If you are wondering what to do with interest rates, energy prices and inflation having gone up and the uncertainty of today’s markets, rest assured you are not alone!Thank you to Harriet Kibbe for once again keeping us informed of the local real estate market and how to be property-smart!
Borrowing money is indeed more expensive than it was 6 months ago, although not so much compared to other EU countries, and it is possible that the higher interest rates will drive prices down… but demand remains very high in the Nyon to Geneva area, so what to do? Is it a good time to sell? Is it a bad time to buy?
The answer is one that you may not like: it depends, on your circumstances and on the property itself. Some owners may really need to sell whether or not they can make the most of the recent increase in property prices, while other owners can wait and sit it out, but we can hardly say that we're still in a seller's market.
If you are selling, make sure:
- The property looks livable: consider minor repair work, painting, tidiness and home-staging;
- You anticipate any potential issues that could delay the sale or impact an offer negatively (disputes with neighbours, getting any authorizations that might be required, etc);
- You have one aspect of the sale that you can negotiate on if not the price: date of transfer of ownership, furnishings or taking on repair costs.
If you are buying: - Put in as much of ‘fonds propres’ as you can; - Check with the vendors if they are willing/can transfer their existing mortgage, the rates could be more interesting, even if they expire in a year or so; - Shop around for mortgage offers, don’t solely rely on your existing bank. I highly recommend using an independent broker, there are many out there who can provide you with a tailor-made financial solution for you. Either way don’t put a cross on your property plans, seek advice and keep an eye out for opportunities! Harriet writes articles on the local real estate market and always has some great tips and insights. Have a look at the previous article on construction trends here.