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Old 22.04.2020, 12:49
hurbertschneider hurbertschneider is offline
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Re: Sell or not to sell

Thank you for sharing your view fatmanfilms!
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Remember Demand is the ABILITY TO PAY, in CH the amount you can spend on rent is governed by your earnings. Ability to pay is currently a huge risk for landlords going forward.
-this is not necessarily the problem in CH, currently government show a lot of support for employees(no reference)
-all people who came to visit for renting out the unit had quite stable essential jobs

On the other hand Zurich's economic activity is also in the downturn for some years, large companies downscaled or left the country overall and not many companies setting up workforce here anymore thus employment of huge companies are decreasing year by year. (don't have reference to support that, just an observation, please correct me if I'm mistaken)
Migration is also tightened year by year.

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Net return of property is appallingly low after repairs & refurbishment, probably negative cash flow over time as rents don't go up if the Tennant stays. The tenant could be paying the same as 25 years ago or even less as interest rates were over 3.5% back then.
True, net return in case I would rent out both units would be around 2%/annum. Assuming price of the property won't change in 10 years and spend around 5% of the value for renovation in 10Y.
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