Austrian Tenancy Act
The Association of Institutional Real Estate Investors – VII specifically comments on crucial tenancy matters in public, engages in the political discourse and keeps contact with significant stakeholders, such as political parties, public authorities, chambers, tenant associations etc.
The VII stands for:
- a Modernization of the Austrian Tenancy Act (MRG)
- taking out commercial leases completely from the Austrian Tenancy Act (MRG)
- upgrading the Austrian legal position to European Standards
Furthermore, the Association supports private ownership, because:
Freehold flats defend landlords from rising costs and rents
Rising rents specifically, as well as the property’s appreciation potential make residential properties an attractive asset for buyers.
Freehold flats as a form of retirement provision
Private ownership represents a crucial element of retirement provision. Rent-free occupancy in old age means considerable cost savings, especially against the background of future lower national pension rates. Who doesn’t have to pay rent in old age, has more money at the free disposal. This results into a higher quality of life.
Landlords own more assets than tenants
Even with equal income, tenants’ households build up less financial assets. Landlords aged 55 to 59 own about six times more financial assets than tenants, according to studies of the market research institute empirica.
Potential inflation protection
Even with a low inflation rate at 2 percent, the purchasing power of financial assets decreases significantly: with an inflation rate of 2 percent, after ten years, EUR 20,000 drop down to a value of EUR 16,500. Freehold flats offer the prospect to a valuable protection against inflation, as the asset value will be maintained as a rule.