Good! The houses are too damn overpriced and real estate is an absolutely unproductive asset.
It’s good news for young families. Rising interest rates will allow them to buy property at a fair price and investors will not drive up prices unnecessarily.
In the 80s, interest rates where much, much higher but houses cost only 2-3 annual salaries. Owners were able to amortise them within a decade. Nowadays they cost 15 annual salaries – impossible to ever pay back.
By bringing house prices to better levels, everyone is better off!
I think the Swiss Central Bank has learnt from Federal Reserve that they act before it is too late.
Also, the original Swiss interest is negative 0.75%, hence they have room for a large hike.
Let’s wait until end of the year. They have to rise huge, also like the other countries to get inflation down and this in a recession. I bet they won’t go that far because it would destroy ever government and our social system because of the debit they make and this in a recession. If yes I believe it will only work if we stay in a war which makes more noise than living standard falling. I hope people will avoid this war. We will see. I bet against it even it is very possible at least in Europe.
3 comments
Good! The houses are too damn overpriced and real estate is an absolutely unproductive asset.
It’s good news for young families. Rising interest rates will allow them to buy property at a fair price and investors will not drive up prices unnecessarily.
In the 80s, interest rates where much, much higher but houses cost only 2-3 annual salaries. Owners were able to amortise them within a decade. Nowadays they cost 15 annual salaries – impossible to ever pay back.
By bringing house prices to better levels, everyone is better off!
I think the Swiss Central Bank has learnt from Federal Reserve that they act before it is too late.
Also, the original Swiss interest is negative 0.75%, hence they have room for a large hike.
Let’s wait until end of the year. They have to rise huge, also like the other countries to get inflation down and this in a recession. I bet they won’t go that far because it would destroy ever government and our social system because of the debit they make and this in a recession. If yes I believe it will only work if we stay in a war which makes more noise than living standard falling. I hope people will avoid this war. We will see. I bet against it even it is very possible at least in Europe.