"There is no ideal formula for correcting any difference in value (property/share)."

Details of calculations – article: The cost of substandard properties https://agefi.com/actualites/acteurs/le-cout-des-passoires-immobilieres

"Except that this argument has a dual effect, which is hardly sentimental: what is the discount on a substandard building (in terms of energy performance) compared to a market standard that has yet to be invented? Is a new building worth more or better than a building that is forty years old or more, given that administrative law and the 'eco+' trend are now more restrictive?"

"As long as tenancy law does not take into account the cost savings for tenants in energy-efficient buildings, no landlord will have any interest in investing without a return."

"The result is spectacular. First, to match the 'previous' yield, revenues must be increased by 20.26%. This can be done through rent increases or subsidies. Someone has to pay."

Real estate: heading for a "soft crash"?

A more elaborate definition of degrowth would be: the deliberate sabotage of a place in the hope of improving the quality of life there?

"The simplest solution would be to sell a little to balance the proportions of real estate and securities."

The problem lies in the approach taken by political and economic actors to a cardinal virtue: amortisation. The 20% capital requirement is scandalously insufficient to absorb a market correction. Rather than penalising, we should therefore encourage parallel savings that can withstand an accident. In particular, by devising a motivating tax exemption framework, limited to amortisation."

The managing director of Ami International, Lorenzo Pedrazzini, has drawn up a standard contract to serve as a basis for landlords and tenants.

"Prices have doubled in the last twenty years. That's true. Just as true as the Swiss stock market, which also generates dividends. Except that when it comes to property, there is a nuance that is not insignificant: the cost of borrowing, of mortgages, and the risk involved. With property, you should never measure the price, but the cost. That's the point here. "

The most spectacular example is that of retail, where leases have never provided for a "force majeure" exception (this is set to change, that much is certain).

The second real estate segment at risk from coronavirus, just after urban retail, is offices.

Leasing agreement

In Geneva, a new upward cycle may be beginning for city centre offices. Rental prices are rising for the first time since 2013, even though multinational companies are still not moving in.

No need to go into exile. The parallelism of discounts can also be observed in Switzerland.

You can confine an activity, but you cannot speculate on time, the duration of remission or its effects! A crisis is not a rule of three. Economic forecasting is impossible.

If the tax value is the same for everyone, we see that a pension fund can purchase more than three times the price of an individual with the same return.

A 20% fall in property values would result in an extraordinary write-down of at least CHF 40 billion.

A pension fund may purchase a property for up to three times the price that a private investor would pay for the same return.

Comparing housing to jobs is as intriguing as comparing the size of carrots to the religion of those who grate them.