Help I dont get it ! Property prices !
Discussion
The Swiss housing market is a bit of an enigma and more than 50% of the population is 'happy to' rent for their entire lives. That may be changing a bit but the government is presently considering proposals to limit the use of pension assets to finance property...
If you check out the homes.ch website and the "what's my property worth page", you can put in some dummy figures and see a bit of price history.
Rather alarmingly, it shows that if you paid CHF500k for an apartment in 1992, you would have seen the value drop year on year for 10 years (!) and even now, 20 years later you would not have broken even in CHF terms. The last 10 years though have been very strong and this is amplified if you 'think in Pounds'.
Historically, it's never been possible to borrow more that 80% of 'the bank's valuation' so you need a big deposit if your transaction price is above the 'valuation'.
You certainly don't get much for under CHF 1m but probably best to start talking to banks about what they would lend you against a possible target. Remember, even if you don't need a mortgage, it is 'tax-efficient' to have one as you can offset your interest expense against the deemed rental income value.
Is it a bubble? Possibly, but even the banks are stopping short of calling time.
If you check out the homes.ch website and the "what's my property worth page", you can put in some dummy figures and see a bit of price history.
Rather alarmingly, it shows that if you paid CHF500k for an apartment in 1992, you would have seen the value drop year on year for 10 years (!) and even now, 20 years later you would not have broken even in CHF terms. The last 10 years though have been very strong and this is amplified if you 'think in Pounds'.
Historically, it's never been possible to borrow more that 80% of 'the bank's valuation' so you need a big deposit if your transaction price is above the 'valuation'.
You certainly don't get much for under CHF 1m but probably best to start talking to banks about what they would lend you against a possible target. Remember, even if you don't need a mortgage, it is 'tax-efficient' to have one as you can offset your interest expense against the deemed rental income value.
Is it a bubble? Possibly, but even the banks are stopping short of calling time.
A joke to put it all into perspective......
A foreigner arrives at a swiss bank and asks to open an account
He is met by a manager who asks how much he wants to deposit.
The customer whispers "2 million pounds"
"There's no need to whisper, sir, there is no shame in being poor!"
OK I'll get my coat!!!!
A foreigner arrives at a swiss bank and asks to open an account
He is met by a manager who asks how much he wants to deposit.
The customer whispers "2 million pounds"
"There's no need to whisper, sir, there is no shame in being poor!"
OK I'll get my coat!!!!
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