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Old 03.09.2012, 16:54
BrianJW BrianJW is offline
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Re: Real Estate prices sinking

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The rise of real-estate-prices in the past lead to problems for most companies and to job losses.

No, the sinking of real-estate prices is favourable to the overall economy as most companies work in rented real estate . Your idea is based on 1912 realities when companies did own their buildings. But those are long gone times.

And lower renting prices give more money to the companies AND less overvalued rents for real estate may bring in more foreign investors / foreign companies.

And the whole thing may bring down the CHF to a decent level, which means one Euro being CHF 1.47 again which would be a decent rate that again would improve business of both industry and retail
Read what I wrote. Price reductions OUTSIDE of real estate could cause problems for the economy which is what you alluded to as a good thing for the economy.

Basically you're talking about deflation, which would mean the price companies receive for their goods or services are reduced, this would put jobs in jeopardy. I dont see it personally. There may be a softening of the real estate market, it can't go up and up forever but I fail to see how this will be transferred to the general market.

And how will lower rental prices bring more investment into Switzerland but weaken the Franc? Surely more people looking to invest in Switzerland will strengthen the Franc.

Softening real estate prices would be good for people renting and those looking to buy and businesses (except those acting as landlords).
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