The mortgage reference interest rate was reviewed again on June 3 and the forecasts were confirmed: The interest rate remains unchanged at 1.75%. This blog post looks at what maintaining the reference interest rate means and what prospects it opens up.
Welcome stability
At a time when economic uncertainties and concerns about inflation are dominating everyday life, keeping the reference interest rate at 1.75% provides welcome stability. Since its introduction in 2008, this interest rate has been an important indicator of rent levels in Switzerland. For many, the stability of the reference interest rate also means stability in rental prices. This is particularly good news for many households at a time when the cost of living is rising in many areas.
Effects on tenants
For tenants, the situation remains largely unchanged. Rents will remain stable in most cases, as rents are directly linked to the reference interest rate. This is particularly good news in the current economic situation, as the rising cost of living is a burden for many households. Nevertheless, tenants should always ensure that rent adjustments are made correctly. A regular review of rental agreements can help to avoid surprises and ensure that all changes are transparent and comprehensible.
What does this mean for landlords?
Maintaining the reference interest rate also means a certain degree of planning security for landlords. No upward adjustments to rents are necessary for the time being. However, landlords must continue to expect rising costs for upkeep and maintenance. Careful budgeting and planning is therefore essential in order to remain profitable in the long term. Landlords should also take the opportunity to invest in the quality of their properties. Modernizations and renovations can increase the attractiveness of the property and contribute to stable rental income in the long term.
Forecasts for the future
According to Zürcher Kantonalbank and other experts, an increase in the reference interest rate is unlikely in the current year. These forecasts are based on the current economic situation and expectations for the future development of the capital market. As long as the Swiss National Bank keeps its interest rate policy stable, the reference interest rate will not change significantly. However, it remains important to keep a close eye on economic developments. An economic upturn or a change in monetary policy strategy could lead to adjustments.
Tips for tenants and landlords
- Tenants: Check your tenancy agreements regularly and make sure that any rent adjustments are carried out correctly. Stay informed about changes to the reference interest rate so that you can plan your rental costs better. You should also take the opportunity to find out about your rights and obligations as a tenant so that you are well prepared in the event of any conflicts.
- Landlords: Take advantage of the stable interest rates to invest in the maintenance of your properties. A well-maintained property remains attractive and profitable in the long term. You should also keep an eye on the development of operating costs and take measures to reduce costs if necessary. Proactive communication with your tenants can also help to maintain a good tenancy and identify and resolve potential problems at an early stage.
Conclusion
Maintaining the reference interest rate at 1.75% offers both tenants and landlords a degree of security in times of economic uncertainty. While tenants benefit from stable rents, landlords can continue to expect reliable income. However, it remains important to keep an eye on developments on the real estate market and the general economic situation in order to be able to react to changes in good time. Take advantage of the current stability to optimize your living situation and be well prepared for the future.
All data are without guarantee. The information on these Internet pages has been carefully researched. Nevertheless, no liability can be assumed for the accuracy of the information provided.