New momentum for owner-builder models
The new macroeconomic environment and the high demand for affordable housing is helping this classic property, which has recently received less attention, and offers private inves- tors another investment option with attractive opportunities.
The background to this comeback is the strong demand for affordable living space, as builder-owner models are designed exclusi- vely for this segment. In the first 20 years, the apartments may only be rented out at the guideline value (without location surcharge) or up to a maximum rent that covers costs. The attractive return for investors of three to four percent after tax is achieved through a combination of capped, low-risk rental income and public support for the creation
of affordable housing: Part of the financing is provided by favorable public loans (regulated differently depending on the federal state, e.g. one percent fixed interest rate in Vienna). In addition, the property can be depreciated on an accelerated basis over 15 years instead of 67 and investors can claim the resulting tax loss as part of their tax assessment.
Short depreciation
The property can be depreciated over 15 years instead of the usual 67 years. This also results in tax-deductible losses.
Tax-mitigating
Advantages of the builder- owner model:
During the set-up phase, investors can use the calculated start-up losses attributable to their share to reduce their tax liability as part of their in- come tax return.
Subsidized loans
The subsidies vary depending on the federal state. As a rule, these take the form of very low-interest loans (e.g. one percent for a 20- year term in Vienna)
Small - Smart Invest
With builder-owner models, you can get started with a lower equity ratio and from an investment sum of around 50,000 euros.
Free market conditions
After repayment of the subsidized loan, the apartments can be rented out at free market conditions.
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