Investing in real estate in European cities like Vienna or Hamburg has become a popular trend in recent years. Due to the well-developed infrastructure, great living standards, and good economical and political environment, these cities have become attractive not only to local buyers but also to foreign investors.
Meanwhile, the US and Canada remain among the most promising markets for real estate investment as they offer excellent earning opportunities.
So which country to choose? We’ll consider the options in this article.
Benefits of Buying Property in Different Countries
Being a property owner in another country gives investors a lot of possibilities. In some countries, when you buy real estate, you can automatically become a resident, and in others, you will receive many benefits as an investor.
Let’s see what are the best countries for investing in property.
In April 2020-March 2021, over $54 billion worth of the US real estate has been purchased by foreign investors, and here are some of the reasons why:
- The real estate market is relatively stable in the US, and property prices have increased by more than 20% over the last year. Moreover, they are expected to continue this growth trend. Thus investors would benefit from capital appreciation in the US dollars.
- There’s a high demand for rental properties in the US, so it’s easy to find tenants for your property.
Another country property investors should consider is Germany, and here are some main things that attract foreign investors:
- Germany is one of the largest economies in the EU, and its real estate market is considered one of the safest and most stable on the continent.
- Unlike many other countries, Germany has no limitations for foreign real estate investors — the conditions are identical to those enjoyed by German citizens.
Buying a house in Canada is a sound investment decision. And here is why it is worth purchasing real estate in this country:
- Canada has numerous tax advantages for real estate owners.
- The local real estate market has been experiencing steady growth over the last 20 years. For example, in Montreal, the real estate market increases by 5% every year.
If you are thinking about where to buy a house in Europe, Vienna in Austria should definitely be on your watch list for a couple of reasons:
- Prices in Vienna constantly grow, and they’ve risen by over 10% in 2021.
- 77% of housing in Vienna is rented, so you’ll easily find tenants to rent your property.
Taken from: https://unsplash.com/photos/5SjAaqqCCmY
Why Is Vienna So Attractive to Foreigners?
Vienna is a major foreign attraction to tourists, a great city for living, and an attractive destination for foreign real estate investors. Here are some of the main reasons why people want to find a property to buy in Vienna.
- It has a rich culture, many historical buildings, and museums that attract tourists. Thus, you can potentially monetize your property by renting it on Airbnb.
- It has a stable political ground. So, you can be sure that your investments are well-protected by Austrian laws.
- It has the perfect infrastructure and the city is rapidly developing. This means that the living standards are also rising as well as the property prices.
Now as we know what makes this city so attractive to foreign real estate investors, let’s learn about the main pros and cons of owning a property in the Austrian capital.
Pros and Cons of Owning a Property in Vienna
Vienna is considered one of the most comfortable cities for life in Europe and it has been nominated as the most live-able city in the world 10 times. That is why people from all over the world tend to buy property in the Austrian capital. But as you know, every city has its pros and cons. Let’s start with the advantages.
- One of the main reasons why you should buy property in Vienna is because of local laws. Citizens of European Union countries have the same rights as Austrians. They do not need a permit to buy real estate. Even if you are from outside of the EU, local laws still favor foreign investors and don’t expose any server limitations. Therefore, if you are solvent and have the means, you can easily purchase property in Vienna.
- Both residential and commercial real estate markets are constantly growing. Thus, you can choose the type of property you have the most experience with. If you consider purchasing a commercial property, keep in mind that the retail spaces are in the highest demand followed by office and hotel spaces.
Now let’s outline the significant disadvantages that owners of Vienna’s real estate may face.
- The prices for utilities in Vienna are quite high. Prices will be higher or lower depending on the size of your apartment. But you definitely shouldn’t count on prices lower than 200 or 300 euros per month.
- The prices for buying a home in Vienna are among the highest in all of Europe. Therefore, if you dream of buying a cozy apartment for your old age in the very center of Austria, be prepared to shell out hundreds of thousands of euros.
Is It Better to Buy a House or a Flat in Vienna?
Vienna is a city that skillfully combines both urban landscapes and suburbs. Naturally, here you can buy both a luxurious house and an apartment in a modern high-rise building.
- Buying a flat is a better idea for investors who plan to rent it on a daily, monthly, or annual basis.
- Buying a house is the right idea for those who have experience purchasing a newly-built property or renovating an old one and selling it for a higher price.
Investing in real estate in a foreign country may seem challenging. However, if you choose geography wisely and consider the local laws, you may yield significant profits. Make sure you take a look at property markets in the US, Canada, Germany, and Austria — especially Vienna.
Vienna is the city for real estate investment. Thanks to its culture and hospitality, the local property market is welcoming foreign buyers with affordable prices and a range of choices. It makes Vienna a very attractive destination for real estate buyers from all over the world.