The alternative: Direct investments in Swiss properties

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Mervin Crawford
8 years ago
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1 Interest rates hit rock bottom? Incurred capital losses due to opaque investment products? All investments lumped together? Portfolio involves too many risks? Afraid of inflation? The alternative: Direct investments in Swiss properties with s-i-i.ch swiss immo invest Your partner for direct investments in Swiss properties Competent individual discrete

All investments lumped together? Portfolio involves too many risks? Afraid of inflation?

2 Why invest in Swiss properties? What can s-i-i.ch offer you? Which strategies do we recommend to hedge against future inflation? How is an investment project carried out?

3 Why invest in Swiss properties? The Swiss property market is sound and healthy. There is no bubble, and prices are not overstated as in other countries. There is no overheating. The property market in Switzerland benefits from stable political circumstances, clear and strong legal bases and a very moderate tax environment. Do you have enough of complicated investment products? We recommend you to directly invest in income property, i.e. no derivatives and no oblique products. Your properties are tangible, clear and can be recorded with the land register in the investor s name. Property investments are resistant to crises, inflation-proof and have a positive correlation against most other investment forms, i.e. when other investments lose value, properties maintain their or increase in value and return, thus reducing the volatility of your investment portfolio. In times of lacking high-yield investment opportunities (bonds, shares, fixed deposits etc.), direct investments in Swiss property offer an excellent riskreturn profile. Net returns of up to 8% before tax can be achieved without problems based on prudent risk-taking. Swiss property investments are suitable for conservative investors planning for the long term who are interested in a diversification of their portfolio and regular income. Therefore, they are also suitable as part of retirement provisions or as a strategy for the distribution of estates. Since it is made in Swiss francs, this type of investment also benefits from a stable and safe currency. In the current market environment, long-term mortgages are available at historically low fixed interest rates.

Do you have enough of complicated investment products? We recommend you to directly invest in income property, i.e. no derivatives and no oblique products.

4 What can s-i-i.ch offer you? Direct investments in properties require much know-how: o Not every income property generates the expected return and maintains its value. o The purchase of a property requires good market knowledge as well as legal and financial experience. o If a property investment is partly financed by loans, the right bank partners are necessary. o Finally, the property must be managed professionally in a way that maximises its return and maintains its value. o For many (private) investors, it is often too time-consuming and complicated to make or manage a direct investment in Swiss property on their own, or they lack the necessary contacts. It is exactly these fields that are the strengths of s-i-i.ch: we plan, buy, finance and manage your tailor-made Swiss property solution for you all from a single source, not involving any efforts and risks for you and exactly meeting your requirements. We have successfully been active in the property industry for more than 20 years and have become a renowned player in the property market. We have long-time experience and can make your investment a success through prudent project management. You will be advised and accompanied by a single contact, who is responsible for all issues relating to you investment. Discretion and speaking your language are of upmost importance to us. We offer you a maximum degree of security: o You continue to be the only person authorised to dispose over your investment. o The necessary bank account is kept under a name to be chosen by you. o You a free to use your existing or a new bank account for your property investment; we cooperate with any Swiss or foreign bank.

o Finally, the property must be managed professionally in a way that maximises its return and maintains its value.

5 o The purchase of real property is recorded with the public land register by notaries public under state supervision. Any payments in relation with the purchase of land are handled via the notary public and will only be delivered to the seller if the land register record is guaranteed. o Upon request, you may also entrust your lawyers office or auditor with controlling your investment. We ensure that the value of your property is maintained. We can arrange for efficient, comprehensive and low-cost insurance models, e.g.: o Building insurance, third-party liability insurance o Insurances against special risks such as terror strikes, vandalism or earthquakes o Insurance against loss of rent Unlike fund solutions, direct investments offer clear target returns, transparent commissions and the option to directly dispose over the property at any time.

o Upon request, you may also entrust your lawyers office or auditor with controlling your investment. We ensure that the value of your property is maintained.

6 Which strategies do we recommend to hedge against future inflation? Long-term investments in properties are largely inflation-proof. However, the following particular considerations still have to be made in this respect: o Experts expect that a high inflation is likely to occur in all countries in the future. The more liquidity has been injected into the economy during the crisis and the more money countries have borrowed, the higher such inflation will be in the individual countries. o Switzerland pursues a very moderate economic stimulus policy and has much less debts (43.7%) than the euro zone and the US (approx. 65% of GDP each) (figures as of 2008). o This suggests that inflation might be weaker in Switzerland and that the Swiss franc might increase against the EUR and the USD. Therefore, we can make you the following offer: we are able to offer you debt financing (mortgage) in EUR or USD. i.e. interest payments and redemption will also be in EUR or USD. Based on this strategy, we can significantly improve the long-term return of your property by also including the profit from differences of exchange and the difference between inflation rates in addition to the actual return. Our strategy is highly open and flexible: during the entire term, you are free to shift your mortgage from one currency to another at any time and as often as you wish. This option ensures that you can rapidly adapt to changes in the market environment. It goes without saying that detailed and permanent advice also forms part of our service.

The more liquidity has been injected into the economy during the crisis and the more money countries have borrowed, the higher such inflation will be in the individual countries.

7 How is an investment project carried out? Initially, we talk about and analyse your needs in detail. In this phase, we also clarify the legal and financial circumstances of your direct property investment. Based on the obtained results, we develop our tailor-made swiss immo invest concept for you. Such document will include all details of an investment, e.g.: o one or several direct investment properties o prices o finance plan with financing need and, if necessary, concept for debt financing o return calculations incl. rent chart o time schedule o tax planning o management agreement for the property o description of risks o insurance concept o our commission rates Based on our swiss immo invest concept, you will decide about your investment project. We are responsible for the professional processing of the entire project. Following the purchase, we arrange for the long-term management of your income property including all administrative and service-related works and regularly wire-transfer to you any excess payments as requested by you. With modernisation investments, we arrange for the preparation and implementation of the necessary works. In the event of a later sale of the property, we look after the entire handling of such transaction.

Such document will include all details of an investment, e.g.

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