property investments by foreign buyers.

If a potential investor is shrewd, they could secure a property now with Kristall Spaces at Spring 2014 prices with only a 1% fully-refundable reservation fee (no buyer’s commission fee) with the first 15% stage payment not due before the spring of 2015.

Furthermore, we have seen an apartment bought for €300k in our recently completed project in Zell am See be remarketed for €350k within 12 months and the buyer only paid 60% of the price before making the decision to sell.

That equates to a €50k uplift on a €180k capital investment in just 12 months.

Please get in contact with us today and find out how you could earn up to 15% IRR on one of our Austrian ski properties.

Five Unmissable Events in Austria This Winter

FIS Ski World Cup Opening

From the 24th to the 26th October, the Rettenbach Glacier above the resort of Sölden hosts the opening event of the FSI Ski World Cup, the Giant Slalom. Featuring the world’s top skiers, including reigning world champion Ted Ligety, the runs will be held in the Rettenbach’s state-of-the-art stadium. In between, there’ll be a full programme of processions, presentations and parties for everyone, both on the glacier and down in Sölden.

FIS Alpine Ski World Cup Opening, 25. - 26.10.2014, RETTENBACH GLACIER.

Top of the Mountain Opening Concert with James Blunt

On Saturday 29th November, the annual Top of the Mountain opening concert welcomes singer-songwriter James Blunt. The free gigs marking the start and finish of the season at Ischgl have traditionally attracted stars such as Elton John, Robbie Williams and Mariah Carey, to be enjoyed by the winter sports enthusiasts who flock to the resort. This year Blunt, who is himself an enthusiastic skier, is including the date in his Moon Landing tour.

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International Hot Air Balloon Week

The “balloon village” of Filzmoos, in the shadow of the mighty mountain Bischofsmütze, is hosting the 36th International BP-Gas Balloon Trophy from the 10th to the 17th January. About forty balloon teams from all over the world will be taking part, flying over the high ranges and picturesque valleys of the district. In addition to the more formal races, the Sunday features a musical display of glowing, colourful balloons, while Wednesday is dedicated to the children.

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Valartis Bank Snow Polo World Cup

The 15th to the 18th January sees snow polo come to Kitzbühel for the 13th Valartis Bank Snow Polo World Cup. A modern variant of polo, this is an exciting, skilful game played across level, compacted snow, and its premier event sees top players and high society gather in the Tyrol in January. Matches are played on the Münichauer Wieser, with the striking Kitzbühler Horn in the background.

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International Hahnenkamm Race

From the 21st to the 25th January, Kitzbühel in Tyrol hosts the Hahnenkamm Race, a series of skiing races held since 1931 and for decades forming part of the World Cup. The event consists of the Super-G, the Slalom, and the Downhill on the Streif, widely considered the most demanding course on the World Cup circuit, including the 80m Mausefalle (mousetrap) jump near the top. The event will feature breathtaking speed and skills from the world’s top skiers.

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Benefits of investing in Kühtai real estate

Located high in the Tyrol, Kühtai boasts an elevation of 2,020 metres, making it a prime destination for winter and extreme sports of all varieties.

The population of this small Tirolean village is only a few dozen residents during the off-season, however, during the holiday period, its numbers swell exponentially as those in the know seek the best early and late season skiing.

Investing in Kühtai

A common concern often voiced when investing in a ski resort such as Kühtai from afar is the logistics that such an investment can entail.

With about 65 million visitors travelling to Austria each winter, there is strong demand for locations like Kühtai, especially with its proximity to Innsbrück  airport (35 minutes), ski and ski out accommodation and high altitude summer training camp, fuelling high occupancy rates throughout the year.

Finding The Right Stuff: Testing The New Skis For Next Season

Martin Bell Ski test in Kuhtai

Just like F1 drivers need to make sure their tyres can hold up under the power of their vehicle and the tight turns of a course, so too do skiers need to know that their equipment will be able to handle the intensity of a winter on the slopes.  Each year, the Snowsport Industries of Great Britain (or SIGB) hosts a testing session in the Austrian resort town of Kühtai, two kilometres above sea level.  Two dozen different ski runs flow in and out of this village, making it a perfect spot to test out equipment, while also providing property investment in Kühtai with ample opportunity for solid returns.  This serves as the third year that Kühtai has served as the testing grounds for SIGB and each year has proven the wisdom of hosting the tests in the city.  For a week prior to the ski equipment testing, Kühtai has reaped twenty-five centimetres of snow, with another 50 set to fall over the next ten days.

Who will be headlining the testing runs?  Martin Bell, who holds the distinction of the highest placement by a male Briton in the UK’s Olympic history, helps to run through the process along with skiing racer Edward Drake, freeskiing professional Peter Seight, and the co-director for the British Alpine and Snowboard School Becci Malthouse.  In addition to these professionals, a dozen trainers and instructors were on hand to see the runs through.

Testing out new skis may seem like a dream come true for many enthusiasts, but these pros need to go through as many as 14 different pairs in the span of a single day in order to determine the qualities of the equipment.  Skis are graded on everything from flexibility on long turns to the response on hairpin turns, and the testers give general performance reviews upon finishing the course.  No less than 764 pairs of skis will get a workout (a total value of over £300,000 worth of equipment) from brands like K2 and Salomon.  The results of the ski tests will be published in the Telegraph as well as Ski and Snowboard Magazine.

A rise in interest for Austrian resorts, especially Kühtai

Thanks to “The Jump”, a new reality TV programme in which celebrities compete in winter sport disciplines, there has been a recent upsurge in enquiries for Kühtai as a holiday destination.

The 12 participants including 5-times Olympic Gold Medal Winner Sir Steve Redgrave, Melinda Messenger, Marcus Brigstocke & Amy Childs took part in the different challenges ranging from speed skiing to ski jumping and the 2-man bobsleigh.

Graham Bell, Eddie the Eagle and Britain’s Gold medal winning Winter Olympic athlete Amy William were all on standby to coach the competitors.

Kühtai was an obvious choice for the staging of the event.

It is less than 40 minutes from Innsbruck and its airport which is served by Easyjet and many international carriers. Also, the pistes are uncrowded and at over 2,020m there is always lots of snow.