What should I look out for when buying an apartment building?

When buying an apartment building (in Austria known as a Zinshaus), a few central factors decide between success and trouble: location, building fabric, tenant mix and the need for refurbishment. Anyone who checks these points properly before buying avoids expensive surprises and knows the property's actual income.

The most important things to check

Location

The location determines lettability and how the value develops. Transport links, infrastructure and how the neighbourhood is developing are decisive. In Graz, the location often makes the biggest difference.

Building fabric

With older buildings in particular, the roof, façade, pipework and any damp need checking. Hidden refurbishment needs can quickly upset the calculation.

Tenant mix

Existing tenancy agreements, rent levels and terms determine the ongoing income. Old, very cheap agreements or empty units affect the value considerably.

You do not buy an apartment building from the photograph, but from the cellar, the roof and the tenancy agreements.

Check the documents carefully

Alongside the building itself, it is the documents that decide whether a purchase is a good one. They include the land register extract, existing tenancy agreements, operating cost statements and evidence of refurbishment work carried out. These documents show which income and which open issues you are actually taking on. Any conditions, planning designations or major repairs coming up can also be read from them. Anyone who checks thoroughly here avoids unpleasant surprises after the purchase. We look at properties with a manager's eye and tell you clearly which points need to be settled before you sign.

The figures behind it

Work the purchase through with realistic assumptions: rental income, maintenance, management and purchase costs. How that all comes together is shown in How do you calculate the return on an investment property?. Allow for reserves for future refurbishment, especially with older buildings. Whether energy refurbishment is due and what it brings is covered in How does energy refurbishment affect value?.

How we support you

We know the Graz market for apartment buildings, look at properties with a manager's eye and name the risks openly. After the purchase we take on the entire running of the building if you wish, see How is an apartment building managed?. That way you start with clear figures and a dependable local partner. Arrange a meeting.