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Old 22.11.2020, 12:06
EPMike EPMike is offline
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Raising of maximum allowable ROI on rental property from 0.5 to 2%

According to a recent decision of the Swiss Federal Court, the allowable net ROI on rental property has been increased from 0.5% to 2% above the reference mortgage rate (now 1.25%)

as an example: the maximum allowable net ROI of a 1mil apartment has been raised from 17'500CHF to 32'500CHF per year. Which after the generous allowable deductions and Nebenkosten might mean a rate of maybe 45'000 CHF for a 1Mil apt.

I wonder, will this decision have any effect on the rents, after all - as discussed on this forum already - the rental return is very low in Switzerland as compared to other countries - of course the prices are high.

http://relevancy.bger.ch/php/aza/htt...20-4A_554-2019
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