Real estate acquisition: investing in real estate in Switzerland

In a recent article published in the trade journal Tout l’immobilierJacques Emery (Director of Sales and Investments Naef Knight Frank), with whom our group regularly collaborates for the sale of our projects, rightly points out that faced with rising rents and the scarcity of quality rental properties, many people are seizing the opportunity to take out a loan at historically low rates in order to invest in the purchase of their home. The current real estate market situation offers attractive real estate investment opportunities in Switzerland for individual investors.

Mortgage and 10-year financing: exceptionally low interest rates

According to the SNB, 10-year mortgages now account for more than half of the mortgage volume and the average rate for 10-year mortgages is now well below 1%. We note that buyers in the 50+ age group often opt for a 50% equity contribution to avoid the obligation of amortizing the principal.

Currently and for the best files, banks and insurance companies grant mortgages below 0.80% on 10 years at the end of August. Thus, a loan of 1’500’000 CHF at 0.80% costs only 12’000 CHF/year in interest (excluding amortization), or 1’000 CHF/month! Do the calculation compared to a rent in Geneva and you will understand the craze for the acquisition in PPE for a few years.

Real estate development in French-speaking Switzerland

Swiss real estate investment is becoming increasingly popular for its stability and potential returns. Many consider this investment to be a sensible way of enhancing their wealth. Before taking the plunge, however, it’s essential to do some careful reading and research to understand rental market prices in the region.

In addition, sustained demographic growth in the Lake Geneva region is mechanically driving demand for property ownership. In these times of low interest rates, investing in rental property can offer you a secure and particularly attractive return, over the long term, compared with other types of financial investment.

So don’t waste any time investing in stone to build up your real estate assets, and take a look at the website for our superb project in Troinex: Le Parc des Crêts. Marketing of over 300 lots is well underway, and work is on schedule for delivery of the first phase in May 2023.