The figures show two undisputed trends: the euro is falling, the franc is strong and the price of real estate in France has stagnated or even decreased in recent months.
By doing the right math and opting for a loan, the conditions seem to be right to get a good deal.
Let's talk about exchange rates
It's 2012 and one franc is 80 cents.
In 2015, the franc exceeded 90 euro cents.
Fast forward eight years later and the same franc is now over one euro, an increase of 25% in its comparative value.
In just a few years, the result of decisions taken by the Swiss National Bank, macroeconomic influences and comparative resilience to inflation and its effects compared to neighbouring countries have led to a robustness of the Swiss franc against the euro.
Swiss exporters naturally suffer from this balance of power because their goods or services are more expensive for a foreign buyer who holds euros. On the other hand, it is a good time to buy goods valued in euros as the franc has increased in value.
Investing abroad?
For an individual, there are many temptations: food, clothing, decoration or furniture. After all, why not take advantage of higher purchasing power?
However, let's take a closer look at real estate.
Let's turn our gaze to France, a neighboring country that has a potential proximity for your main residence or that can serve as a springboard for an investment aimed at rental income. And why not after all?
Looking at the figures reported by the main lending banks and notary associations, in 2023, a majority of cities are seeing the price of real estate fall.
This is the case in big cities like Paris. In many cases, prices stagnate and in a minority of cases, an increase of only 1% is noted.
The number of transactions with notaries is falling and there is no indication, at this stage, of a reversal of borrowing rates, an automatic lever on the price of a house or apartment.
What are the predictions for 2024? No one can say for sure. However, although a recent relative stagnation in inflation rates is admitted, a reversal is not expected and the rates dictated by the European central banks are not expected to fall in the short to medium term; The risk is too great in a market that remains volatile.
But rates are rising!
It's true.
Undeniably, rising policy rates are pushing up mortgage rates.
You only have to compare the average rates applied a year ago with today to see this.
In Switzerland, a five-year borrowing rate of 2.5% is commonplace. This is much higher than two years ago, but when you look at this rate over the last twenty years, it is still statistically low. For example, this is half the rate applied in 2003.
Also take into account the fall in real estate prices and the appreciation of the Swiss franc against the euro; an increase that has been going on for more than a decade.
You'll find that it doesn't take much for a real estate investment to make sense.
You still need to find the deal, negotiate and have the necessary funds for your loan.
Just like in Switzerland, it is often this famous capital that can block your project. Although...
Milenia: your partner
As a major credit player in Switzerland, Milenia is your trusted partner for all your real estate projects.
You don't have to invest in France to know this; Do you have a kitchen that needs to be renovated? Are you tempted by a swimming pool? Solar panels as the next development project? Electric charging stations for your vehicles? Contact a Milenia advisor and we will be able to guide you quickly so that you benefit from a balanced personal loan, respectful of your budget, at the best conditions on the market.
Your file will be composed with care and professionalism so that your money is released and paid into your account with ease.
However, let's go back to your project of buying in France.Unlike a mortgage, you don't have to have the property appraised by your bank, you don't have to justify any work that will incur, in fact, you don't have to clarify in any way the use of the requested funds.
So let's imagine that you find a financially interesting project because the selling price has dropped. The Swiss franc remains strong and continues to rise. Now is the time to take advantage of it, but you're missing a bit of capital.
Let's imagine that your project is an investment property and that the rents will allow you to repay your loan.
It would be a shame to miss this opportunity, wouldn't it?
Let's take another example, Belgium. Always in the context of a high-performance project. Of course, as an owner who rents out a property, you will have to pay various taxes but you will not be taxed on the rental income... Interesting, isn't it?
Brick by brick
Our core business at Milenia is the smart financing of your personal projects. Step by step, acquisition by acquisition, brick by brick... We all build our life journey.
It turns out that sometimes we need a boost. The best situation is, of course, that there is financial independence, no debt or no outstanding borrowing.
However, it is clear that things do not always go as we would like. Buying our first vehicle? Unexpected costs to cover? An underestimation of the taxes to be paid? A holiday to finance or an apartment that needs to be renovated... In short, there are a thousand and one reasons to take out a loan.
This article cited one of them, a real estate purchase project.
Make no mistake, a loan is signed after carefully studying your repayment capacity, your income, your expenses, and your personal situation as a whole.
But when all the lights are green and your commitment is a source of opportunity and not reckless risks, move forward serenely knowing Milenia is by your side.
