Kredit Austria: Key interest rate cut opens a short window of opportunity for cheap home loans

From 2025, new living space could become massively more expensive again. That’s why now is a good time for real estate investments, advise the financing experts at Kredit Austria.

Vienna/Graz (OTS) – House building, condominium or retirement apartment: “Kredit Austria” – one of Austria’s leading credit brokers for private customers, commercial customers and property developers for 30 years – is now expecting a turnaround in loan brokerage following the European Central Bank’s reduction in the key interest rate by 0.25 percent for real estate projects. “It has been interesting to take out loans again for a long time. However, the profitable time window for this is shorter than many people assume“, says “Kredit Austria” partner Gerfried Karner. According to financing expert Karner, the reduction in interest rates will lead to increased construction activity again, while at the same time rental prices will continue to rise steadily. “Due to inflation, increased personnel costs and continued high raw material prices, it can be assumed that new properties will become massively more expensive from as early as 2025. The best possible time for a real estate loan based on this assessment is right now or in the next few months,” says Karner.

With around 5,000 customers throughout Austria, “Kredit Austria”, based in Graz and with a financing focus in the Styrian, Vienna and Carinthian areas, has a meaningful credit trend barometer. This already shows a growing interest in loans for real estate projects. According to Karner, the reason for this is also the 2.2 billion euro housing package decided by the government, in which the states provide, among other things, loans of up to 200,000 euros at a maximum interest rate of 1.5 percent. “The exact framework conditions still need to be observed,” says Karner.

In general, Karner recommends continuing to use a fixed interest rate despite falling interest rates. In the optimal case, fixed interest agreements for up to 35 years are currently offered at 3.6 percent. The variable interest rate is currently around 1.5 percent above the best fixed interest rates. “This interest rate advantage for fixed-interest loans with full planning security is expected to decrease with future interest rate cuts,” says Karner. According to the financing expert, a further reduction in the key interest rate by the European Central Bank is to be expected this year and next. This means that excellent, long-term fixed conditions can be offered to buyers currently and in the coming weeks.

Karner: “As an expert in financing, it is of course our top priority that we find an optimal financing model for each of our customers that is individually tailored to their long-term life planning. We work independently of banks. The advantages are a neutral and rapid assessment of financial possibilities and, as a result, accelerated loan tendering and disbursement.”

Karner himself is considered one of the most experienced financial service providers in Austria: He can look back on 30 years of experience, including years in the management of banks in Austria. Karner also spent six years as managing director of an international financial group, responsible for the Austrian, German and Slovenian markets. With “Kredit Austria” as an innovative credit boutique, he and his employees have been implementing solid financing principles across Austria since 1994 in just five to ten days.

Karner: “Due to the complexity of the market and our 30 years of know-how with 5,000 customers and 1,000 network partners, our services as a reputable credit broker are in greater demand than ever. We are contacted by both buyers and real estate agents to guarantee the best possible and secure financing.”

www.kreditaustria.at

Questions & Contact:

Contact:
Mag. Gerfried Karner, EFA®, CFP®
Managing Partner
Andritzer Reichsstraße 15/7, 8045 Graz
Mobil. + 43 676 7417574
gerfried.karner@kreditaustria.at