200,000 francs for an apartment? This is possible in Reinach – with restrictions

The Wohnstadt collaboration ventures into a concept that has not been tried and tested. This is to allow people with less income and assets to dream of owning their own home, even if only temporarily.

A new building for 200,000 francs? It’s good, but be careful: “We have nothing to give,” wrote the Wohnstadt housing association in advertisements for its development on Ettingerstrasse in Reinach. A true defense “sales strategy” for a novel concept. The residential city is looking for potential temporary owners. What seems like a social-utopian experiment appears very sober and mature. Not many know about this type of housing, although it has been around for 20 years.

The co-operative’s managing director and architect Andreas Herbster said: “We’re looking for people who have thought carefully about what they’re getting into here. The principle is simple at first glance: instead of renting or buying an apartment like a condominium, it is bought for a limited time – in this case 30 years.

Like condominiums, the buyer is registered in the land registry and can take a mortgage from the bank. However, he or she only buys a 30 percent share of the apartment; To legally confirm this, the resident municipality must conclude a partnership agreement with each buyer.

Bring your dream of owning your own home within reach

The target group for the fifteen spacious 4½ apartments and six 5½ apartments is mainly young families with lower assets who have been tenants before, says Herbster. In the last 20 years, especially in urban areas and in the city, prices for residential properties have increased so much that even average earners are increasingly unable to dream of them. about financing their own home. According to Herbster, this is due to the Swiss system: “Land prices can only be so high because the mortgages are not valued.”

According to Herbster, banks manage a lot of debt and therefore have a secure business. But why 30 years? The 30 years is based on the phase of life in which young people start families and therefore need extra space, says Herbster. Once the children are out of the house, much space is no longer used effectively. That is one reason why the people of Switzerland want more and more accommodation for themselves. According to Herbster, this temporary home ownership should be considered with “sensible” ownership.

Temporary home ownership is only slightly cheaper than renting

From a financial perspective, temporary home ownership has few advantages: “Compared to similar rental properties, we are a few hundred francs cheaper per month,” says Herbster. The owner pays the interest on the cooperative’s mortgage, the building’s rental interest to the building’s owners, the administrative costs as well as a fee for maintaining the building’s contents and the costs for financing from the – out through the bank.

You cannot choose this freely and in the case of Wohnstadt it is the Raiffeisen Bank. On the one hand, this concept is less beneficial for banks because the mortgage must be closed at the end of the term. On the other hand, new customers could be won, says Herbster. Despite the advantages mentioned, the concept of temporary home ownership has so far only been implemented in the canton of Bern. Herbster explains: “The real estate market is not exactly innovative.” Banks, land registries and tax administrations are rather conservative, which is why it took a long time to clarify all the legal questions.

The concept was first successfully implemented

“This project is a lighthouse that is stuck in the fog and its lamp is not yet bright enough,” said Herbster, describing the situation. The residential town has been looking for potential buyers since July. The goal is to achieve 90 percent occupancy by the fall of 2025, says Herbster.

Every year, 1 percent of the property goes back to the cooperative until you are left with no property after 30 years. What happens then? “We will provide a buyback option. This means that the owners do not have to worry about selling it. ” Legally, they have the right to sell, even if they want to move out due to changed life circumstances. In fact, the association has control, which allows it to take stock after 30 years: “The next generation can then decide if they want to hold on to their home for a short period of time or the apartment to rent,” says Herbster. .

There are more than 700 apartments in the residential village and he can certainly make such an effort. “The project is not hurting us. “Sometimes you have to take risks,” says Herbster. Temporary home ownership is also interesting for profit-oriented investors. If you think in long terms, Herbster adds. However, future home owners often think about even longer periods and that home ownership cannot be inherited over time. Perhaps this is the social-utopian part of the project, which makes society think about property.