looking Who is the “good old days”, is often ridiculed. However, if one looks at the developments in the Swiss real estate market, appear to be in the last days not so bad: For those who wanted to realize the dream of home ownership, was much better. Especially the real estate prices have risen in the last ten years. This shows a comparison of Wüest Partner to the sales prices for residential property in the ten biggest Swiss cities and the surrounding area.
single-family homes were Examined with 170 square meters, as well as condos with 110 square meters of living space. Between 2009 and the first quarter of 2019, these properties have experienced a stark increase in the price. First of all the condominiums in the city of Zurich: of 64 percent, selling prices increased in the last ten years. Specifically, this means: Instead of just over a Million Swiss francs, now 1.65 million will have to be flakes. Single-family homes experienced an inflation rate of 47 percent.
low interest rates make real estate an attractive purchase
The demand for residential property is increased, and thus the prices: the main drivers are cost, according to Robert Weinert (40) of Wüest Partner, the extremely low mortgage rates and thus, lower funding than a decade ago. To secure economic growth have come since the 2008 financial crisis: “unemployment is low, incomes tend to be increased, and the Inflation was between 0 and 0.5 percent,” says Weinert. An impact, although slightly lower, had the strong population growth between 2008 and 2014. Those who remained longer in the country, thought more about the purchase of real estate.
In relation to the sale prices have changed, the wages in the last ten years, however, only moderate: Between 2008 and 2018, according to the Federal office for statistics, an increase in the nationwide Median gross wage of 8.4 per cent account for. Median means half the workers earned more, half less than the specified gross wage.
more specifically, the increase in but deeper, with inflation eating the soft wage increases in the past years. In 2018, the Wage growth of 0.9 percent corresponded to the inflation.
Tighter rules in mortgage lending
purchasing is Not only the increased purchase prices, and the tightening up of rules for mortgage lending make it difficult for the house. In 2012, the minimum amount of own funds has been adjusted in the case of the financing: at Least ten percent must come from own resources and not from the advance withdrawal of the second pillar, as it was previously possible. In addition, the mortgage must be amortized debt since 2014 after 15 years on two-thirds of the loan value.
is granted If the prospective home buyer financing, depends on the Affordability calculation. This sets the current expenditure for the property in relation to gross income. The rule of thumb is that housing costs are a third of the income should not exceed.
In advance and be well
for advice But even those who think they could the property, can not fail to clear the Five-percent-hurdle. Although interest rates are currently as low as never, and in part under one percent, expect the banks for mortgage lending usually with an imputed interest rate of five percent.
For the income that is, For a sale price of one Million Swiss francs in 2009, the annual gross income should be according to the Affordability calculation at about 175’000 CHF. 2019 looks very different: Almost 300’000 Swiss francs should be the gross wage for the same property.
“Also anyone who believes that to meet the affordability with the currently low interest rates, perhaps a funding partner,” says Nicole Fankhauser (31) of the money Park. She advises to be informed before the property search well.