Jakob Weinrich, LL.M. - Your lawyer in Vienna.

Real estate - keep your eyes open when buying!

Whether it's an investment apartment or your own four walls - low interest rates mean that banks are tempted with favorable financing offers. The deal is also usually signed and sealed quickly: viewing appointments go well, the price is negotiated and the purchase offer is signed.

But be careful, a second or even third look may be worthwhile - in any case, you should pay attention to a few things:

Investing in a property is a far-reaching decision for many. The purchase of an apartment should therefore be carefully considered - this already begins with the financing of the property. Here, it is particularly important which interest rate you receive (variable or fixed) and how high the contributed equity should be. Depending on the loan amount, you can already save costs at this stage: Banks enter liens in the land register to secure the loan. In some cases, a registerable pledge certificate is sufficient for the bank.

Furthermore, you should be aware of the ancillary costs in advance. In the case of a debt-financed purchase of an apartment, you can usually expect additional costs of approx. 10-12%. These include the costs for the loan:

  • Real estate transfer tax
  • Costs of drawing up the contract by the lawyer
  • Registration fees for right of ownership or lien
  • Notarization by a notary public

With regard to warranty claims or claims for damages, you should also take a look at your contractual partner. In addition, you should know exactly about the condition of the property anyway. In addition to the structural condition of the apartment, you should also clarify the following points:

  • Amount of the repair reserve
  • Stock of (off-book) loans of the (residential) owners' association
  • Outstanding taxes, levies or operating costs
  • Pending legal proceedings
  • Presence of all official approvals

Often, major renovations to general parts of the house, such as the electrical system, have been done recently or are planned.

If you buy an apartment as an investment property, you should make sure whether the building is listed or has a subsidy, as this will affect the level of rents and profitability.

We will be happy to assist you with the execution of the purchase contract: from the negotiations to the drafting of the purchase contract to the fiduciary and land registry processing - we take care of all the steps.