Selling after many years is not always so easy for most people when several generations have lived or grown up there. In view of constantly rising property prices, should you sell the property immediately or is it better to rent it out? However, both options and scenarios also harbour advantages and major disadvantages that need to be examined and considered.
RESIDENTIAL PROPERTY IN SWITZERLAND IS IN DEMAND
In Switzerland, prices for many detached houses and owner-occupied flats have almost doubled in the last twenty years, depending on the region. Home ownership in Switzerland is in high demand. At the moment, prices for single-family homes in particular are higher than ever before. For many, the dream of owning a traditional detached house is slipping further and further into the distance. According to the latest figures from property consultancy Fahrländer Partner AG, sales prices have already risen by 1.5 per cent between the first and second quarters of this year.
And by an average of 7.5 per cent compared to the same quarter of the previous year. Condominiums have also become 3.8 per cent more expensive since mid-2020. Homeowners are benefiting from this trend. The decision to part with your home is not always an easy one, as it is often associated with many emotions and memories. After a certain age, a property - with a large garden, for example - can also become too much. Thanks to a house sale, the owner can use the proceeds to buy a small flat, for example, invest the money profitably or fulfil a long-awaited dream. "If you have to sell under pressure, you can't conclude a good deal, neither in the interests of the buyer nor for yourself," say the property professionals at WENET AG. So get in touch early and check all the options with our experts at your location.
FAMILY FOR MONEY
Letting also has advantages: Firstly, the property remains in the family's possession and could be available for their own use at a later date. The next generation could also benefit from this. Another plus point is the regular rental income as a long-term and additional income. However, reserves must also be built up from this income in order to be able to maintain the property. Another argument in favour of letting is if the rental income is to be used as a capital investment for retirement provision. The same applies to those who prefer a continuous and long-term source of income and do not mind investing time and money in letting tasks. The fundamental question remains: should I sell or let the property? This question also arises when owners have inherited a property and will not be living in it themselves. The supposed "gift" can quickly become a burden. If you are part of a community of heirs, it is often difficult to divide the inherited house equally between the individual parties. In this case, it is worth selling the inherited property and dividing the sale proceeds between the parties.
KEYWORD: EXPENDITURE LANDLORD
You may have to deal with complaints from tenants. Of course, owners can also sell their property at a later date and rent it out for the time being. However, this also harbours risks and major disadvantages, as managing a property should not be underestimated and can incur costs. It is often time-consuming and very cost-intensive. For example, repairs have to be organised, rental income checked and accounts drawn up. Possible changes of tenant also cause additional time expenditure. It should not go unmentioned that the property may lose value if it is rented out. This is because tenants tend to take less care of the property when it is not in their possession. Properties in need of renovation and refurbishment are particularly costly and if you want to renovate, you first have to inform the tenants, which can provoke and possibly cause legal disputes, so be careful. They can lead to financial bottlenecks for landlords if the necessary reserves are not available. "You can't always give tenants notice immediately just because you no longer want to or because everything is getting too much for you; you have to comply with the relevant deadlines. There is a good chance that the tenants will contest the termination and thus delay it. If you want to avoid these costs, which should not be underestimated, you should think about selling your property. We recommend involving professionals in the preparations right from the start.
SUPPORT, HELP AND ASSISTANCE
As the wishes, needs and living situations of homeowners are as individual as their lifestyles and living arrangements, all these questions can be answered by consulting one of our experts.
Thanks to our experience, expertise, personal distance and neutrality towards the property, we can provide you with optimal advice, support and professional guidance throughout the entire process. We recommend paying attention to quality and reliable companies.
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