Banks were lending too much, prices went crazy. Lex Koller, restrictions on purchasers, forced sale of property at death if no Swiss beneficiaries, extreme capital gains taxes on property, all this was piled on to push property prices back in line.
Around the 90s prices for detached houses were so high in terms of income multiples, that they sold for close to or more than today's prices. Banks that lent at the peak in Zurich often lost out. Places like Glarus, commuting distance, apartments typically fell by 50%, houses a good 30% after the correction.
We have exactly this on a flat - 20 years and no-one ever approved any renovations. We expect to see bills in excess of 30k per flat soon, as the roof is leaking enough to cause damage to the TWO flat below (loft + one under).... and as the roof is considered communal, this will have to do be done. The alternative is to pay for the damages to the two top flats every time it rains...
Sadly, this is a result of pretty much all the landlords in the building being buy-to-rent...
If I ever buy another flat (which is unlikely), I would first check to see how many buy-to-rent landlords there are... if that number is more than 0; it's a no go
Not even buy to rent. Same can happen with owner occupied who might not care that your flat leats. Or might not be able to pay. Or might be OK then they sell to someone else who rents it out. You have no control over this. That is why I would suggest never to buy a flat.
I'm listening... thanks for such interesting input. Yah, I come from a culture of strong attachment to ownership, but I also don't want to spend too much of my future money. I can see that in Zurich I have to pay over 1 million for what would cost +-300k in Ticino. That's where my doubts started. Obviously Ticino is a better deal. Even if it turns out to be a complete disaster in a long term, loosing 300k won't ruin me. However why are properties so cheap in Ticino? That's the question I'm researching. I don't think it's all about job opportunities. I stared to worry that the general trend of depopulating might be the factor, which would mean a total collapse at some point. Say, people are owning flats there, but not living there, looking for better times to sell. They won't ever be interested in renovations, etc. Most importantly from such point of view it might look like throwing a good money over a bad one the more they wait
There are plenty of expensive properties in the Tessin. It's all about location. There are also inexpensive properties, often very old, which require complete renovation. I think if you want to buy in the Tessin you should move here and rent for at least a year. This might give you a very different perspective.
Ticino properties will remain valued at Chf 300k, Zurich properties will also retain their value but more liklyhood of a capital increase as they are far better located for the general public.
We require unanimity.
Tom