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Old 20.04.2020, 23:35
hurbertschneider hurbertschneider is offline
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Location: Zurich
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Sell or not to sell

I've been quite panici last month as I just bought a house with 2 units in February and than the unfortunate corona situation started. As I was advertising one of the unit for rent(don't need both units to live in) the neighbour approached me that he seen the unit advertised for rent and if I would sell it to him? We had some discussion and he came up with 70k extra over the purchase price which after tax, "early sale speculation" punishment cost and Handanderungsteuer yields around +45k CHF still.

So far it's good story, but now I'm in an indecisive brain freeze if I should sell or not as in general houses slowly increase in price(it's getting to be a cliché I realised) but who knows what this recession brings:
  • seems like interest rates are going down again after a slight jump in March
  • house ads are frozen(one new add in week in certain areas whereas in 2019 been observing much more) so that's not much of an indicator
  • last price drop in Switzerland has been at 1991-1993 mainly caused by government action to limit speculation by raising rates, extra regulations for investors and construction companies see reference so it wasn't caused by a recession
  • short-time work keeps everyone floating no defaults on mortgage or rent is expected heard from my bank contact
  • construction activity is also halted by the virus
Could be that the government steps in and ease the economy till it gets started again as it happened in the 80s in Switzerland, but who knows can't get a crystal ball because every store is locked down. On one side I'm grateful to have the opportunity to have this house on the other side I still have quote some dept on it so I wouldn't really wan't to pay for a potential price drop.

The house is build in the 90s following good standards and isolation, in it's current condition don't need much renovation in the next 10 years except regular maintenance and a window frame replacement(water damage on the weather side window).

Do you have any data/advice maybe I could look at?
Subjective personal opinions are also welcome.
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