Useful information regarding Real Estate investing in Switzerland
HOW TO INVEST IN REAL ESTATE IN SWITZERLAND ?
The conditions for investing in real estate vary greatly depending on the types of investments.
- Do it yourself
- There you have to be ready to do everything from the choice of the property through the banking relationship for the loan and up to the management of tenants …
- Which implies larger amounts and more concentrated risks
- But if all goes well, especially thanks to the leverage effect of the loan, significant gains can be generated
- Do it through a fund
- There is a fairly large choice of the type of fund and the strategy that they will apply, they are generally well diversified and managed by professionals.
- There is often good liquidity, which means that you can sell quite easily (but beware of the agios or disagio, negative which represent the difference between the stock market price and the net asset value of a fund)
- On the other hand, we cannot choose the goods in which we invest and the costs of this type of structure are quite high and the authorized levers are lower which implies less interesting returns.
- Do it in partnership (or club deal)
- Invest with real estate professionals in order to participate, by selecting projects
- The operational part is left to the professionals who take care of carrying out the project (s) and the investor participates in the financial part of the case while of course having a follow-up of the progress of the work. and / or situation on an ad hoc basis
- The returns are often good while limiting the risks by the choice, the diversity and the partners of the projects and / or goods selected
Location is of course a very important factor in choosing any property. The proximity of large urban areas and the means of communication are in particular data to be taken into account. However, COVID with its share of telecommuting and other behavioral changes has changed the situation somewhat recently.
Residential is obviously the first choice of the majority of investors. As for buyers, they tend to turn to larger properties with, if possible, a little greenery and / or a balcony. And location remains important, but distances to workplaces tend to lose importance in exchange for comfort.