makes anyone Who is interested in the purchase of a condo, as a first acquaintance with the imputed rate of interest. Because these banks use to determine who can afford their own four walls financially and, therefore, a mortgage gets. For this purpose, the term sustainability stands for. A mortgage is for the debtor so as to be more portable, the smaller the imputed interest is.
The outlined mechanism explains why, from time to time, a reduction in the imputed interest rate discussion. In this way, the Argument goes, could be reduced the financial barriers to home purchases.
most of The credit institutions to calculate the affordability of a mortgage on the basis of an imputed rate of 4 to 5 percent. On this basis, taking into account the statistics on individual income and expenditure situation – only 20 per cent of all tenant households in Switzerland for a mortgage in question, the Zürcher Kantonalbank (ZKB) in their recent edition of "real estate up to date".
warning before a closing
wore a second barrier comes in the loan-to-value limit. Banks give mortgages up to a maximum of 80 percent of the property price, for the Rest of the buyers need to pay with their own funds. The latter must not only achieve a sufficient income, but also have enough assets to deal with the Bank's business. According to ZKB, only every tenth tenant household meets both conditions, and can dream the dream of a self inhabited home.
at the same time ten year mortgage will be forgiven at interest rates of around 1 percent, without a noticeable increase in the Interest rate is discernible for the foreseeable future. It would be obvious that the banks reduction of the calculatory interest rate, for example, to 3 per cent. So the group of potential house could be - and apartment buyers abruptly expand.
According to the ZKB but this is a fallacy. A to 3 per cent, reduced the implicit interest rate would drag, Ursina Kubli, "in Switzerland, an additional demand of 50'000 to 90'000 units according to how we appreciate". The head of real estate Research at ZKB sets this volume, but in reference to the 22,000 single-family homes and condominiums that were created in the last year. "The boost in demand would correspond to up to four annual productions," said Kubli. to satisfy
the increased demand would have to be driven to the construction of homes dramatically high. However, such a reaction is the ZKB holds in the short term, is hardly possible. Not only because of capacity increases in the housing, only with a time delay. In addition, the order books of many construction companies are in need of additional capacity, therefore, is not available.
"Pure Symptom control"
In light of the situation on the market for homes in an "explosion in Demand would be triggered" by a lower imputed interest rate, lead to sharp price increases. "According to our models is to be expected with up to 20 percent higher prices," says Kubli. In a period of three years and more, the real estate expert, expect the market should find a new equilibrium – in the case of still considerably increased prices, and only a slightly larger number of homeowners.
The screws on the imputed interest rate is because, from their point of view, "pure Symptom control". The Swiss housing market is sick, not a lack of demand, but rather "an acute shortage of Supply," adds Kubli. This imbalance will remain. As long as in any case, as the interest rates on buy low persistence and pension Fund or insurer stands in the absence of investment alternatives continue in a great style investment property.
As for the builders, it is attractive to create and return objects, which can be a blow to sell. "In comparison, the marketing of condos, piece by piece is expensive," says Kubli, "and there always remains the risk that, in the end, not all homes sell."
Created: 29.11.2019, 08:10 PM