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Old 05.03.2012, 20:10
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Swiss property prices are multiplying, as are fears of a bubble

"Switzerland's property market is red hot. And despite warnings that a bubble is building, the sector is expected to continue its recent vintage performance through 2012 amid unabated retail and investor demand...."

Read more at:

http://online.wsj.com/article/SB1000...googlenews_wsj
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Old 05.03.2012, 20:45
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Re: Swiss property prices are multiplying, as are fears of a bubble

yup it's really a typical bubble formation as a result of low interest rates.

on the one hand, it is amazing to see the same bubbles build up in europe and other countries (e.g. Australia) after the US bubble bursting and also the UK bubble bursting - but on the other hand, you can easily see it being a rational response to loose monetary policy.

http://economiccollapse.co.uk/minilog/32
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Old 05.03.2012, 21:32
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Re: Swiss property prices are multiplying, as are fears of a bubble

Well I really don't know if I believe that... I've been keeping a close eye on the houses for sale online for over 2 years and they have been falling faster than ... (enter something humorous here)
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Old 05.03.2012, 21:33
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Re: Swiss property prices are multiplying, as are fears of a bubble

A long while back, I almost invested in 555 S. Grand, until I realised they had a problem with the elevators; so I looked west and put money into Century Plaza - but that wasn't without it's problems.
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Old 05.03.2012, 21:54
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Re: Swiss property prices are multiplying, as are fears of a bubble

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yup it's really a typical bubble formation as a result of low interest rates.

on the one hand, it is amazing to see the same bubbles build up in europe and other countries (e.g. Australia) after the US bubble bursting and also the UK bubble bursting - but on the other hand, you can easily see it being a rational response to loose monetary policy.

http://economiccollapse.co.uk/minilog/32
Monetary policy? Really? I mean, the Finland bubble alone should leave people slapping each other as Finland, only very recently, started offering the kinds of loans like 30-year at low interest. That and, given the average take-home pay, after taxes, is roughly 1500-2000 euro per month, wtf are the folks buying all the overpriced home in the burbs at 500k euro? What I don't understand is WHO ARE THESE PEOPLE as anyone with enough liquidity have the smarts to recognize the bubble and those who don't shouldn't be able to afford them...so who are these idiots with more money than maths smarts? Don't blame the banks as they loan money to those who are likely to pay it back, at a high rate of profit. Of course, you'd think they'd learn. Years ago when the Boston bubble was at it's most outrageous, I was having beer with some of my nerdier friends, one of whom had wisely bought in the back bay before the bubble. I said that the bubble had to burst and that prop values had to come down to real world levels and that few could afford prop taxes on these insane values. Many of them claimed I was dreaming.

It's economics and there's only so many idiots around with cash willing to ignore the future. There's going to be a lot of folks going to sell their house in a few years...and wondering why there's nobody willing to pay the same price they did. I guess you can't have your retirement, not have kids AND 40%+ youth unemployment with those kinds of expectations.....interesting times.
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Old 07.03.2012, 19:57
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Re: Swiss property prices are multiplying, as are fears of a bubble

This time is different. Besides we are talking swiss quality.
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Old 07.03.2012, 20:53
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Re: Swiss property prices are multiplying, as are fears of a bubble

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yup it's really a typical bubble formation as a result of low interest rates.

on the one hand, it is amazing to see the same bubbles build up in europe and other countries (e.g. Australia) after the US bubble bursting and also the UK bubble bursting - but on the other hand, you can easily see it being a rational response to loose monetary policy.

http://economiccollapse.co.uk/minilog/32
I don't think the UK bubble has burst -- certainly not as dramatically as Ireland and the US. I know some UK areas and property types have seen sizeable falls but most are seeing a very slow puncture more than anything, and London and much of the SE are still seeing rises.

I'm no expert but I would expect Swiss property prices to avoid any sort of price crash because in the main they are not shooting up at a silly rate, and the country is likely to remain a relatively desirable place to live by those who can afford to sustain the market for outright sales. There may eventually be a price stagnation as in much of the UK, or even a gentle decline, but it's hard to see a crash anytime in the short or medium term.


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Monetary policy? Really? I mean, the Finland bubble alone should leave people slapping each other as Finland, only very recently, started offering the kinds of loans like 30-year at low interest....................


I broadly agree with you, but I really DO think that Switzerland is a bit different. There is a lot of money here, and apparently a lot of rich people who want to live here. If and when the great economic collapse does come, I can see Switzerland becoming an even safer haven rather than being dragged down with it.

But hey -- what do I know?
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Old 07.03.2012, 21:22
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Re: Swiss property prices are multiplying, as are fears of a bubble

Some brand spanking new apartments have been sitting empty for some time now in Rüschlikon.
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Old 07.03.2012, 21:46
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Re: Swiss property prices are multiplying, as are fears of a bubble

Indeed, my wife will be getting an inheritance sometime in the next years (messy situation), but buying a house is NOT in the plans (maybe some old family properties, and NOT fixing them up, but otherwise...).

Look, all my friends in the US have houses, and they spend their meager vacation time fixing them up every year (as did my parents), and I want NO part of this nonsense!

Tom

P.S. Of course, I spend all my time fixing up my motorcyles, but they are FAR more fun than a house!
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Old 07.03.2012, 21:54
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Re: Swiss property prices are multiplying, as are fears of a bubble

Its a tough call, on one hand you have lose monetary policy, you know that your cash is going to lose purchasing power when people realize its better to convert their cash into hard assets.

The issue here is that we are in uncharted waters, there has NEVER been so many and so varied multiple government interventions. At no point in time has so much cash been made available to all types of financial institutions, governments and certain type of borrowers. So nobody can really know what is going to happen next.

I don't blame trying to put some money in real estate. Having cash is also an investment in CASH. You are trusting the government that prints the money you have to hold its value, something that looks more and more like an act of faith.
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Old 07.03.2012, 22:02
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Re: Swiss property prices are multiplying, as are fears of a bubble

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Indeed, my wife will be getting an inheritance sometime in the next years (messy situation), but buying a house is NOT in the plans (maybe some old family properties, and NOT fixing them up, but otherwise...).

Look, all my friends in the US have houses, and they spend their meager vacation time fixing them up every year (as did my parents), and I want NO part of this nonsense!

Tom

P.S. Of course, I spend all my time fixing up my motorcyles, but they are FAR more fun than a house!
some of us freaks actually enjoy DIY!
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Old 07.03.2012, 22:05
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Re: Swiss property prices are multiplying, as are fears of a bubble

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some of us freaks actually enjoy DIY!
Indeed, but I'd rather spend my DIY time on my bikes!

Tom
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Old 07.03.2012, 22:06
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Re: Swiss property prices are multiplying, as are fears of a bubble

Depends on the house Tom - some houses are defo mor fun and worthwhile than others. And as always, location, location, location... and timing.

I advised many to look at Yverdon 1 year ago - and now it is almost too late, as prices have gone up hugely and availability is down to zilch.
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Old 07.03.2012, 22:13
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Re: Swiss property prices are multiplying, as are fears of a bubble

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Depends on the house Tom - some houses are defo mor fun and worthwhile than others. And as always, location, location, location... and timing.

I advised many to look at Yverdon 1 year ago - and now it is almost too late, as prices have gone up hugely and availability is down to zilch.
Well, as the parental home is at 1.5M, needs a couple 100k work (due to neglect over several decades), and would have to buy out the sister (with all assets in property or art) and pay debts and the mortgage (only 350k), it's a no-go to keep it.

Now, a nice rustica is perhaps in the future, in fact I currently spend my spare time fixing up my friends'!

Tom
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Old 07.03.2012, 22:34
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Re: Swiss property prices are multiplying, as are fears of a bubble

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yup it's really a typical bubble formation as a result of low interest rates.

on the one hand, it is amazing to see the same bubbles build up in europe and other countries (e.g. Australia) after the US bubble bursting and also the UK bubble bursting - but on the other hand, you can easily see it being a rational response to loose monetary policy.

http://economiccollapse.co.uk/minilog/32
I'm not sure you can draw parallels between the UK and US can you?

The US property market failure was heavily influenced by sub-prime mortgages leading to a complete collapse - in places - of the property market.

In the UK, however, while property prices may have slumped the overall trend remains a continued increase in house prices - unlike the US, the overall burden of negative equity isn't that great - or am I mistaken?

Assuming I am not, then it still makes sense to invest in property - especially if you are not leveraging it for secondary investments a la subprime.
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Old 08.03.2012, 09:25
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Re: Swiss property prices are multiplying, as are fears of a bubble

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Don't blame the banks as they loan money to those who are likely to pay it back, at a high rate of profit. .
Hahaha! Now THAT was funny.
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Old 08.03.2012, 09:50
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Re: Swiss property prices are multiplying, as are fears of a bubble

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This time is different. Besides we are talking swiss quality.
FLW.

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Old 22.04.2015, 09:47
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Re: Swiss property prices are multiplying, as are fears of a bubble

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I'm not sure you can draw parallels between the UK and US can you?

The US property market failure was heavily influenced by sub-prime mortgages leading to a complete collapse - in places - of the property market.

In the UK, however, while property prices may have slumped the overall trend remains a continued increase in house prices - unlike the US, the overall burden of negative equity isn't that great - or am I mistaken?

Assuming I am not, then it still makes sense to invest in property - especially if you are not leveraging it for secondary investments a la subprime.
Tesco's today wrote off £4.7billion due to the fall of property prices, no doubt this will trickle through to ordinary houses in ordinary towns.
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Old 22.04.2015, 11:01
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Re: Swiss property prices are multiplying, as are fears of a bubble

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FLW.

(Famous Last Words)
Yep - Swiss quality is an amazing illusion ... basically an out-lived marketing scam. When I've seen some brand new built houses or apartments my friends moved into in Zurich in the last year, it is appalling what passes inspection here.
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Old 22.04.2015, 11:57
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Re: Swiss property prices are multiplying, as are fears of a bubble

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Tesco's today wrote off £4.7billion due to the fall of property prices, no doubt this will trickle through to ordinary houses in ordinary towns.
I rather suggest profits were lost due to shoppers changing the way they shop.
i.e going to Aldi's or Lidl's.
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