Austria beckons second-home buyers

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by Gill Montia

Austria is gaining prominence as a destination for a second home because properties are often cheaper and easier to buy than in other European countries.

According to Daily Mail journalist, Liz Rowlinson, the Austrian property market is undergoing a change as it moves away from providing for holidaymakers and enters the second-home market.

Prices in the country have remained stable in recent years and the number of homes changing hands each year is relatively low. However, new EU regulations have made mortgages more readily available, encouraging buyers from abroad.

Property prices in Austria are now rising at between six and seven per cent a year and the country has been included in the “20 best locations to secure positive returns” by the BBC’s “A Place in the Sun” programme.

Capital gains tax is charged at 50% but this can be avoided altogether if a property is owned for at least 10 years.

Some local restrictions apply. For example, foreigners buying a second property in Austria must agree to make it available to rent through the local tourist office.

Prices vary widely according to the proximity of a property to local amenities and skiing. Some British buyers are now being drawn away from the Alpine areas to the southern provinces, which offer lakes, forests, and mountains and a more Mediterranean climate.