Apartment rent decrease to due interest rate cut from the Swiss National Bank

Real Estate
1

Hello,
The Swiss national bank has just decreased the interest rate of 0.25%. Do you guys think that the rent prices are going to lower to? When do you expect we may ask the reduction?

Are you guys going to do it?
Last time it happened I personally requested it to my landlord and ended up in having a discount due to decrease of of interest rate, yet an increase of base value of the apartment. At the end of the day basically nothing changed, but then, when the interest rates increased again, I got a double increase, meaning that I basically got the increased interest rate applied on a increased base value. I did not do the whole mathematics, yet I have the feeling I finally lost some money in the whole process.

Any one had similar experience?

All suggestions are very welcome…

2

You need the average mortgage to go down, it’s not clear if/when it might happen (but won’t happen soon). (I’m not even sure all the increases made it to the mortgages to begin with, it’s possible there’s still a lot of very low mortgages out there and average rate will still keep increasing as they get renewed)

1 Like
3

Indeed that’s the main thing as the averaging window spans over 10 years, anything renewed now gets a higher rate which in turn leads to an increase of the average rate…