Home Ownership: a safer and more profitable investment than the stock market?
According to Raiffeisen’s latest study, the number of vacant homes on the Swiss rental market continues to fall from an already historically low level. The consequence of this worsening shortage: rents are rising dynamically. Thanks to the recent sharp fall in mortgage interest rates, the costs of owning your own home are once again significantly lower than those of renting.
The financial benefits of home ownership
Property owners enjoy a double advantage in the current climate. Home ownership is not only a consumer good, but also a strategic investment. As well as saving on the cost of housing for own use, homeowners also benefit from the long-term appreciation in value of their property. All in all, home ownership generates a return on investment on a par with that of an equity portfolio, with considerably less risk, as the graph below illustrates.
Why are low interest rates a game-changer for buyers?
Thanks to significantly lower financing costs and the prospect of further SNB interest rate cuts, or even a possible return to negative rates, buying a home has become much more attractive once again. Home ownership is much more than just a consumer good: it also offers an attractive risk/return profile as an investment category.
A dream duplex 15 minutes from Geneva: become an owner
Our sales teams are currently marketing a sumptuous new duplex with a private garden, spacious terraces and independent access. Located just 15 minutes from Geneva, this property will be available from the end of November. An opportunity not to be missed to become a homeowner in a booming market.
Source: latest “Swiss Real Estate” study by Raiffeisen Economic Research.
https://www.raiffeisen.ch/content/dam/www/rch/privatkunden/wohnen-und-hypotheken/kampagnen/2024/immobilienstudie/4q24/immobilien_schweiz_fr_form.pdf