Switzerland Changes

[chrispy]

I subscribe to a newsletter from a Swiss Realestate company. I received their latest newsletter which I found very interesting.

I quote:

Lauenen Gstaad Immobilien GmbH – Sales 2012 Newsletter
Important Update


Dear Reader
As you may have heard in the Swiss news, the new law on second homes has been delayed until January 2013. As a result, Swiss newspapers have predicted a flurry of activity in the Swiss real estate market before the new law takes effect on January 1, 2013.
The new law introduces quotas for holiday homes, with a 20% cap on the number of second homes permitted in every region in Switzerland including alpine resorts. The decision, approved by Swiss voters, has been controversial. We anticipate a great deal of activity in the real estate market in the next four months before the law takes effect.
Please contact us as soon as possible to find out how this law will affect you if you are planning on purchasing a property in our region. Our advice is that if you are thinking about buying, now is the time. In addition to the second home law, there is currently a debate at the Swiss National Bank as to whether the Swiss franc will remain pegged against the Euro. If not, it will make the Swiss franc even more expensive against the Euro and other currencies... house prices are also due to rise as a result of the freeze on building of new holiday homes after January 1, 2013 ... we suggest that you act now!

So will this will bring down the value of property or greatly increase the value of the 20% ? I don't know any more about it...it depends on how it is managed within each of the Regions.

Chris

 

[lizzie]

So - if I read correctly - no more than 20% of homes in any given area can be "investment properties" or holiday homes?

Considering in Australia we have had a consistant 30% rental rate (not including holiday homes) over the last 50+ years I couldn't see such restrictions working here. All it would mean is homeless people or renters crammed in to a family/room.

What is the rental rate in Switzerland?

 

[chrispy]

Lizzie

When I worked in Geneva 3 years ago I was paying the equivalent of A$2500 per month for a 2 bedroom apartment. It was quite luxurious but the second bedroom was really more of a study. The lounge however had a grand piano and was enormous.

The Swiss franc was equivalent to the A$ at the time. We were paid in US$ which was good when I arrived but dived by the time I left.

The way I read it, if you buy an investment property before the law changes you can keep it. So I would expect there to be a rush on holiday houses before January.

Chris