Roland Morisod - Investing in real estate in Switzerland.

Investing in real estatein Switzerland

• Real estate investments have a long history and are the oldest types of investments in Switzerland

Why invest in real estate in Switzerland?

• The Swiss real estate market is robust and healthy


• Unlike other countries, prices are at a realistic level

• The Swiss real estate market enjoys a stable political environment

• Switzerland offers a clear legal and strong framework and a moderate tax

• Investing in Swiss francs also benefits from a stable currency and secure


http://fr.wrs.yahoo.com/_ylt=A0PDoddc2YBOxSMACcFlAQx.;_ylu=X3oDMTBpcWpidGtpBHBvcwM4BHNlYwNzcgR2dGlkAw--/SIG=1kv89ipmn/EXP=1317095900/**http:/fr.images.search.yahoo.com/images/view?back=http%3A%2F%2Ffr.images.search.yahoo.com%2Fsearch%2Fimages%3Fp%3Dfranc%2Bsuisse%26ei%3Dutf-8%26fr%3Daltavista%26fr2%3Dsfp&w=608&h=730&imgurl=upload.wikimedia.org%2Fwikipedia%2Fcommons%2Fc%2Fcb%2FCHF_coins.jpg&rurl=http%3A%2F%2Fparciparla.kazeo.com%2FDivers%2FListe-des-pieces-de-monnaie-de-la-Confederation-suisse%2Ca2049464.html&size=89KB&name=suisse+liste+des...&p=franc+suisse&oid=8ac3666b3d87b3304bc34a39b6c747ee&fr2=sfp&no=8&tt=34000&sigr=137lh8krr&sigi=11pdtq52f&sigb=12sbpsguu&type=JPG&.crumb=88YRcBG0oUy

• The owner of a property is registered land



Several types of investments are possible

1) The main house or apartment to live in Switzerland permanently. A residence permit is required



2) The purchase of an apartment or a residence only for holidays. No need to be in possession of a residence permit, but a purchase authorization is required



3) The investment in an industrial, commercial, office or hotel. For this type of purchase or investment, no authorization is required



4) investment or equity investment in residential buildings. It is possible to make investments or purchases under certain conditions


Examples of investments

Residential hotel with 20 apartments of high standard, for rent, near Geneva

Purchase price: CHF 16’500’000 .--

Equity (cash contributions): CHF 5’445’000 .--

Bank loan (Swiss bank): CHF 11’555’555 .--

Net annual rental entries: CHF 820'000 .--

Annual expenses (taxes, management, interest, maintenance) CHF 488'487 .--

Net income after taxes and charges: CHF 331’513 .--

Net income as a percentage, the first year: 6.09%

Calculation for the first year



Residential hotel with 20 apartments of high standard, for rent, near Geneva

Value of the property after 10 years: CHF 18'200'000 .--

Balance of bank loans: CHF 9'898'000 .--

Effective portion of building: CHF 8'302'000 .--

Net rental entries over 10 years: CHF 9'631'701 .--

Total expenditure over 10 years (charges, interest, management): CHF 5'231'167 .--

Net return over 10 years paid taxes and charges: CHF 4'399'543 .--

Total entries (rental and capital gains on real estate) CHF 7'256'543 .--

Calculation of 10 years

Gain on equity: CHF 2'857'000 .--

This calculation is based on an initial investment of CHF 5'445'000 .--. In case of resale of the property after 10 years, the investor takes his own funds and made a net profit of CHF 7'256'453 .--.



With all these figures, one can easily notice that, over a period of 10 years, an average yield of only the inputs leasehold, amounts to 8.08% net.

In addition to this performance, the subject took property valued at more than 2.8 million Swiss francs, representing almost 49% of the initial investment.

At present, no investment, other investments in high-risk and often dangerous, no evidence to match such performance.

Of course, we can easily show other cases of investments in amounts below or above.

This is a concrete example of an existing residence.

The detailed figures are available and complete

Roland Morisod - Investing in real estate in Switzerland.

Documents

Transcript of Roland Morisod - Investing in real estate in Switzerland.