although You cannot predict when a Crash is coming, but you can prepare for it. If you drive a car, you do not know, if and when you have a Crash. Nevertheless, you pull on the safety belt. Such safety belts are also available on property transfer. This seems to be the most matter. Drive belts of your real estate without security, without ABS, with worn tires and in a convertible without rollover protection. In the case of some property owners any sheet metal around missing the same round. So you are driving with 200 km per hour through downtown. This sounds exaggerated, but it is so.

There are many good reasons to invest in real estate. Above all, the interest rates are very low. That’s why homes have to be enfeoffed of high. They are often purchased with only 20 percent equity. The remaining 80 percent are borrowed, usually from a Bank in the Form of mortgages.

According to calculations from the mortgage broker money Park real estate in Switzerland were funded in the year 2018, the Median is only 26 per cent equity. So, if the real estate prices in a Crash, a break-in by 26 percent, or more, have lost 50 percent of people who have bought in the year 2018 a property in Switzerland, your total equity. This is not to say that are all going bankrupt – if you still have capital in hand.

margin or auction

must be in Switzerland with a Price decline of 26 per cent, or more expected? Yes, statistically speaking, around all is considered to be twenty years, with a collapse in the Price of even 40 per cent is to be expected. The white, Andreas Loepfe, Director of the center for real estate management at the University of Zurich. “The fact that the last Crash is already over 20 years ago, this does not mean, however, that the next one is in front of the door,” he adds.

such A Crash will certainly bring all of them in trouble, the mortgaging of your property with more than 60 percent and no capital in hand. You need to be aware that your Bank requires high Contributions. If you cannot pay, have to watch how his property will be subject to compulsory auction.

Many banks are in financial distress

Who, for example, has on his own home to the value of one Million Swiss francs a mortgage in the amount of 600’000 Swiss francs, is shot after a Price drop of 40 per cent of 120’000 francs nachschie, in order to reach a Capital of only 20 percent. If this is not possible in the longer term, is a foreclosure of the property with high probability.

Undoubtedly, there will be the next time you Crash, a lot of bankruptcies and auctions. This, in turn, that real estate prices are still to be ripped more in depth – it’s a vicious circle. Exactly the end of the 1980s/beginning of the 1990s, happened in Switzerland. “Individual properties have lost even much more than 40 percent of their value,” said Loepfe.


The Crash, many banks break with in-depth. A stress test of the Finma shows that around half of the tested Institute in the case of a real estate crisis in the 1990s, especially in the financing of investment objects under the threshold of the applicable capital requirements and new capital need, possibly bankruptcy would go.

it’s worth It to call in to the expiration of the real estate crisis 30 years ago in memory: We begin in the year 1989; in March, the Swiss news Agency (SDA) writes: “In the domestic market, the investment needs of the pension funds has helped to drive property prices to dizzying height.” Soon the prices will fall. In June 1990 is to be read in the newspaper “Cash” to: “more and more homeowners need to sell your home. Already the real estate start to decrease prices. Experts expect that property will be around 20 percent cheaper.”

to Some extent safe from a real estate Crash, who has financed his property today with at least 50 percent equity. After a price slump 40 per cent of the equity is under 20 percent, which is the minimum requirements. However, most of the banks in the small print of mortgage contracts at higher equity is an additional funding obligation rates. Therefore, only those are really to be on the safe side, the mortgaging of your property today with a mortgage of a maximum of 30 to 40 percent. You have even after a real estate Crash with a Price drop of 40%, a sufficiently high level of equity.

In the past decade, the transaction prices have risen by an average of 5,000 Swiss francs per square meter on the 6700 Swiss francs. In addition, the rates are to be offered to real estate (offer prices), usually a few percent lower than actual sales prices. This results in a so-called negotiation gap is the result in favour of the seller. You will receive for your real estate, usually more than you had actually originally expected. This can be a sign of Overheating in the real estate market. The development of the marketing period indicates: she fell from eleven to seven weeks. In spite of higher prices, so it takes less long, until the property finds a buyer. SOURCE: price Hubble

The professionals are much too optimistic. In February 1992, is to read: “land must be paid for in some regions of Switzerland by 30 to 50 percent less than two years ago.”

The real estate Crash has of course an impact on the banks have to write off mortgage loans. In March 1992, the SDA writes: “was one of the Swiss national Bank at the end of 1989 210 regional money houses, so it were the end of 1991, 189. Cyclical freeze and falling property prices have revealed structural shortcomings unsparingly.”

Many smaller banks are forced out due to losses in the mortgage business, from larger banks to take over. But when it comes to bankruptcies, such as that of Spar – und Leihkasse Thun. She goes a few months after their 125-year anniversary celebration in October 1991, bankruptcy,. Until then, she was the second-largest Bank in the Bernese Oberland.

The Crash goes on: real Estate auctions, Bank failures, and the prices are falling deeper and deeper. The vicious circle seems to be difficult to stop.

The national Council is seeking ideas on how real estate prices might be based. He discussed whether it is allowed to pension funds for real estate financing to use. (At the time, is not possible, what is today, of course.) In March 1993, the national Council voted in favour. The SP was against The Geneva social-Democrat, Jean-Nils de Dardel criticized, it was a gift to the banks, which could now press for easier repayment of the mortgage. Nevertheless, On 1. In January 1995, the new law enters into force: “Federal act on the promotion of home ownership using occupational Pension benefits.”

price boom since 1995

Thus, the price decay is stopped. The extent of it holds the weekly newspaper “Cash” in January 1995: “Up to 50 percent broke at certain locations, especially in the Zurich area, the prices.” This is the low point in the real estate crisis.

Then the Price began to rise, in the we are still. Maybe it is coming to the end. At present, there are institutional investors, including pension funds, their investment needs, the real estate prices in dizziness goings-on sky-high – so it was in the year 1989. Maybe all this Time it will be different, but you should not build.

This article was published in the “handelszeitung”. More exciting articles, see