Is this the right time to sell property in Austria online? It probably is, largely because prices in Austria are at their highest point right now than they have been for a long time.
Austria was virtually unscathed by the 2008 recession and the outlook for the Austrian property market in 2016 and beyond continues to remain good as well. The question to be asked is, are we sitting on top of a real estate bubble in Austria?
There are no easy answers to that. Austria has one of the most stable economies in the world and a very conservative banking system, which takes care to discourage any speculative buying in real estate. The 2008 recession was actually a good thing for the property market in Austria as a lot of people preferred to invest in properties rather in the stock market, as real estate was considered to be a much safer investment.
Now, in 2016, the fast rising housing prices have made real estate unaffordable for many young Austrians looking to buy their first homes. While property prices in Vienna and other cities in Austria are certainly lower compared to cities such as London or Paris, they are not much cheaper either. T
There’s a strong feeling among the young people in Austria is that it is impossible for those who are just starting out in their career to buy a home of their own. The only young people who have their own apartments in Austria are those who have inherited them. Certainly, young professionals have been priced out of the real estate market in Austria.
Even so, there are a plenty of bargains to be had in Austria, according to Christian Sommer of Engel & Voelkers, who says, “If you want to spend maybe 6,000 or 7,000 Euros per square meter, you can get good quality in a good location. That puts us in a good situation compared with other international locations. You get two or three times more here for the same price.”
What affected the Austrian property market more than anything else is the situation in Eastern Europe. 2015 saw the Russian economy on a precipitous decline and the possibility of a serious military conflict between Russia and Ukraine. A lot of real estate watchers in Austria were worried about this, particularly because a vast majority of foreign buyers who invest in Austrian properties are from Russia and other countries in Eastern Europe. Now, with the conflict in Ukraine dying down, this could be good news for the housing market in Austria.
Indeed, according to real estate analysts, 40% of the buyers in the high-end residential market in Vienna are foreign nationals, most of them being Eastern Europeans. Wealthy individuals from Eastern Europe are attracted by Austria because of cultural similarities and also because they consider Austria to be one of the safest havens for their investment.
Foreign nationals also feel very secure in Austria. In Austria, nobody really cares where anyone is from as long as they follow all the laws of the land and pay taxes on time. Austria is a very free and open society that makes everyone welcome. This certainly makes Austria one of the best destinations for overseas property.
Buying property in Austria is pretty simple for those from European Union countries – they enjoy the same property rights as local Austrians. Those from other countries will have to obtain permission from the government before buying a home in Austria, but that is easy to get, and hardly takes few days.
If you’re looking to sell property in Austria, you will be required to pay a flat capital gains tax if 30% on the sale of your property. This is according to the new law that has come into effect since January, 2016.