Top 5 apartments in Vienna for buying by foreign investors

Apartment in the center of Vienna - PALAIS HANSEN

PALAIS HANSEN is 17 exclusive apartments with city views. It was built in the Renaissance Revival architecture style back in 1873 by Theophilus Hansen for the International Exhibition.

To date, the Palais Hansen has been completely restored to the smallest detail and almost all apartments are sold.

Palais Hansen offers a wide range of services for the comfort and convenience of residents: daily housekeeping, dry cleaning, laundry, taxi service, airport transfer, spa, swimming pool, fitness center, babysitting (surcharge) - lounge, and lobby bar, etc.

Palais Hansen is located in Vienna's first district or Inner city on The Ringstrasse and is heavily guarded as a monument of architecture. Due to its convenient location, just 0.6 km from the city center, it attracts many tourists every year.

Transport

The Schottenring metro station is a 3-minute walk and the Schottentor station is an 8-minute walk.

Franz Josef Train Station - 5 min drive.

Vienna International Airport (VIE) - 26 minutes by car.

Nearby sights

• There is Stephansplatz square and the most famous street in Vienna - Graben within walking distance from Palais Hansen.
• Sigmund Freud Museum - 9 minutes
• Judenplatz - 10 minutes
• Natural History Museum - 14 minutes
  
• St. Stephen's Cathedral - 15 minutes
• Hofburg Imperial Palace - 15 minutes
  
• Wiener Rathaus - 17 minutes
  
• Vienna State Opera - 20 minutes
• Ferris wheel Riesenrad - 30 minutes
  
• Prater Public Park - 9 minutes drive
  
• Belvedere Palace - 11 minutes drive
  

The most convenient way to see them all is using a traditional Viennese cab. Wolfgang Fasching and his crew wait in front of the hotel. The trip can last 45 - 60 minutes, Fasching will tell the history of the city and the sights along the way.

Parkapartments Am Belvedere

The Park apartments Am Belvedere is the only project in Austria planned by the architect Renzo Piano so far. It is located in the Belvedere district on Arsenalstraße street. The premium class residential complex with its infrastructure consists of 3 high towers and includes 346 modern 2-6-room apartments from 46 m² to 300 m². Each has a utility room and a balcony, loggia, or terrace.

The residents of the complex can buy underground parking spaces, a laundry room, a storage room for bicycles and strollers which will be available for 99 years. Prices for apartments start from €400,000.

Features:

• Apartments of various floor plan
• Panoramic windows, balconies, loggia, terraces
  
• Electronic Concierge
  
• Smart Home
  
• Ceiling cooling system
  
• Sun protection system
  
• Laundry and dry cleaning
  
• Parcel delivery service
  
• Underground parking
  
• Charging stations for electric cars
  
• CCTV (Closed-circuit television)
  

Location

Park Apartments AM BELVEDERE is placed a 10-minute drive from the historic center of Vienna - the Innere Stadt district, the Schweizer Garten park is a 15-minute walk, and just a 5-minute drive from the historic Belvedere Gardens and the University of Vienna Botanical Garden.

The area around the complex provides all the necessary infrastructure, shops, restaurants, cafes, sports clubs, as well as cultural and historical places, museums, and theaters.

Public transport: Express S-Bahn, tram lines D, O, and 18, and bus stops are within 5-10 minutes walking distance. Keplerplatz and Südtiroler Platz metro stations are within a 20-minute walk.

The train station and the Hauptbahnhof shopping center are within a 5-minute drive. Schwechat International Airport is within 20 minutes drive.

How to register a property in Austria?

EU citizens have equal rights to buy real estate in Austria as Austrians. However, there are many restrictions for non-EU citizens, which differ depending on the type of real estate, the region, and even a specific object. Like in most Austrian cities, you can buy apartments in Vienna if you are an individual provided that you have a residence permit in Austria. If not, then you need to register a legal entity. It can be a company in Austria or another EU country.

In Graz and some other municipalities in the south of Austria, you can buy an apartment as an individual, even without EU citizenship and a residence permit in Austria.

To buy tourist apartments, as a rule, you need to have a residence permit in Austria or a legal entity. In this case, at least 51% of the legal entity must belong to an EU citizen or another company registered in the EU.

Any rule has an exception. There are tourist complexes which foreigners can buy as individuals. Clarify the details for each specific object. Purchasing real estate in Austria is a complex topic that requires specialist advice.

Profitability

The profitability level varies depending on the specific object, but the most stable income you will get from tourist apartments and investment apartments (3-4%). The advantage of tourist apartments and investment apartments is that the investor receives income according to an agreement with the management company, even if the apartment remains vacant. The yield can be fixed or unfixed. Most often this is decided by the management company. Sometimes a management company proposes to choose: a fixed rate of return for a shorter term of use, or an unfixed rate of return for a long term of use.

Liquidity

Apartments in Austria are the most liquid for investment: if necessary, they can be quickly sold if located in the largest cities of Austria with high business activity.

The situation with the sale of tourist apartments is rather complicated. Such a property is burdened with contractual obligations of the owner and the management company, which may not be suitable for the investor. There will always be a buyer or tenant for apartments in large cities while the demand for tourist accommodation largely depends on the economic situation.

Selling a mini-hotel is more difficult compared to rental properties. In the case of incorrect management, such an expensive asset can quickly become liquid for potential buyers.

Management

In terms of management, tourist apartments are the best option for investment. Under an agreement with the management company, the owner receives a fixed profit on his property and does not bother about finding tourists.

Such a scheme is possible in the case of buying an ordinary apartment: often Austrian construction companies are managing and searching for tenants at the same time. Since the costs of utilities and real estate tax fall on the tenant, the owner can only pay for the services of the management company and income tax, as well as pay to the repair fund.

Mini-hotels are the most difficult in terms of management. If your mini-hotel does not exceed 50 rooms, then hiring a manager does not make sense due to the high remuneration of his work. To pay taxes correctly, you need tax advice. After all, the investor should learn German in different dialects to provide sufficient service.

Conclusion

Housing rent in Austria rose by 13% from 2009 to 2013, which is an average of 2.6% per year. This growth is mainly driven by an increase in the number of private tenants who don't have governmental support.

The most popular apartments for rent are located in the largest cities of Austria - Vienna and Graz. The population of both cities is growing due to the increase in jobs and the influx of students. Therefore, buying investment apartments in Vienna and Graz is a great opportunity to profit.