RE/MAX Eglisau – Taking home two titles in October
The real estate market is a highly contested one these days, thanks to properties being a scarce commodity. Even more gratifying then for the team at RE/MAX Eglisau to have been awarded both the title of “Best Office” and “Best Agent” for the month of October. RE/MAX Switzerland has handed over the certificates and questioned Markus Kohler, their head of office, regarding the current situation in terms of real estate in and around Eglisau. Read on to find out whether he thinks it is a good thing to sell these days or not.
Interview with Markus Kohler from RE/MAX Eglisau
You managed to be awarded both the titles for Best Agent and Best Office of the month! What went particularly well in October?
We are very proud to have been awarded those titles again. Customer referrals are by far the best advertising tool; we keep noticing just how important it is to keep in touch with our own customers and to offer an outstanding level of service. Positive feedback from satisfied customers often gets us new referrals, and word-of-mouth recommendations have brought some interesting and, more notably, big projects our way. In October, we were able to close the deal on some of those. However, all of this is only possible when working with a strong team, which is why I would like to thank our office assistants for their ongoing efforts.
Can you tell us a bit more about how you are seeing the current real estate market in your region?
The current market is really crazy, there’s no two ways about it. Demand is extremely high while there is not much on offer. We are actively canvassing the market on a daily basis for all our customers wanting to buy property - a task proves to be a real challenge. The real estate market is a highly contested one and there are a lot of new providers competing to get their hands on very little stock. However, our office is pretty well positioned, thanks to having signed several new developments that will keep us busy for a few years to come. We are well-reputed when it comes to our areas of expertise, and this gives us a head-start when competing for mandates with new providers.
In light of the continuously increasing prices, would you recommend selling or rather letting property?
It is a really individual choice and there is no single answer. It depends on the owner and the property, really. Financially speaking it definitely makes sense to sell now - any sale will be lucrative. I would go as far as saying that it is as lucrative as it has last been 20 years ago. This, on the other hand, also means that prices for a substitute property will be very high.
Generally speaking, investing in a rental home can really pay off at the moment, with property being a relatively safe asset, safer than many others, and offering attractive returns. However, this is only true as long as there are not too many latent vacancies and as long as the tenants are reliable. So-called rental nomads or “messies” can quickly change the picture and lead to unforeseen issues. Personally, I do not like to invest in a single property but I’ll rather try to spread the risk over several apartments, ideally by purchasing several units in one building or development. This minimizes administrative efforts and expenses while affording me more control in terms of refurbishments, renovations or renovation funds etc.
The story is a totally different one with family homes. I am not a fan of letting family homes as the returns are hardly ever worth it. Additionally, the wrong tenant can do a lot more damage in a house with a large garden than in an apartment. The way I see it, family homes are very often let based on emotional reasons - such as the owner not wanting to let go of a house that was his home for many years or wanting to keep it for the next generation. While these reasons are understandable and can be reasonable, they hardly ever make sense in terms of economical factors.
What are the benefits of selling one’s property now with prices still increasing?
I believe that in the months and years to come prices in rural areas will stop increasing at the same fast pace they did in the past two years or so. The COVID pandemic was a driver for the property market. This effect will eventually (and I am guessing soon) lessen. Increasing home mortgage interest rates are another thing. While they are not likely to increase rapidly, there are first signs that make me suspect they will not remain on their all-time low for much longer, the inflation and the interest rate hike in the US just being two of those signs. These two factors make me expect a recovery of the rural property market in the months to come, with prices probably even temporarily decreasing. In the long run, however, investing in real estate will remain very interesting and lucrative.
What advice do you have for people wanting to purchase property in the current market situation?
Currently, it can be a good strategy to keep waiting to see how the prices are going to develop. It is hard for people looking to buy to find the right property for the right price. Demand is just too high. We have advised some of our customers to consider looking for rental property for the time being and to start shopping around again once the market has recovered. That being said, no one is able to really forecast either the general market’s or the prices’ developments. This is why it makes sense to risk buying at a higher price in case you have found your dream property - as long as the bank is willing to finance it at still sensationally low home mortgage interest rates.
Your real estate experts in Eglisau
You are looking to buy, sell or rent property in and around Eglisau? In this case you should get in touch with Markus Kohler and his team. Arrange a consultation that is both noncommittal and free of charge (online meetings are available too) to find out which solution best fits your needs. Here is how you can reach them:
Phone: +41 43 810 76 01