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The dream of owning your own home can become a reality for the less well-off with the “temporary home ownership” model. A property is now being sold in this way in the Basel region of Reinach. But banks are skeptical.
For many, home ownership has become an unattainable luxury. Mischa Folger wants to change this. He is the spiritual father of the idea of ”temporary home ownership”. The retired marketing consultant has been pursuing this idea for over 20 years. “Today’s property is based on Roman law and applies forever and ever,” says the 75-year-old. “Temporary property, on the other hand, is based on a specific phase of life and is financed for a limited period of 30 years.”
Purchase price of only one third
Because ownership is limited to 30 years, the purchase price is only around a third of a normal retail price, explains Mischa Folger. Because a property has a lifespan of about 100 years.
Young families in particular, who otherwise can no longer afford it, are able to become owners in this way.
A property is under construction in Baselbieter Reinach, the 21 apartments of which are now being sold as “temporary home ownership”. A 5-room apartment costs around 250,000 francs. That is why there is a new group of buyers. “In particular, young families who can no longer afford it otherwise are able to become owners,” says Mischa Folger.
The model is also suitable for people around retirement age. Their phase of life is expected to last around 30 years, like that of a family with children.
Legend:
Premiere in Berne
“Temporary home ownership” has so far only been used in this high-rise building in Bern. In 2004, 40 apartments were sold here for 30 years.
SRF
After 30 years, the investor buys the property back. This is regulated in a separate contract, where the repurchase price is also agreed in advance. This is significantly lower than the purchase price. The temporary owner does not benefit from an increase in value, but does not bear any risk if the price falls. And has a buyback guarantee.
The Basler Genossenschaft Wohnstadt likes “temporary home ownership” so much that they want to sell their new property in Reinach using this model. “On the one hand, we can offer residential property with lower entry hurdles and thus appeal to new groups,” says Managing Director Andreas Herbster.
New use possible after 30 years
“On the other hand, as an investor, we can rethink the property in 30 years, because future generations may need it differently. Maybe then you have to re-densify, add floors to the house or whatever.” This is almost impossible in a property with normal condominium ownership.
“Temporary home ownership” was only implemented once: in 2004 in Bern, after the renovation of a high-rise building. At that time, 40 apartments were sold for 30 years. A 3-room apartment cost 74,000 francs. In addition, there will be monthly fees throughout the period, which will then also be available in Reinach. Overall, the model is still cheaper than renting, says Mischa Folger.
Banks are skeptical
But there are also disadvantages. The banks, for example, have so far shown little interest. It is a risk for them, says Yvonne Seiler Zimmermann, finance professor at the Lucerne University of Applied Sciences and Arts: “A new clientele that is less solvent is being addressed. In addition, there is an additional expense, since a lot is new, with less volume at the same time, since the purchase prices are lower.»
Nevertheless, she is convinced that the advantages would outweigh the disadvantages. Mischa Folger and Andreas Herbster think so too. You have now also found banks that are willing to take part in the “Temporary Home Ownership” project in Reinach.
You can see more on the subject tonight at 9:50 p.m. on the show “10 vor 10” on SRF1.