Only 15 percent of people in Switzerland can afford to buy a home (iamexpat.ch)
Down from 60% in last 20 years.
https://old.reddit.com/r/Switzerland/comments/1c7undv/45_of_swiss_cut_out_of_home_ownership/
Posted by Every_Tap8117
Only 15 percent of people in Switzerland can afford to buy a home (iamexpat.ch)
Down from 60% in last 20 years.
https://old.reddit.com/r/Switzerland/comments/1c7undv/45_of_swiss_cut_out_of_home_ownership/
Posted by Every_Tap8117
12 Comments
You dont need many home buyers if you have a few that buy many each! *taps forehead*
The downside here is only visible for those that cant afford to buy a home. Those that dont feel it are the ones with a say, sadly, and the means to change something.
If the real wages would have increased as much as the rent/housing and healthcare prices, we would not have any of the discussions we have today. The BIP over the past 20 years went from 290B USD to 820B USD. Wages tho…
No surprise here
Forever renters
When the population grows as it does its not surprising
Liberalism maybe?
Yepppppp
Yet a higher percentage of people own today than 20 years ago.
No shit….in Bern for example, you are paying 700 – 800 k for a house/apartment that needs complete renovation!!!! Plus, depends on the area…i decided long ago that buying a house here is not viable..use that cash for investments and when you are older, move to another country 🙂
I will have to work till my 70s if I take up a mortgage
Then house prices will have to come down or wages will go up, because the current owners will inevitably at some point die or leave, and there have to be an equal amount of buyers for those houses. It’s not as if home ownership is going down – back in 2000 home ownership was a 34.6% of Swiss households, it is 36.3% in 2023, so right now a similar amount of people can afford to own a home as a generation ago.
This is a somewhat confusing article – presumably they mean that only 15% of *current renters* can afford to buy a house, not the population as a whole? I mean, it makes sense that most of the 36.3% of the population that already owns a house, cannot afford another one.
Or do they mean that while for few, their *income* alone is not high enough, but if you include their wealth (i.e. pension fund savings) it is high enough to buy a house?
To be honest, if I would have rich parents, I would rather prefer to inherit 2.5m CHF in an ETF Portfolio over a house worth 2.5m CHF.
Given that I don’t rich parents, this thought is completely irrelevant.
I mean you still get more space and higher quality for the same price. Let’s say you know you want to settle down in Switzerland. You have a wife and plan on having kids. Why not buy land and built a house for let’s say 1 million instead of paying 3K rent per month for less space and less luxury features such as several bathrooms, closets, balconies, a garden etc.
Let’s say you take that 1 mil loan. You pay it off in the span of 30 years. So 33,333 CHF per year or 2,777 CHF a month. You would have paid the same money for less space and less comfort for the rest of your life. But now you can own the place you live in, design it the way you want and eventually pass it on to your children. Your children will have a major advantage because they don’t have to spend thousands and thousands of francs on rent each month.