Equity is no longer a barrier
29.11.2021
With interest rates low and renting becoming very expensive, many people want to buy their own home. However, this idea is quickly abandoned when the amount of equity to be provided is known. However, there are many alternatives for raising this amount.
In recent years, property prices have risen considerably and this makes it even more difficult to provide equity. Moreover, only a part of this equity can come from the 2nd pillar. This discourages many people.
In Geneva, two political parties want to facilitate access to property. The idea would be for the State to finance up to 15% of the equity capital of property buyers.
While waiting for a change, future buyers choose other solutions such as housing cooperatives or pooling of equity. In the latter case, they will buy a house which they will then divide into several flats.
Another trend is crowdfunding platforms that allow for participatory financing (individuals, companies, etc.). Others use private lenders to finalise their equity.
In an article in the magazine "Bilan", the company "Evahomes.ch" is taken as an example. Created last year, its aim is to facilitate access to property for people with a sufficient income without having to pay more than a traditional monthly rent. The remaining equity is provided by qualified Swiss investors in exchange for a return of 3% to 7% per annum depending on the risk. Thus, the equity is built up and the costs are covered by this "monthly rent". This 100% digital solution remains interesting for those who do not want or cannot resort to a loan.
Although all these alternative solutions are there to make up for the lack of equity, it should not be forgotten that the income must be sufficient to cover the expenses related to the purchase.
In recent years, property prices have risen considerably and this makes it even more difficult to provide equity. Moreover, only a part of this equity can come from the 2nd pillar. This discourages many people.
In Geneva, two political parties want to facilitate access to property. The idea would be for the State to finance up to 15% of the equity capital of property buyers.
While waiting for a change, future buyers choose other solutions such as housing cooperatives or pooling of equity. In the latter case, they will buy a house which they will then divide into several flats.
Another trend is crowdfunding platforms that allow for participatory financing (individuals, companies, etc.). Others use private lenders to finalise their equity.
In an article in the magazine "Bilan", the company "Evahomes.ch" is taken as an example. Created last year, its aim is to facilitate access to property for people with a sufficient income without having to pay more than a traditional monthly rent. The remaining equity is provided by qualified Swiss investors in exchange for a return of 3% to 7% per annum depending on the risk. Thus, the equity is built up and the costs are covered by this "monthly rent". This 100% digital solution remains interesting for those who do not want or cannot resort to a loan.
Although all these alternative solutions are there to make up for the lack of equity, it should not be forgotten that the income must be sufficient to cover the expenses related to the purchase.