Go Back   English Forum Switzerland > Help & tips > Housing in general  
Reply
 
Thread Tools Display Modes
  #1  
Old 25.07.2017, 16:08
Forum Veteran
 
Join Date: Sep 2016
Location: Greater Zurich
Posts: 561
Groaned at 12 Times in 9 Posts
Thanked 131 Times in 90 Posts
higgsboson is considered knowledgeablehiggsboson is considered knowledgeablehiggsboson is considered knowledgeable
Estimating the price of a property from its monthly rent

Hi,
Is there a way to estimate the price of a property based on its monthly rent? Is this even possible?
Reply With Quote
  #2  
Old 25.07.2017, 16:13
PaddyG's Avatar
Forum Legend
 
Join Date: Aug 2007
Location: Pensier, Fribourg
Posts: 9,243
Groaned at 118 Times in 102 Posts
Thanked 16,857 Times in 5,912 Posts
PaddyG has a reputation beyond reputePaddyG has a reputation beyond reputePaddyG has a reputation beyond reputePaddyG has a reputation beyond reputePaddyG has a reputation beyond reputePaddyG has a reputation beyond repute
Re: Estimating the price of a property from its monthly rent

Quote:
View Post
Hi,
Is there a way to estimate the price of a property based on its monthly rent? Is this even possible?
Not really, no. Ballpark figure perhaps, but nothing you could actually use. One major issue is fixed rents for long-term tenants. For example we lived in a rented apartment for 11 years in a popular commune that had seen huge expansion and concurrent significant property price increases. Our rent didn't change in those 11 years, so would not have been a fair reflection on the property value.
Reply With Quote
The following 3 users would like to thank PaddyG for this useful post:
  #3  
Old 25.07.2017, 16:16
Forum Veteran
 
Join Date: Sep 2016
Location: Greater Zurich
Posts: 561
Groaned at 12 Times in 9 Posts
Thanked 131 Times in 90 Posts
higgsboson is considered knowledgeablehiggsboson is considered knowledgeablehiggsboson is considered knowledgeable
Re: Estimating the price of a property from its monthly rent

Quote:
View Post
Not really, no. Ballpark figure perhaps, but nothing you could actually use. One major issue is fixed rents for long-term tenants. For example we lived in a rented apartment for 11 years in a popular commune that had seen huge expansion and concurrent significant property price increases. Our rent didn't change in those 11 years, so would not have been a fair reflection on the property value.
So based on rental fee and age of the rental contract? Also need to take commune into account?
Reply With Quote
  #4  
Old 25.07.2017, 16:17
Forum Veteran
 
Join Date: Feb 2012
Location: CH
Posts: 2,304
Groaned at 87 Times in 73 Posts
Thanked 2,002 Times in 1,123 Posts
ivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond repute
Re: Estimating the price of a property from its monthly rent

You set a yield / ROI target that you want to achieve and work out backwards how much the investment should be, given what you know: the return = rent - costs.

What would be a realistic yield you ask? Look at comparable properties, multi family house ads often disclose it
Reply With Quote
  #5  
Old 25.07.2017, 16:18
PaddyG's Avatar
Forum Legend
 
Join Date: Aug 2007
Location: Pensier, Fribourg
Posts: 9,243
Groaned at 118 Times in 102 Posts
Thanked 16,857 Times in 5,912 Posts
PaddyG has a reputation beyond reputePaddyG has a reputation beyond reputePaddyG has a reputation beyond reputePaddyG has a reputation beyond reputePaddyG has a reputation beyond reputePaddyG has a reputation beyond repute
Re: Estimating the price of a property from its monthly rent

Quote:
View Post
So based on rental fee and age of the rental contract? Also need to take commune into account?
Best bet is to look for similar properties on Homegate, or find a reliable estate agent.
Reply With Quote
  #6  
Old 25.07.2017, 16:25
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 14,622
Groaned at 281 Times in 187 Posts
Thanked 18,464 Times in 7,747 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Estimating the price of a property from its monthly rent

Quote:
View Post
Hi,
Is there a way to estimate the price of a property based on its monthly rent? Is this even possible?
a simple rule is to multiply by 200
Reply With Quote
This user would like to thank Phil_MCR for this useful post:
  #7  
Old 25.07.2017, 16:25
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,378
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Estimating the price of a property from its monthly rent

Quote:
View Post
Hi,
Is there a way to estimate the price of a property based on its monthly rent? Is this even possible?
If its more than 20 years gross rent its likely to be a poor deal.
Reply With Quote
The following 3 users would like to thank fatmanfilms for this useful post:
  #8  
Old 25.07.2017, 16:58
eyebeebe's Avatar
Forum Veteran
 
Join Date: May 2009
Location: Pfäffikon SZ
Posts: 2,208
Groaned at 19 Times in 18 Posts
Thanked 2,934 Times in 1,242 Posts
eyebeebe has a reputation beyond reputeeyebeebe has a reputation beyond reputeeyebeebe has a reputation beyond reputeeyebeebe has a reputation beyond reputeeyebeebe has a reputation beyond reputeeyebeebe has a reputation beyond repute
Re: Estimating the price of a property from its monthly rent

My rental contract actually states how much the yield is for the landlord. He claims he is not charging us as much as he legally could.

He's allowed to make 3.9%, but is only making 3.5% (and will decrease in October at his instigation).

The price range suggested by those two returns feels about right for the property and the area.

Mietzinsvorbehalt:​Der Vermieter erzielt mit diesem Mietzins derzeit nicht den gesetzlich zulässigen Ertrag, da die kostendeckende Bruttorendite zurzeit 3,9% betragen sollte und derzeit nur 3,5% Bruttorendite erzielt wird. Daraus resultiert zurzeit eine Mietzinsdifferenz von CHF xxx pro Monat, dieser Betrag ergibt eine nicht ausgeschöpfte Mietzinsreserve bei Vertragsabschluss.
Reply With Quote
  #9  
Old 25.07.2017, 17:07
Forum Veteran
 
Join Date: Feb 2012
Location: CH
Posts: 2,304
Groaned at 87 Times in 73 Posts
Thanked 2,002 Times in 1,123 Posts
ivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond repute
Re: Estimating the price of a property from its monthly rent

Legal definition for kostendeckende Bruttorendite is 2% + reference rate, so it should be 3.5% actually at the moment. It's just a floor on the rent though. I wouldn't buy at this yield, too low. Sucks for your landlord he overpaid for the property and now can't rent it out for a good enough price
Reply With Quote
This user would like to thank ivank for this useful post:
  #10  
Old 25.07.2017, 17:25
Member
 
Join Date: Apr 2013
Location: Zug
Posts: 166
Groaned at 36 Times in 20 Posts
Thanked 190 Times in 88 Posts
jamon8 has an excellent reputationjamon8 has an excellent reputationjamon8 has an excellent reputationjamon8 has an excellent reputation
Re: Estimating the price of a property from its monthly rent

Quote:
View Post
a simple rule is to multiply by 200
I normally use the more precise one: multiply by 1000 and then divide by 5.
Reply With Quote
The following 4 users would like to thank jamon8 for this useful post:
Reply

Tags
buying a flat, buying a house, house agency




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Property Evaluation - Asking price and opinion of the bank ip2012 Housing in general 6 04.04.2015 16:15
Buying a property - lack of information from the seller abbeypainter Housing in general 4 31.01.2014 10:52
Estimating the cost of everything for home insurance John_H Insurance 8 09.06.2013 12:52
Incidence of rent costs on monthly income gio.blq Housing in general 14 12.09.2010 16:21
Deductions from monthly rent due to lacking service etc ave113 Housing in general 3 10.11.2007 17:03


All times are GMT +2. The time now is 11:31.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0