Recent troubles in the Swiss Banking Sector have caused damage to its dependable and steady reputation but how does this affect local real estate and what do we need to know?
Thank you to Harriet Kibbe as always for sharing insights with us on the local real estate market.
There is so much uncertainty at the start of this 2nd quarter with the Credit Suisse takeover by UBS, mortgage rates above 3%, and even the bold and unexpected move of the Swiss National Bank to increase the inter-bank lending rate.
Many prospective buyers are at a loss as to whether this is a good time to buy or if they should cave into the fear of uncertainty ahead and make a move before mortgage rates go even higher. Vendors are no longer comfortable that they will get their desired asking price and if they can afford to wait, they may be tempted to do so.
There are a few things to bear in mind that can assuage concerns on both sides of the transaction.
– Prices hiked up during Covid and will have to stabilize – they still remain high in the Nyon area.
– Many homeowners need to sell, and it is possible there will be an above average number of properties coming to market this year.
– Some vendors may still benefit from low mortgage rates, which could be transferred to the buyer.
– There are a lot of incoming expats who are not needing mortgages at all.
– Property prices remain high, although the cusp of the Covid tidal wave is definitely behind us.
– If buyers cannot get financing on your sale price and you have little margin in terms of sale price, look for other concessions that might allow for a win-win transaction.
In any case, for perspective, it is helpful to remind ourselves that there is really nothing new under the sun. Mortgage rates are nowhere near where they were in 2008 and it is still an investment to purchase your own home rather than pay rent every month. There is always an opportunity where one looks for it!
Harriet has lived in the Geneva-Nyon area on and off since 1988, growing up as part of the transient international community. Having moved several times, she has always offered her help to newcomers and people from the international community to assist in their integration and understanding of the region.