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Old 08.05.2011, 19:02
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Rent v's tax rate in Switzerland.

I am currently researching into the claim in Switzerland that the higher a Kantons tax rate the lower it is to rent property there. As far as I can see this is not the case. T I spent time looking for property on homegate.ch but could make out no discernible difference.
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Old 08.05.2011, 19:32
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Re: Rent v's tax rate in Switzerland.

Very broadly speaking, it has been true that properties in the low tax areas are more expensive than those in the high tax areas - but there are always exceptions.

Low tax areas draw folks who have the disposable income to afford higher prices - and so landlords are naturally happy to cater to that end of the market.

The ZH gold coast is a good example. You pay a premium for the lower tax rates, for the lake view, for the excellent transportation, and you pay a premium for the 'prestige' of the address.

Pfäffikon is something of an oddity. While the taxes are very low, compared to the other towns of Steuerparadis SZ Pfäffikon is a less desireable area - and so rents are actually pretty reasonable. (If rumor is to be believed, a goodly portion of Pfäffikon's tax base is derived from mail boxes...)

And then there are towns like Schindellegi and Feusisberg. People are willing to pay silly money to buy a home out here - and the low taxes allow them to afford said silly money. But not too many folks are willing to put up with the longer commute when renting. So homes for sale are outrageously expensive, but rental units are surprisingly affordable. For now.

Another thing you are seeing is the effect of the housing crisis. With so many people chasing after so little available housing all prices have risen - it's simple supply and demand. The differences were more noticeable 5 years ago. Give that there is so little housing available, many people don't have the luxury of selecting based on tax rates - you go wherever you can find something, anything.
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Old 08.05.2011, 19:57
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Re: Rent v's tax rate in Switzerland.

You have to normalise all the other factors before you can establish (or otherwise) a correlation between two of them.
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Old 08.05.2011, 20:08
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Re: Rent v's tax rate in Switzerland.

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I am currently researching into the claim in Switzerland that the higher a Kantons tax rate the lower it is to rent property there. As far as I can see this is not the case. T I spent time looking for property on homegate.ch but could make out no discernible difference.
Have you taken the communal tax rates into consideration as well?

Martin
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Old 09.05.2011, 14:41
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Re: Rent v's tax rate in Switzerland.

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Another thing you are seeing is the effect of the housing crisis. With so many people chasing after so little available housing all prices have risen - it's simple supply and demand. The differences were more noticeable 5 years ago. Give that there is so little housing available, many people don't have the luxury of selecting based on tax rates - you go wherever you can find something, anything.
Some of the things that we have seen that were sold recently confirm what you have said. As one real estate agent told us, there is a buyer for everything.

Land is becoming scarce, and old houses with big lots are really hard to find.
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Old 09.05.2011, 14:49
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Re: Rent v's tax rate in Switzerland.

They are indeed difficult to find in some areas - but not in others. If you want a big old house with character and land, at a very reasonable price, you have to move away from the golden triangle, Zurich, Montreux/Geneva riviera. They are available here in the Jura for instance, and even in the Gros de Vaud (but be quick, going fast!). If you want a bargain that will be a good investment within 10/15 years, you need to study and anticipate where the pressure will move to in next few years.
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Old 09.05.2011, 15:04
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Re: Rent v's tax rate in Switzerland.

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They are indeed difficult to find in some areas - but not in others. If you want a big old house with character and land, at a very reasonable price, you have to move away from the golden triangle, Zurich, Montreux/Geneva riviera. They are available here in the Jura for instance, and even in the Gros de Vaud (but be quick, going fast!). If you want a bargain that will be a good investment within 10/15 years, you need to study and anticipate where the pressure will move to in next few years.
In Kanton Aargau too, we're got our eye on one, 51 minutes to Zürich main station by train, 1300m2 land, with a house that is 900m3. It is not a low tax area but you have to look at the big picture. For us one of the main considerations is distance to our neighbours. We have pets and it is getting increasingly difficult to find pet friendly housing.
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