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-   -   Who own the realestate in Switzerland? (https://www.englishforum.ch/housing-general/302931-who-own-realestate-switzerland.html)

christianvonmoos 28.02.2021 19:39

Who own the realestate in Switzerland?
 
Who own the real-estate in Switzerland? Is it super wealth individuals, foreign investors, pension companies, banks, normal people?

Does anyone have a rough overview of who owns the real-estate. Seems very un-affordable for normal people. Was considering buying a house and trying to understand how the swiss housing market works.

olygirl 28.02.2021 19:47

Re: Who own the realestate in Switzerland?
 
I own a house but then again, I’m far from normal.

st2lemans 28.02.2021 19:50

Re: Who own the realestate in Switzerland?
 
Quote:

Originally Posted by olygirl (Post 3280644)
I own a house but then again, I’m far from normal.

We own an apartment AND a rustico.

Only country I've lived in where I could afford to buy something.

Tom

bowlie 28.02.2021 19:55

Re: Who own the realestate in Switzerland?
 
Well the Bank, my wife and I own a small chunk of CH. Regretfully we are not equal partners.

SrkiKi 28.02.2021 19:56

Re: Who own the realestate in Switzerland?
 
Depends how you define normal. We own 2.

Ownership rate will vary across the country. In Zurich city it will be at around 10%, if you go to Zentral Schweiz, will go up to well above 50%...

Tom1234 28.02.2021 19:56

Re: Who own the realestate in Switzerland?
 
Quote:

Originally Posted by bowlie (Post 3280648)
Well the Bank, my wife and I own a small chunk of CH. Regretfully we are not equal partners.

Does your wife know that?

GParker 28.02.2021 19:57

Re: Who own the realestate in Switzerland?
 
Roughly 50% is owned by individuals, 30% pension funds / assets managers and remaining 20% is made up of municipal, kanton and cooperatives.

AbFab 28.02.2021 20:02

Re: Who own the realestate in Switzerland?
 
The largest owner of Swiss real estate is insurer Swiss Life...

doropfiz 28.02.2021 20:04

Re: Who own the realestate in Switzerland?
 
Here are some statistics about the percentage of people living in rented or owned properties.
https://de.statista.com/statistik/da...2057%20Prozent.

Of course, as others have indicated, there's lots of land reserved for other purposes than accommodation.

Axa 01.03.2021 10:32

Re: Who own the realestate in Switzerland?
 
Quote:

Originally Posted by Tom1234 (Post 3280650)
Does your wife know that?

I think the joke was that the bank owns most the house :D

Brian1985 01.03.2021 11:35

Re: Who own the realestate in Switzerland?
 
You can run some numbers on your own to get an idea but here is my take.

Let's take a CHF 1m property, which doesn't really buy anything decent in Zurich. 20% deposit (200k), a 15% amortizing mortgage (150k) and a 65% interest only mortgage (650k). I can get financing for 1% with most banks.

Your annual cashflows are: (i) interest of 8k on the 2 mortgages, (ii) home maintenance costs of 1% of the purchase price so 10k, (iii) 1% amortization of the 1st mortgage so 10k. That's total annual cashflows of 28k. Divide that by 12 months and you get 2.3k per month. Most lenders wont allow you to spend more than 1/3rd of pay on housing costs so you need monthly income of 7k.

Now here is the funny part. Apply a 5% interest rate to the above (as per the stress test that banks do) and that monthly number goes up to 5k which means you need a monthly income of 15k to qualify.

When I look at income distributions, I recon that less than 5% of the population would qualify for a mortgage on their own and roughly 20/25% would qualify as a high-earning couple...say a 2-income household where both partners make 8k each per month and have 1/no kids.

https://www.bfs.admin.ch/bfs/en/home....12488554.html

Talk to you later 01.03.2021 11:53

Re: Who own the realestate in Switzerland?
 
Quote:

Who own the realestate in Switzerland?

The guy in this documentary owns some of it :msncool:


Kittster 01.03.2021 22:17

Re: Who own the realestate in Switzerland?
 
Why, are you looking to infiltrate those circles to reduce the risk of having to pay alimony for a child?

Phil_MCR 01.03.2021 22:57

Re: Who own the realestate in Switzerland?
 
Quote:

Originally Posted by Talk to you later (Post 3280814)
The guy in this documentary owns some of it :msncool:


Thanks for the link. In contrast to the "can i survive on 120k" posts, it is humbling to watch someone having to shop for a family on a tight budget and avoid buying more than she can afford.

Talk to you later 02.03.2021 08:18

Re: Who own the realestate in Switzerland?
 
Quote:

Originally Posted by Phil_MCR (Post 3281103)
Thanks for the link. In contrast to the "can i survive on 120k" posts, it is humbling to watch someone having to shop for a family on a tight budget and avoid buying more than she can afford.


The couple on high wages moaning that they are left with only CHF500 per month really irritated me in comparison. The couple already have a 4th kid on the way and I have a feeling that they are not going to stop there :p


EDIT- I bet they are on EF too!

eyebeebe 02.03.2021 10:20

Re: Who own the realestate in Switzerland?
 
Quote:

Originally Posted by Brian1985 (Post 3280800)
You can run some numbers on your own to get an idea but here is my take.

Let's take a CHF 1m property, which doesn't really buy anything decent in Zurich. 20% deposit (200k), a 15% amortizing mortgage (150k) and a 65% interest only mortgage (650k). I can get financing for 1% with most banks.

Your annual cashflows are: (i) interest of 8k on the 2 mortgages, (ii) home maintenance costs of 1% of the purchase price so 10k, (iii) 1% amortization of the 1st mortgage so 10k. That's total annual cashflows of 28k. Divide that by 12 months and you get 2.3k per month. Most lenders wont allow you to spend more than 1/3rd of pay on housing costs so you need monthly income of 7k.

Now here is the funny part. Apply a 5% interest rate to the above (as per the stress test that banks do) and that monthly number goes up to 5k which means you need a monthly income of 15k to qualify.

When I look at income distributions, I recon that less than 5% of the population would qualify for a mortgage on their own and roughly 20/25% would qualify as a high-earning couple...say a 2-income household where both partners make 8k each per month and have 1/no kids.

https://www.bfs.admin.ch/bfs/en/home....12488554.html

As you say, CHF 1m doesn‘t buy much in large parts of Switzerland and particularly not in parts where earning CHF 180k is a relatively common household income.

When we were buying 3 years ago, we considered moving back to Zurich and I remember looking at Europaallee and thinking who the hell a) can afford CHF 2m+ (So by your calculations CHF 360k pa household income) for an apartment and b) is at a life stage where living in a pokey apartment seems like a good idea. And they get more expensive.

Looking on homegate.ch it seems they‘ve all sold though and now it‘s that kind of money to buy in Zurich-West.

I also can‘t quite get my head round who can afford to buy all the CHF 3m to the sky is the limit priced apartments and houses in my neck of the woods.

The only conclusion I‘ve been able to come to is it‘s people who have ridden the property wave over the last 20 years and are using the bank of mum and dad, but generally the Swiss don‘t seem to move very often.

Phil_MCR 02.03.2021 10:31

Re: Who own the realestate in Switzerland?
 
Quote:

Originally Posted by eyebeebe (Post 3281173)
As you say, CHF 1m doesn‘t buy much in large parts of Switzerland and particularly not in parts where earning CHF 180k is a relatively common household income.

When we were buying 3 years ago, we considered moving back to Zurich and I remember looking at Europaallee and thinking who the hell a) can afford CHF 2m+ (So by your calculations CHF 360k pa household income) for an apartment and b) is at a life stage where living in a pokey apartment seems like a good idea. And they get more expensive.

Looking on homegate.ch it seems they‘ve all sold though and now it‘s that kind of money to buy in Zurich-West.

I also can‘t quite get my head round who can afford to buy all the CHF 3m to the sky is the limit priced apartments and houses in my neck of the woods.

The only conclusion I‘ve been able to come to is it‘s people who have ridden the property wave over the last 20 years and are using the bank of mum and dad, but generally the Swiss don‘t seem to move very often.

this is the price list i got from europaallee as it was under construction in 2012:

https://i.ibb.co/hf7J9Wq/Screenshot-...2-10-29-53.png

2 years later in 2014, I wrote on facebook: "I looked at buying an apartment in Europaalle, but figured it was not worth it due to low rental yield. I obviously hadn't imagined people would try renting these apartments for 14k a month" that was for a 2 bedroom apartment...

eyebeebe 02.03.2021 10:50

Re: Who own the realestate in Switzerland?
 
Quote:

Originally Posted by Phil_MCR (Post 3281181)
this is the price list i got from europaallee as it was under construction in 2012:

https://i.ibb.co/hf7J9Wq/Screenshot-...2-10-29-53.png

2 years later in 2014, I wrote on facebook: "I looked at buying an apartment in Europaalle, but figured it was not worth it due to low rental yield. I obviously hadn't imagined people would try renting these apartments for 14k a month" that was for a 2 bedroom apartment...

Guessing by the date those were some of the first ones near the HB. In 2017 it was the ones closer to Langstrasse that were being offered. I can’t remember exact prices, but pretty sure it was over CHF 2m for a 2.5 room apartment.

Further to my earlier point, I can‘t understand who could and would pay 14k a month for one. That‘s way beyond a typical expat package housing allowance, probably even for a board member.

Phil_MCR 02.03.2021 11:12

Re: Who own the realestate in Switzerland?
 
Quote:

Originally Posted by eyebeebe (Post 3281189)
Guessing by the date those were some of the first ones near the HB. In 2017 it was the ones closer to Langstrasse that were being offered. I can’t remember exact prices, but pretty sure it was over CHF 2m for a 2.5 room apartment.

Further to my earlier point, I can‘t understand who could and would pay 14k a month for one. That‘s way beyond a typical expat package housing allowance, probably even for a board member.

yup the prices were for the early ones built near HB. not really looked at the housing market in zurich, but i guess prices and rents kept on going up...

Dinivan 02.03.2021 14:37

Re: Who own the realestate in Switzerland?
 
Quote:

Originally Posted by eyebeebe (Post 3281189)
Guessing by the date those were some of the first ones near the HB. In 2017 it was the ones closer to Langstrasse that were being offered. I can’t remember exact prices, but pretty sure it was over CHF 2m for a 2.5 room apartment.

Further to my earlier point, I can‘t understand who could and would pay 14k a month for one. That‘s way beyond a typical expat package housing allowance, probably even for a board member.

Airbnbs?


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