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Old 03.09.2012, 23:26
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Wollishofener Wollishofener is offline
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Re: Real Estate prices sinking

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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).
DEflation ? Maybe, but the point is that with lower real-estate prices, companies no longer have to pay as much as now and will either make higher profits or lower the prices of their products or a bit of both. That for industry and inbound tourism is good either way and will either create new jobs or at least save existing jobs.

The absurdly high real-estate prices threatened and destroyed jobs.
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