Experience shows that real estate is an investment class that generates risk/returns more attractive than those offered by traditional financial investments (stocks, savings, bonds, etc.).
It has the quality of being tangible, less volatile, and local. However, it requires significant equity and often remains, wrongly, inaccessible.
Let’s discover together how the market is evolving and making it more accessible to gain property ownership.
Investing in Real Estate: A Market Difficult to Access
Real estate investment has always been reserved for institutional investors, professionals, and the wealthiest investors.
Let’s recall that to invest in real estate in Switzerland, one must face certain barriers:
- A substantial initial capital contribution
- Restrictive conditions and mechanisms and specific legal particularities
- The complex and burdensome coordination of various stakeholders
- A rigid legal framework
Indeed, today, to become the owner of a building, one may need several million francs depending on the geographic location. Therefore, you must be able to provide the necessary equity, which greatly limits the potential investors’ possibilities.
The strict conditions for granting mortgage loans do not help either. Financing conditions are increasingly difficult (notably the limitation on the full withdrawal of the 2nd pillar, which may represent only about 10% of your total contribution) and the strengthening of amortization requirements.
Another constraint in real estate: the obligation to work with real estate professionals. Often, the investor has several points of contact that must be successfully coordinated.
Managing these different stakeholders can prove complex because the investor is not necessarily from the real estate world and does not always know how to proceed.
All these reasons tend to encourage people to keep their savings safe, even though the growth of the Swiss real estate market is experiencing significant development.
Crowdfunding or the Democratization of Real Estate Investment
At a time when investing in property is often an inaccessible dream, real estate crowdfunding is gradually establishing itself in the market.
An investment solution that allows everyone to become co-owners!
This increasingly popular phenomenon democratizes real estate investment and enables anyone to grow their savings through investments proportional to their participation.
Indeed, these investment solutions offered by crowdfunding platforms are accessible from CHF 20,000.-
They allow you to generate a return proportional to your investment every month and benefit from potential capital gains upon resale.
Depending on the duration and risk of the operation, as an investor, you can usually receive returns ranging from 5% to 8% over 3 to 7 years (estimated return and not guaranteed).
In Conclusion
Looking to the future, this evolution in the real estate investment market is a real step forward that now allows everyone to become co-owners simply and quickly!
So, will you take the plunge to become a co-owner of a property in Switzerland with over 6% return? Try the experience with Imvesters, who will be there at every step of your journey to support you in your investment and decision-making.
