Sanity check and advise needed

Real Estate
21

Very good points thanks. The new cost Z* would be equal or slightly higher than Z.

Thanks for the input I appreciate and it makes me think more.

22

To give you more food for thought based on real-life example. Our case - we were paying 3950 CHF of rent for twin villa with small garden. We’ve bought an individual house, in the same village, with a nice view and much bigger garden. We have renovated it heavily. Currently we pay ~2850 CHF for the mortgage and this is after we had to renew several tranches (we took over previous owners mortgage) at 2.1%, instead of 1.11% we got for the tranche which was needed on top of existing ones when buying (fixed for 10y). So, still nice, monthly savings of over 1k CHF. But we have just finished exchanging the windows which were not done during big renovation - 17k CHF. We need to fix leaking veranda on our own (very long story), another
15k? I hope that at some point we will stop spending that much money
but then something else will need to be fixed, replaced etc. And suddenly these monthly savings are not looking that good :sweat_smile:.

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23

Higher cost Z* would mean you will spend more money while the goal was to spend less money :slight_smile:

Not good

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24

This video can answer a lot of your questions
Published recently

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25

Thanks a lot! Last time I saw Ben he did not have hair! Amazing video.

BTW I just came across this https://www.swissinfo.ch/eng/aging-society/no-house-generation-the-impossibility-of-buying-property-in-switzerland/89287441?fbclid=IwZXh0bgNhZW0CMTEAAR7nwCIe3JuTjWu5-qfn37QLCO6_183naNm7eTYQb7NQmTw-Gh8ANHHxWhlrwA_aem_f40EovvM3UQ4IKAac0gEYw

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26

After the Covid pandemic, housing prices experienced an “incredible hike”, says Ursina Kubli, head of real estate research at ZĂŒrcher Kantonalbank (ZKB).

I am so lucky to have bought at the perfect time, just before covid.

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27

It can also go the other way, from the same news magazine:

(the same in deutsch)

28

I think we don’t really need to look very far, there are already countries with a declining population.
What happens, as the article describes, is that rural regions get deserted at an increasingly faster rate, while the pressure on the major population centers and desirable areas is the same if not higher than countries with increasing populations due to higher internal migration.

Just take Italy, 1€ houses in the countryside, still rising prices in major cities. This with a 40k population decline last year.
Same in Japan, which is further down the process with a 900k population decline last year.

I would say the trend is clear: anything near major population centers is “safe” from population decline for the next few decades at least. Rural not so much.

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29

At some point there must come a point where it balances out, when the financial incentives to live rurally just become too great.

Also rural in switzerland will still be relatively nesr to a bigger city anyway. It‘s a small country.

30

I think as people get older they want functionality more than aesthetics. So depends on what rural is in terms of infrastructure, logistics , mobility etc

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31

Old people move from cities to rural areas? I plan to do that. But yes, not too far that it’s out of the way of ‘everything’.

But you will have more time, so taking a bit longer to get into the city, maybe with an e-bike, isn’t as much of an issue as a long commute to work would be.

1 Like