Hi there is no evidence that the market is going to crash. There is a shortage of supply and still very good demand from international buyers so the market is still stable across most sectors. Due to the Lex Koller rules and restrictions on foreign ownership there hasnt been the demand for housing over the past few years from professional Landlords and the Swiss tend to buy housing for the long term rather than speculate. Therefore the signs are that Geneva will be comparatively insulated from the property downturn experienced in most of Europe. If you would like more specific advice, please email me on my glocals account. Thanks Simon
simon1, Jan 18, 2009 @ 23:07

I'm no expert but the market seems to be pretty stable here in Geneva. Also the people I spoke to in this field just before the holidays seemed to feel that there won't be much change because there is a constant demand for accommodation here in Geneva and not that much available.

Still interest rates are falling so if you are looking to buy and have got at least 20% of the asking price, now is as good a time as any, especially if you're paying out a lot in rent.
lentil, Jan 18, 2009 @ 23:10

Thanks Lentil, I agree with your comments. There are a few Swiss banks who have good English speaking advisors for expats - Email me if this is of interest,

Thanks

Simon
simon1, Jan 18, 2009 @ 23:20

If you're a long term and can afford capital depreciation in next 2-3 years then you should be ok...otherwise....be very wary. One of my jobs is CFO of a major real estate devleoper and Western Europe is looking at up to 55% drop in values (this is based on property derivitave market). Switzerland not likely to be as hit but this recession has only just started and things will get much, much worse before they get better. Sorry for the doom and gloom but anything else is just wishful thinking....
nickpenn, Jan 19, 2009 @ 05:40

I am a real estate lawyer working with a number of international developers/landlords - whilst derivates may drop 55% we dont anticipate asset values to decrease more than 30%. Many buildings and developments were previously overvalued in any case - the next 6 months will be challenging but there are some good purchases out there and I have a number of clients looking to re-enter the market right now.
simon1, Jan 19, 2009 @ 10:17

[quote]Dear All,



Am presently renting delightful but expensive house in Geneva, and wondering whether to buy. Is the market about to crash here, as it has done so spectaularly in UK? What do you think?



Thanks in advance for your opinions



Debs[/quote]



Hi Debs, I am in inclined to agree with Simon on this one. The combination of demand from international workers and future demand once the Lex Koller laws disappear mean that the market here has a degree of price-support not enjoyed by other more dynamic, but also more fragile, markets.



On the other hand you can’t really expect a ‘bargain’. One of my firm’s areas of work is property finance, and also ensuring clients make the best use of their 2nd pillar and also UK pension assets, so that the purchase is as tax efficient as possible. We work with a property search consultant that not only finds a selection of suitable properties, but helps a client to ensure that he is buying at the correct price or better.



However, if it’s really an investment you’re looking for then you could do a lot worse than buy in the UK. Their price crash, combined with the devaluation of sterling means that forced sale properties are standing at a 50 – 60 per cent discount, to just 18 months ago. We are in the process of launching a new service, with a property search consultant, that will seek out best opportunities for our clients here and negotiate aggressively on their behalf to get the best price.



I hope that helps a little. Feel free to contact me if you have any questions.

Phillip
wilycoyote, Jan 19, 2009 @ 11:14

But of course this won't happen in switzerland....yeah right...good luck if you buy but be prepared for pricing to keep going down for a further 18 months, at least
nickpenn, Jan 23, 2009 @ 08:32