Rents continue to rise across Switzerland
https://www.swissinfo.ch/eng/various/rents-are-rising-across-switzerland/91736085
Posted by Key_Classic_8722
Rents continue to rise across Switzerland
https://www.swissinfo.ch/eng/various/rents-are-rising-across-switzerland/91736085
Posted by Key_Classic_8722
17 Comments
Rents continue to be increased across Switzerland.
And so do salaries. This circle can’t end, and it’s puzzling me how thats not obvious:
– Salaries increase
– Property Construction, Maintenance and Management gets more expensive because employees in this field get higher salaries
– Property Owners unload higher costs of ownership to rent.
– Rents increase
– People complain: we need higher salaries, because rents just got more expensive
– Cycle restarts
It’s just how exonomy works.
Nihil novi sub sole.
Greed must greed. Poor must be poorer.
Not everything should be 100% free market. Necessary goods, like house, should be regulated better
I personnaly don’t care whether rent increases or not. We have to pay for the costs of housing.
What I care about is whether the owners make an excessive yield or not.
– when they renovate, are they increasing their margins
– when a new tenant arrives, what justifies the rent increase beside a rise in interest rates and rising maintenance costs
Over the years, these increases don’t really match the actual costs rising.
Demand and supply.
Do you want to reduce demand for apartments? You need to reduce the number of jobs available in Switzerland.
Best strategy is to increase supply.
This is what happens when the market is not allowed to operate freely. Demand keeps rising and supply isn’t allowed to catch up, let alone outstrip it. It’s not like politicians don’t have access to decades of economic evidence, this isn’t rocket science.
https://www.ft.com/content/86836af4-6b52-49e8-a8f0-8aec6181dbc5
There is an important initiativ coming up to deal with this: https://www.sp-ps.ch/kampagne/mietpreis-initiative/
Instead of you having to contest your rent right after you signed causing unavoidable conflict between you and the property owner, this would require automatic periodic adjustment. The law exists already regarding how high rent can legally be, the issue is very few take advantage of it because of the friction.
Property owners have no problem asking for more rent when the Mietzins goes up, but they hardly ever offer to lower rent when the Mietzins goes back down.
All this initiativ does it actually apply the existing law.
Obviously.
What do we want 60 million people here ?
Lets not forget about the ‘loi sur l’aménagement du territoire’ that prohibit new constructions outside of cities. If you cant build on free land and restricted to already densly packed aglomerations, the price increase.
I can confirm that yields are actually rather low in Switzerland. Can be easily under 3%. By the time you pay costs that’s barely any income left.
Zurich example. Yield 2.9%. 1% goes on maintenance. Approx 1-1.5% goes in mortgage interest. Leaving at most 1% profit. And that’s only if interest rates stay low.
Most rentals are either
1 people who held property for decades
2 investment firms that use it as a place to park cash.
Is this data accurate? If it’s based on the prices seen on home gate it could also mean that people are for example moving to lower priced apartments and therefore the average rent published on home gate has risen.
There are less apartments with lower rent because they dont stay long on home gate or they are already occupied.
Fuck this shit I’m moving back in with my parents.
Adulthood sucks.
Good. Let’s hope it will increase over the minimum wage.
we can’t take it anymore.
In another news: sun has risen.
Rent continue to rise but salaries not. I hope the some political party takes cognizance and initate a refrendum which can actually help the people for something meaningful.