Wüest & Partner Study : Buying is Still more Advantageous than Renting
In a recent study published by Wüest & Partner for the Journal de l’Immobilier, the research company took the hypothesis of a typical 120 m2 condominium apartment of average location and standard (and therefore inferior in quality to a new development) and demonstrated that owner-occupied housing offers a positive net return compared to its rental equivalent if we focus on the cantons of Geneva and Vaud.
In fact, if price rises for owner-occupied properties are only 1% a year, buying is more advantageous than renting. However, between 1985 and 2022 (a period that includes both the real estate crisis of the 1990s and phases of strong growth), the average annual increase in prices for owner-occupied apartments was 2.8% in the canton of Vaud and 3.7% in the canton of Geneva.
Investing in owner-occupied housing therefore makes sense today, despite rising interest rates, given the positive future indirect returns. This conclusion is all the more valid as rising mortgage rates and the rental shortage in Geneva and Vaud are driving rents inexorably upwards.
What’s more, buying a new-build property with an energy label such as Minergie or THPE will result in very significant savings in energy costs over the entire ownership period.
Rather than keeping unpaid cash in the bank or exposing yourself to the volatility of the financial markets, we invite you to discover three new projects from the Capvest Group, all with planning permission in force, located on the left bank of the Canton of Geneva or in the Canton of Vaud.
“Les Vignes d’Ehden” in Anières (GE) – THPE project
“La Fontaine d’Ehden” in Corseaux (VD) – Minergie project
“Les Rives d’Ehden” in La Tour-de-Peilz (VD) – Minergie project