Investment Apartment Market Report | Spring 2024

©Squarebytes

Tiergartenweg 32 8055 Graz

©IFA AG

Währinger Gürtel 134 1090 Vienna

Plabutscherstraße 63-67 8051 Graz

This is how builder-owner models work

With a builder-owner model, private inves- torsinvestintheconstructionorrenovation of a subsidized residential building. This is done either by purchasing a co-ownership share in the property (entered in the land register) or by participating in a limited partnership that owns the property. In combination with the favorable financing and tax benefits, the rental income, which is limited by the guideline value, also enables attractive after-tax returns. As rents are below the market level, the utilization risk is also particularly low in the case of owner-occupier models. The exit is often given too little attention but is important for the overall success of the invest- ment: Investors can either hold their shares for the long term and generate rental income or sell them on the secondary market.

The Styrian Bauherrenmodel PLUS (builder-owner model PLUS): Styria is currently the only federal state to of- fer the „Bauherrenmodell PLUS“, in which buil- ders acquire a participation that is allocated to a specific apartment. The personal share in the property is entered in the land register and condominium ownership is established after completion of construction. When the subsidy expires, in this case after 20 years, the ho- meowner is free to dispose of his apartment and can rent it out without rent restrictions or use it himself. In a way, the Bauherrenmodell PLUS is a hybrid of the builder-owner model (with all the tax advantages) and the invest- ment apartment, which the owner can manage himself.

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