Bauherrenmodelle (Build-to-Rent for Private Investors)

 

When investing in a Bauherrenmodell, a form of Build-to-Rent for private investors, you can buy a share of a larger property. The Austrian government often awards subsidies for construction projects that focus on renovating existing properties and use old buildings as a basis. Investors can write these projects off against tax over a period of 15 years.

 

In Styria, you can opt for a special form of this model: By investing you acquire a percentage of a building that is allocated to a residential unit. The process of allocating is called Parifizierung. You are therefore the owner of a residential unit while enjoying the advantages of a Bauherrenmodell.

 

 

Bauherrenmodelle are subsidised by the state, so as an investor you can profit from many tax benefits. Grants and subsidies from the federal, state and local authorities are used to further increase the investment’s profitability.

 

The risk of not finding tenants is low. This is because there are statutory limits on rental prices for Bauherrenmodelle during the amortisation and subsidy period, currently around €7.50/m² (as of 2022). This makes the flats very appealing for tenants, which increases demand. In case of loss of rent, the resulting losses are shared among all owners so that it does not affect just one investor.

 

Depending on the specific Bauherrenmodell, the minimum amount of money that you can invest is around €150,000 – €200,000. This form of real estate investment is certainly one of the most interesting ones in Austria, especially if the increase in the property’s value is also taken into account.