Are you feeling uncertain about current interest rate trends? We understand. We'd be happy to inform you about the current situation and explain why building a house is still a good investment and makes sense even with the current interest rates.
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Factors to consider:
So-called "negative interest rates" have disappeared since rising inflation. Consequently, mortgage rates are now between 2% and 3%, depending on the term and type of mortgage. Understandably, this is causing uncertainty for potential homeowners who want a prefabricated house built using solid construction methods.
However, one thing you shouldn't forget is that, in a long-term comparison, current mortgage rates are at a moderate level. Just 20 years ago, interest rates between 4% and 5% were the norm. Looking at the years 1989 to 1992, we see that mortgage rates were even above 8% back then. While current rates aren't quite as low as we've been used to, the situation isn't considered high.
In 2021/2022, inflationary price increases were recorded not only in Switzerland, which had already been combated in previous decades by raising interest rates. Accordingly, these rates could fall back to a lower level once the inflationary trend and the international crisis have subsided.
Another crucial factor is that, according to experts, continued price growth in residential property is expected in almost all regions of Switzerland. Owning your own home allows you not only to realize your individual dream house according to your wishes, but also to invest in a stable asset. This is especially true since demand in the real estate market remains high and is unlikely to change significantly in the medium term. This high demand cannot be met by the existing supply, which explains why the value stability of real estate – compared to other investments – is demonstrably secure. Building land, in particular, is scarce and highly sought after – so if you have found the ideal location for your project, you shouldn't delay your decision too long, otherwise someone else will be happy to take it.
It's also important to consider that, objectively speaking, renting is still more expensive than a mortgage. Rising interest rates or increased utility costs can ultimately be passed on to tenants. When you build your solid home with Atmoshaus AG, you also have several options for influencing your energy costs. For example, you can consciously choose to use energy-efficient appliances or equip your house with a photovoltaic system. Atmoshaus AG builds exclusively to the highest energy standards in Switzerland, which significantly impacts sustainability and minimizes your utility costs.
The fact that you can deduct loan interest from your taxable income also maximizes your available capital. This also applies to maintenance work that preserves the value of the property, which reduces the taxable amount.
It's understandable that rising interest rates are causing some uncertainty. However, when all factors are considered, owning a home offers significantly more advantages than renting. Our experienced sales consultants will not only assist you in finding building land or planning your project, but will also gladly support you in clarifying your financing options.
Do you have questions about this topic or would you like a personal assessment? Our experts are happy to assist you.
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