And how do current interest rates affect the profitability of real estate investments?
Lower interest rates generally have a positive impact on profitability. It could be observed in the market that due to increased interest rates and the associated higher financing costs, the prices of investment properties have no longer risen as massively as they did during the low interest rate phase. Here too, it is worthwhile to pay attention to long-term investment and planning and to carefully examine the properties, including the realistic and sustainable rental income.
Are there any factors that real estate investors should currently pay particular attention to when financing investment properties?
The market is and remains cyclical. In the current economic situation, which is characterized by inflationary pressure, falling interest rates and uncertainty on the financial markets, sound planning is essential. For example, higher equity reduces risk when property prices fall.
Which types of property currently offer the best return potential, and which locations in the canton of St.Gallen are particularly attractive?
Multi-family homes remain an attractive investment as demand for rental apartments remains consistently high in many regions. In the canton of St.Gallen, particularly in urban areas and well-developed regions, there is stable rental demand that enables solid returns.
Speaking of location: What should private buyers pay attention to when choosing the location of their property; Is it advisable to compromise on location in order to afford a home?
The choice of location is one of the most important decisions when buying a property. It not only affects the quality of life, but also the long-term value of the investment. The surrounding infrastructure such as transport connections, educational institutions and shopping opportunities should be taken into account. Proximity to work (commuting time) and the neighborhood should also be taken into account. Ultimately, it is a consideration of many factors that play a role in the decision. You usually have to make certain compromises.
How does acrevis see the future development of the St.Gallen real estate market?
The real estate market in St.Gallen has recorded steady but moderate price growth in recent years, particularly in urban areas and well-developed suburbs. Demand currently continues to exceed supply. However, pricing is predominantly based on fair value; Excessive prices are not paid. Due to regulatory influences on capital requirements for banks, mortgage lending may be handled more restrictively.
