 | | 
28.02.2021, 19:39
| Newbie 1st class | | Join Date: Aug 2020 Location: Zürich
Posts: 19
Groaned at 15 Times in 5 Posts
Thanked 4 Times in 3 Posts
| | 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.
| 
28.02.2021, 19:47
|  | Forum Legend | | Join Date: Oct 2007 Location: d' Innerschwiiz
Posts: 7,756
Groaned at 419 Times in 282 Posts
Thanked 18,265 Times in 5,656 Posts
| | Re: Who own the realestate in Switzerland?
I own a house but then again, I’m far from normal.
| The following 8 users would like to thank olygirl for this useful post: | | 
28.02.2021, 19:50
|  | Forum Legend | | Join Date: Dec 2010 Location: Lugano
Posts: 32,504
Groaned at 2,578 Times in 1,840 Posts
Thanked 39,646 Times in 18,685 Posts
| | Re: Who own the realestate in Switzerland? | Quote: | |  | | | 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
| 
28.02.2021, 19:55
| Forum Legend | | Join Date: Oct 2014 Location: Nyon
Posts: 6,563
Groaned at 390 Times in 286 Posts
Thanked 9,159 Times in 4,281 Posts
| | 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.
| The following 14 users would like to thank bowlie for this useful post: | AnnaSophiaA, Axa, bossybaby, DantesDame, Dinivan, fatmanfilms, irish_temptation, meloncollie, newtoswitz, olygirl, ThomasSSS, TinyK, Village Idiot | 
28.02.2021, 19:56
| Junior Member | | Join Date: Oct 2020 Location: Zurich
Posts: 87
Groaned at 1 Time in 1 Post
Thanked 76 Times in 44 Posts
| | 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%...
| This user would like to thank SrkiKi for this useful post: | | 
28.02.2021, 19:56
|  | Forum Legend | | Join Date: Jan 2007 Location: Kanton Luzern
Posts: 17,051
Groaned at 649 Times in 502 Posts
Thanked 25,843 Times in 10,415 Posts
| | Re: Who own the realestate in Switzerland? | Quote: | |  | | | Well the Bank, my wife and I own a small chunk of CH. Regretfully we are not equal partners. | | | | | Does your wife know that?
| This user would like to thank Tom1234 for this useful post: | | 
28.02.2021, 19:57
| Member | | Join Date: Jul 2019 Location: Zurich
Posts: 249
Groaned at 12 Times in 9 Posts
Thanked 599 Times in 184 Posts
| | 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.
| The following 3 users would like to thank GParker for this useful post: | | 
28.02.2021, 20:02
|  | Forum Legend | | Join Date: Sep 2006 Location: Zürich
Posts: 8,655
Groaned at 383 Times in 263 Posts
Thanked 13,021 Times in 4,452 Posts
| | Re: Who own the realestate in Switzerland?
The largest owner of Swiss real estate is insurer Swiss Life...
| 
01.03.2021, 10:32
|  | Forum Legend | | Join Date: Oct 2019 Location: Suhr, Aargau
Posts: 4,255
Groaned at 72 Times in 67 Posts
Thanked 5,937 Times in 2,796 Posts
| | Re: Who own the realestate in Switzerland? | Quote: | |  | | | Does your wife know that? | | | | | I think the joke was that the bank owns most the house | The following 2 users would like to thank Axa for this useful post: | | 
01.03.2021, 11:35
| Member | | Join Date: Jun 2015 Location: London
Posts: 193
Groaned at 101 Times in 33 Posts
Thanked 420 Times in 125 Posts
| | 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 | This user would like to thank Brian1985 for this useful post: | | 
01.03.2021, 11:53
|  | Forum Veteran | | Join Date: Aug 2020 Location: ZH
Posts: 1,563
Groaned at 71 Times in 37 Posts
Thanked 2,923 Times in 1,058 Posts
| | Re: Who own the realestate in Switzerland? | Quote: |  | | | Who own the realestate in Switzerland?
| | | | | The guy in this documentary owns some of it | 
01.03.2021, 22:17
| Forum Legend | | Join Date: Dec 2006 Location: Zurich
Posts: 4,940
Groaned at 184 Times in 120 Posts
Thanked 8,599 Times in 2,882 Posts
| | 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?
| This user would like to thank Kittster for this useful post: | | 
01.03.2021, 22:57
|  | Forum Legend | | Join Date: Oct 2009 Location: Basel
Posts: 14,952
Groaned at 295 Times in 199 Posts
Thanked 19,019 Times in 8,000 Posts
| | Re: Who own the realestate in Switzerland? | Quote: | |  | | | The guy in this documentary owns some of it  | | | | | 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.
| 
02.03.2021, 08:18
|  | Forum Veteran | | Join Date: Aug 2020 Location: ZH
Posts: 1,563
Groaned at 71 Times in 37 Posts
Thanked 2,923 Times in 1,058 Posts
| | Re: Who own the realestate in Switzerland? | Quote: | |  | | | 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
EDIT- I bet they are on EF too!
| This user would like to thank Talk to you later for this useful post: | | 
02.03.2021, 10:20
|  | Forum Veteran | | Join Date: May 2009 Location: Pfäffikon SZ
Posts: 2,405
Groaned at 24 Times in 23 Posts
Thanked 3,235 Times in 1,376 Posts
| | Re: Who own the realestate in Switzerland? | Quote: | |  | | | 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.
| This user would like to thank eyebeebe for this useful post: | | 
02.03.2021, 10:31
|  | Forum Legend | | Join Date: Oct 2009 Location: Basel
Posts: 14,952
Groaned at 295 Times in 199 Posts
Thanked 19,019 Times in 8,000 Posts
| | Re: Who own the realestate in Switzerland? | Quote: | |  | | | 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...
| This user would like to thank Phil_MCR for this useful post: | | 
02.03.2021, 10:50
|  | Forum Veteran | | Join Date: May 2009 Location: Pfäffikon SZ
Posts: 2,405
Groaned at 24 Times in 23 Posts
Thanked 3,235 Times in 1,376 Posts
| | Re: Who own the realestate in Switzerland? | Quote: | |  | | | 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.
| 
02.03.2021, 11:12
|  | Forum Legend | | Join Date: Oct 2009 Location: Basel
Posts: 14,952
Groaned at 295 Times in 199 Posts
Thanked 19,019 Times in 8,000 Posts
| | Re: Who own the realestate in Switzerland? | Quote: | |  | | | 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...
| This user would like to thank Phil_MCR for this useful post: | | 
02.03.2021, 14:37
|  | Member | | Join Date: Mar 2007 Location: Geneva
Posts: 207
Groaned at 35 Times in 24 Posts
Thanked 254 Times in 132 Posts
| | Re: Who own the realestate in Switzerland? | Quote: | |  | | | 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?
| 
03.03.2021, 15:45
| Junior Member | | Join Date: Mar 2020 Location: Zuirch
Posts: 52
Groaned at 1 Time in 1 Post
Thanked 21 Times in 8 Posts
| | Re: Who own the realestate in Switzerland? | Quote: | |  | | | 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 | | | | | Are these income numbers before or after taxes?
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | | Thread Tools | | Display Modes | Linear Mode |
Posting Rules
| You may not post new threads You may not post replies You may not post attachments You may not edit your posts HTML code is Off | | | All times are GMT +2. The time now is 07:57. | |