Real estate has always been a safe haven. Investing in this sector is a secure, high-yield investment. In recent years, and especially in 2023, the market experienced a price increase. Beneficial for sellers, this situation was not always the most favorable for investors. For 2024, the situation seems to be reversing, offering great opportunities.
While rising interest rates may seem like a barrier for many buyers, they sometimes present excellent investment opportunities. This trend is generally accompanied by falling prices while maintaining an excellent rate of return. By anticipating a stabilization or decrease in these rates before it actually happens, an investor makes a good deal.
Imvesters explains.
Real Estate Sector: A Complex Dynamic
The Swiss real estate market is known for its stability. Considered a safe investment, it remains difficult to access.
Taking mortgage rate fluctuations as an example, it is easy to observe their direct impact on the market. When rates are high, property prices tend to fall. An investor then has the opportunity to acquire a building at a slightly undervalued price, facing less competition from other buyers. They can then hope to see its value recover quickly in the long term.
If rates fall, the number of potential buyers increases. Some of them can now become homeowners or borrow a larger amount. Competition for the same property intensifies, limiting negotiation possibilities. Prices also tend to rise.
With an expected drop in rates, is 2024 a good year to invest? The answer is yes!
By anticipating this drop, or at least some form of stability in these rates, you can act before seeing selling prices rise again. The purchased property is still slightly undervalued (or negotiated at an attractive price) and the expected return in the near future is optimal. It is based on the anticipated recovery in the coming months.
Good to know:
The reference rate is 1.75% and is expected to decrease as early as next June or July.
A Doubly Advantageous Situation for Investors
This year’s real estate market favors investors. In addition to falling prices and the end of rising rates, strong rental demand guarantees them a significant return. In major cities (Zurich, Lausanne, or Geneva) as well as in the most sought-after areas, the growing housing shortage is generally accompanied by rising rents. This trend is doubly advantageous for investors:
The occupancy rate of housing is high, and the risk of rental vacancy is at its lowest.
Rising rents guarantee investors a stable and solid rental income stream. The return is significant, especially when rates fall.
Invest Wisely to Minimize Risk
The Swiss real estate market offers many investment opportunities. Dynamic, it also requires a degree of caution from investors. This is the case with Crowdfunding. Its principle is simple and secure. You invest from 20,000 CHF, with no borrowing obligation, and become the owner of a share of a building (proportional to your participation). Every month, the return generated by your investment is paid to you. Upon resale, you benefit from any capital gain.
Another advantage of real estate Crowdfunding is that you are supported by industry experts. Each property is carefully selected, taking into account its location, the regional rental market, resale and yield possibilities, etc. Your investment is secure.
But the most important thing is you!
Make an appointment today with one of our experts to focus only on stable investments with returns of 6% and above.
