Karina Schunker Managing Partner EHL Wohnen GmbH
apartments since the corona pandemic and a greater interest in good apartment layouts that include an extra bedroom – factors that reflect the growing demand by potential tenants’ for home office opportunities. Additional markets New attractive markets now complement the tra- ditionally robust, diverse offering in Vienna. Strong investment apartment markets can now be found in all cities/regions with structural, sustainable population growth. Included here are provincial capitals like Graz, Linz, Klagenfurt and St. Pölten, increasingly also the affluent suburbs surrounding Vienna and medium-sized cities with stronger economic development like Villach. Lower debt component The equity component required for the purchase of investment apartments is increasing contin- uously. On the one hand, this limits the realisable yield but, on the other hand, it leads to greater security and reflects the primary goal of many investors – which is to ensure long-term protection for the value of their assets with an investment apartment. Owner use as an option The previously strict separation (required by tax regulations) between investment and owner- occupied apartments is progressively fading. The growing popularity of apartments for private investment has led to new groups of investors, and personal use (by the buyer or a family member) plays an important role for many of these first- time buyers. In order to keep their options open, many investors are waiving the potential tax benefits. This is particularly true for buyers whose investments do not regularly include apartments.
Long-term stability for your assets
Speaking about security in an environment as volatile as the one we are currently experien- cing could, at first glance, be considered overly optimistic. But uncertainty over the next few months – and perhaps one or two years – will not change the long-term stability provided by an investment apartment for your assets. This stability is based on demographic de- velopments that can be predicted for several decades in advance. Steady population growth is projected for numerous regions, and that will lead to a substantial demand for additional housing and, in turn, good rental opportunities for the investment apartments currently under construction. The exit from fossil fuels also creates advan- tages for newly built properties that now meet future demands. In addition, greater awareness over the negative aspects of ground sealing will tend to slow the construction of additional housing in popular locations. Most of all, the rapid increase in inflation is the major cause of anxiety this year – and the strongest argument in favour of real invest- ments. High negative real interest rates, and a cor- responding upward potential for rents due to indexing, make today’s investment apartments, more than ever, an optimal, long-term invest- ment with upside potential and the greatest possible security.
5
Powered by FlippingBook