“Easy money” easy money: interest rates at all time lows, cheap mortgage lending and a system emergency, have apartment real estate such as mushrooms from the ground shooting. Some of them were Ghost towns. And are there still. Their administrations excavators with Free Rent and Parking for the full cast (LOOK told).
the so-Called investment properties – real estate such as multi-family houses, which are held by investors as a financial investment – will receive from 2020 onwards, a stricter regulation. The banks themselves proposed to occur on the brake.
risks in the multi-family house market
According to the financial market Supervisory authority Finma will be new borrowers in mortgage lending for rental or other investment properties of the lending own funds of at least 25 percent of the loan value requested. So far, there were only 10 percent. In addition, the mortgage must debt a new ten years within the will be amortized in two-thirds of the lending value.
the reason for the regulation: The national Bank SNB sees on the multi-family house market, the major risks for banks and households. Also, because the net migration is expected to continue to decline, which makes the rent larger premises.
consequently, the empty stands back? At least they are likely to grow less quickly.”We expect that the tightening is contributing to a slight easing in new housing construction and trading of investment properties,” says Robert Weinert, Immo-expert Wüest Partner to VIEW. “As for individual investors, especially private investors, is not expected to be debt financing is now possible.”
Again, an empty record
in September-the publication of the vacancy in Switzerland is expected With voltage. The residential vacancy rate is a well-established core size for the assessment of the Swiss housing market.
First, the cantons and the cities that have reported their holdings already. “The number of empty homes has grown in the current year less than in previous years,” write the Immo-experts Credit Suisse (CS) in a first analysis. According to their extrapolation is expected to have increased the vacancy rate for Switzerland as a whole to 1.7 percent (year-on-year to 1.62 per cent). Nevertheless, it was a value that was surpassed over 20 years ago.
In absolute Numbers, attributed to the CS, that 4000 new are empty come apartments on the market. The Plus is likely to remain clearly below the growth of the previous year of 8,000 residential units, it is called.
the UBS: “We do not expect an acceleration of construction activity. The negative interest-rate world are likely to cement the vacancy, however, the currently high level.”
consequences for tenants and homeowners
in Spite of currently being super-cheap mortgages is the Immo-experts UBS expect in the medium term, “the cost advantage of the home compared to a rental apartment is likely to”, as it says in a recent study.
The Rent would currently fall significantly, so that the rental charges were at least in the case of large flats a lot about the cost of maintenance, taxes and interest, as well as age-based depreciation of the property.
This development could, in turn, contribute to the spirit settlements spread as strong as in previous years. (uro)