This spring looks promising for the property market

With its latest interest rate cut last week, the Swiss National Bank (SNB) is providing a further breath of fresh air and a boost to the local property market at the start of spring. It is expected that mortgage rates will fall further or stabilise at their current low level. Saron mortgages in particular, which are directly linked to the SNB’s key interest rate, are becoming even more attractive as a result of the SNB’s rate cut. The interest costs for a Saron mortgage consist of the key interest rate plus an interest margin. As for fixed-rate mortgages – which remain attractive – with terms of up to ten years, experts expect a sideways trend, meaning fluctuations only within a certain range. This is because the expected interest rate cut has, to some extent, already been factored into the pricing of fixed-rate mortgages.

A good time to buy a home

When it comes to buying a home, the focus tends to be on either a short-term mortgage or a Saron mortgage – or a fixed-rate mortgage – depending on the buyer’s risk appetite or need for security, as well as their financial situation. “Overall, it is reasonable to assume that interest rates will stabilise at a moderate level,” says Thomas Graf, an experienced Bern-based estate agent. The risk of interest costs suddenly rising again has diminished. Consequently, planning certainty has increased. This creates a healthy interest rate environment which, regardless of the type of mortgage chosen, provides a sound basis for buying a home in both the medium and long term. “Now is a good time,” explains Thomas Graf. Home ownership remains in high demand. Whilst property prices have often risen rapidly in recent years, current data shows a slight easing. Prices remain stable, particularly in urban areas, whilst the highest growth rates are being recorded in mountainous regions. “Many people in Switzerland dream of owning their own home – and now, thanks to attractive interest rates, the conditions are right to turn that dream into reality,” emphasises the property expert.

Buy or rent?

Switzerland is regarded as a country of tenants. When it comes to housing, the question ‘Buy or rent?’ is therefore one that preoccupies many people here. The key issue here is which of the two options has a greater financial impact – or, in other words, which is cheaper. Until recently, homebuyers still had to shoulder a slightly heavier financial burden than tenants. However, falling mortgage interest rates are creating a new dynamic – in favour of home ownership. Added to this is the fact that rents are rising due to the shortage of available rental properties. This means that – despite regional differences – buying is generally becoming cheaper than renting again.
For a successful property purchase, Thomas Graf recommends seeking expert advice: “Every home is unique and represents a significant asset. This requires proven expertise, professionalism and experience. After all, the property market is a demanding business.”

Combined property and financial expertise

The experienced property team at thomasgraf ag will be happy to advise you personally on the various aspects of home ownership – whether it’s a flat or a detached house. This established property service provider also offers an exciting selection of attractive properties for sale in both categories. thomasgraf ag is a certified member of the Swiss Chamber of Estate Agents (SMK) and will also support you in the sale of a property – providing a personalised service that meets the highest quality standards. Thanks to thomasgraf ag’s close cooperation with the asset manager and family office service provider TRIONINVEST, as well as the financial services provider hypolino ag, we offer you a combination of property-specific and financial expertise, many years of industry experience and a strong network.