With rising prices and living costs, it’s essential to know how to protect your real estate assets in the face of inflation. So, what strategies can you adopt to maintain the value of your properties?
Invest in Rental Properties
Real estate remains one of the most resilient assets against inflation. Why? Because rents often follow price increases, allowing you to maintain good rental profitability while covering rising financing costs. In Switzerland, rent indexation to inflation is an effective protection for landlords.
Diversify into Tangible Real Estate Assets
Purchasing properties in resilient areas, such as the urban centers of French-speaking Switzerland, is a prudent strategy. Cities like Lausanne and Geneva, where demand remains high, offer stability even during inflationary periods. You might also explore opportunities in peripheral regions experiencing strong growth.
Renovate to Increase Property Value
Energy-efficient home improvements (insulation, ecological heating systems) not only increase your property’s value but also reduce long-term costs. This offers a double advantage: higher value and substantial savings on energy bills.
Opt for Fixed Interest Rates
If you have a loan, choose fixed rates over variable ones. Fixed rates protect you from potential interest rate hikes that may occur during inflationary periods. In Switzerland, fixed-rate mortgages are common and provide significant long-term security.