New impulses for a timeless investment classic
Today’s macroeconomic climate and the demand for affordable housing are a good match for the builder-owner model and offer private investors an interesting alter- native with attractive options..
Builder-owner models
The builder-owner model has disappeared from public and media attention in recent years. Why is this the case?
The builder-owner model is a classical niche product that has always been an interesting alternative for the right target group. This real estate asset class has never lost its importance, even in volatile economic times. In contrast, real estate provides security, protection against inflation and plays an important role in portfolio diversification. IFA AG (Institut für Anlageberatung) transferred 774 subsidised apartments with 59,200 sqm of usable space from 2022 to 2024 and, in doing so, made a valuable contribution to affordable housing. The builder-owner model is becoming an increasingly important element, particularly for personal pension planning.
What are the main target groups for builder-owner models?
Builder-owner models are a good investment alternative for people in higher tax brackets because they can optimally utilise the initial tax losses. For example: The main target groups are freelance professionals like doctors, tax advisors and attorneys or even professional athletes.
What are the advantages and disadvantages of a builder- owner model compared with investment apartments?
The most important advantage of the builder-owner model is the 1/15 accelerated depreciation and the higher immediate write- offs at the beginning. Rents under the builder-owner model are capped during the subsidy period (20 years in Vienna, and
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