I often get asked “What is the best type property to invest in ?
Well, I guess it is subjective depending on what you want from a property investment short or long term?
Do you want to buy at best price, have an income and also capital growth in the property’s value and no inheritance tax? Or perhaps all four!
One of the best directions, that I suggest to our clients to consider is a Wohnrecht property. What is a Wohnrecht property you may ask?
Well, these are properties that have been in families for a generation or two. The young have left the home and have their own properties, so the elderly family owners, want to release equity for their children and suppliment a pension, but want to stay in the house The word Wohnrecht means ‘ a right to live in’ so that if you buy this type of property the current owners get to live in it until their passing.
Why would I want to buy a property to share with a couple of pensioners! Who knows how long they would live for?
A normal reaction, but stop for a moment and let me give you another aspect to consider.
1. These properties are considerably cheaper than current market values.
2. They are generally large enough for there to be no lack of space for a new owner to use also.
3. This can mean, a large separate apartment for a new owner, which can be holiday rented.
4. It also solves the problem of trying to find someone to manage a holiday rental, as the current owners are normally more than happy to manage for a new owner, as they know the house very well.
5. Capital gain increases are generally around 3-5% p.a. in Austria. More in popular lake or ski areas. So with each passing year, your investment is growing. Also, there is no inheritance tax in Austria, so you can hand to your family with less stress or large tax bills!
6. You get to make friends with an Austrian family who can help smooth the way for a new owner in Austria.
So, what is not to like? ..think about it🙂 If you feel this could be the type of investment for you, then email us for more info and guidance on Austrian property.
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