Edi-Finger-Straße 7c 1210 Vienna
The KIM Ordinance in the preventive investment
Provisions of the KIM Ordinance
with the regulation in principle when financing the purchase of investment apartments and must check whether the borrower meets the criteria. However, there are considerable differences in the application of the regulation to the financing of owner-occupied apartments. In particular, the expected rental income must also be considered when determining the per- missible amount of the monthly installments. There are also constellations in which the KIM Regulation does not apply at all, especially if the purchase qualifies as a commercial activity. This is the case, for example, when an investor buys a large number of apartments in total (most banks set the limit at four to
five units). Even if the purchase is made by a limitedliabilitycompany(GmbH),thepurchase is commercial - this is possible in the case of sole proprietorships or partnerships but must be checked on a case-by-case basis. Although the KIM Ordinance is a hurdle for investors, it is generally easy to overcome.
· To be applied when granting loans for the private purchase of residential real estate
· At least 20% equity · Monthly repayment
installment: max. 40 % of the household income
· Term: max. 35 years
The primary intention of the KIM Ordinance is to prevent households from purchasing condominiums that exceed their financial means. Nevertheless, banks must also comply
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