Just looking to see what the general mood is - bullish or bearish on current housing market. We’ve been in Geneva for 8 years and are close to taking the plunge on a house in Vaud.
Despite the “free” money in terms of current rates I have a nagging doubt about ending up with an illiquid asset in negative equity if rates rise significantly.
The house is ideal, the owners are the usual unrealistic sellers you find in Switzerland but have come down 15% to an asking price that I think is fair value. Mortgage costs would be half the rent we currently pay. We could probably rent it for 2.5x the mortgage costs if we had to go abroad.
On that basis in terms of current cash flow, getting our own place to make a home etc it looks good - but I just have this nagging doubt that what if interest rates etc etc.
Would appreciate any mustachian opinions over a Saturday morning coffee.