Stadthaus zum Spitzenpreis! Bauherrenmodellfähig

The large town house is located at the beginning of a pedestrian zone and at the end of a pleasant square at the Red Fountain with restaurants, a pub and a coffee house, in the popular and central Steyrdorf district, not far from parking garages and public car parks. Because of its proximity to the old town and the campus of the University of Applied Sciences, the smaller and larger apartments in the property are ideal, among other things, for rental to students.

The ground floor was long used as a bakery and café and now houses numerous vacant rooms in different sizes for use as leisure, hobby or storage spaces for bicycles, strollers or the like.

On the 1st and 2nd upper floors there are larger and smaller living spaces that—because they are partly equipped—can be used immediately as student apartments. These could also be adapted to several smaller apartments and then rented out properly, while the attic is inhabited by the owner themselves.

In the attic, the well-renovated, two-storey maisonette with an open atrium and a roof terrace is still inhabited by the owner. He would also be happy to remain there as a tenant for the next 2 to 3 years for a net annual rent of € 12.000, if there is no personal need.

What should be emphasized here is especially an elevator that is barrier-free to all floors!

The exterior may appear inconspicuous, but inside it impresses with its old building charm! Wrought-iron doors, vaulted and stucco ceilings, varying room heights and completely irregular floor plans of the rooms make the heart of a lover of old buildings beat faster.

In addition, a historic arcade passage provides a special old-town atmosphere, which is naturally also reflected in the rustic inner courtyard. Further back there is also a small garden laid out in terrace form.

The house is of course connected to all local utilities such as gas, water and sewer.

The extremely favorable entry price and the possibility to rent parts of the property profitably make this town house an affordable TOP object for owner-occupiers and also for aspiring investors!

Because of the barrier-free access with the elevator, the central location with schools, doctors, many shopping opportunities and public transport connections, the house is also ideal for large families as a generation living residence.

In any case, this property is a sensational opportunity for all who want to invest their money profitably, securely and sensibly in uncertain times! Therefore, arrange a viewing appointment with us today!

Short depreciation of renovation costs due to historic preservation is possible (builder model).

Create value and save taxes!

How that works is quite simple with a builder model! We gladly advise you together with our tax experts about the possibilities of a large or small builder model, which is tailored exactly to this property. The initial information can be found in the “Other details.” This property is also offered by Top Real as a builder model!

What is a builder model and who is it interesting for?

• Builder models are based on the principle of “subsidizable investment strategies” and primarily aim at the creation of affordable housing by private investors.
• In the area of letting and leasing, tax advantages can be achieved through partial deductions, and the income is generally not affected by the tax loss offset prohibition.

How does a builder model work?

• To be able to use the benefits of a builder model, investors form a co-ownership community and jointly acquire a property.
• Subsequently, the members of the community become active as builders and renovate an existing building.
• Afterwards, the property is collectively rented long-term.
• Important to know: The investors do not acquire an apartment or a commercial object, but shares in a property that are secured by a land register entry.
• The individual investor does not receive the rental income of a specific apartment, but participates in all rental income in proportion to their co-ownership share.
• This provides risk diversification for the investor. The default of a single tenant thus affects the individual investor only very slightly.
• Builder models are particularly suitable for older buildings, i.e., residential and commercial buildings, where renovations are pending.

What financial advantages does the builder model offer?

• The peculiarity of the builder model is that the construction costs can be deducted for tax purposes over 15 years and not, as is usually the case with a condominium, over 67 years.
• Additionally, various development costs during the construction phase are deductible, resulting in initial losses that can be offset against other tax incomes, which leads to tax credits.
• For the investor, this creates a not insignificant tax deferral effect.
• If the investor finances the property purchase largely with external capital, interest can also be claimed for tax purposes.

What speaks for a builder model from TOP REAL for a Steyr property?

• The renewal and beautification of our old town has been close to our company’s heart for more than two decades. For a successful revitalization, we believe in good cooperation with predominantly regional professionals, who also keep local economic cycles in motion and secure jobs. With our projects, we provide impulses for urban development and thus make a significant contribution to the enhancement of residential quartiers.

Large or small builder model?

• The choice of builder model depends on the prerequisites you bring, the willingness to act as a builder, and the preferred tax treatment. We are happy to advise you together with our tax expert to support you in choosing the investment strategy.
• Essential differences between the small and the large builder model:

Large builder model

• The prerequisites
• •No uniform contractual framework (contracts for property purchase and construction measures do not form a single economic unit);
• •Manufacturer initiative with the construction applicant (influence in planning);
• •Manufacturer risk borne by the construction applicant (financial risk – agreeing to a fixed price is usually detrimental).

• The tax consequences
• •Input tax deduction for construction costs in the case of taxable rental;
• •Real estate transfer tax only on the acquisition costs (possibly including VAT) of the property;
• •No exemption from real estate gains tax for self-constructed buildings due to the income from renting and leasing.
• •Accelerated deduction of maintenance and manufacturing expenses over 15 years;
• •Immediate deduction of ancillary costs not related to the construction of the building, such as concept and consulting costs, as well as financing costs.

• Small builder model
• The prerequisites
• •Breakdown of the services of the executing companies in the final invoice;
• •No unrestricted fixed or maximum price guarantee (the taxpayer must cover for additional costs due to special requests or official requirements);
• •Commencement of construction works (first shovel) after acquisition of the property.

• The tax consequences
• •Accelerated deduction of maintenance and manufacturing costs (see above);
• •Input tax deduction is given if taxable rental occurs;
• •Ancillary costs directly related to the construction or renovation are allocated to maintenance and manufacturing costs up to 25% (distribution over 15 years), costs beyond this are attributed to the acquisition costs (distribution over 50 or 67 years);
• •Real estate transfer tax on acquisition costs (including VAT if the seller opts for taxation) plus manufacturing costs (gross including VAT);
• •Immediate deduction of ancillary costs not related to the construction is restricted by jurisprudence; exception e.g., financing costs.

The distinction between large and small builder models is rejected by jurisprudence despite the existence of the builder's regulation, and the immediate deduction of costs is instead determined by whether they are not related to the acquisition or manufacturing costs.

The contents were taken from the sources named below and adapted to our offer:

WertSecure GmbH, Landstraße 4-6, 4020 Linz

TPA Steuerberatung GmbH, Wiedner Gürtel 13, Turm 24, 1100 Wien, 1x1 der Immobilienbesteuerung 2024