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‘Impossible’: Why Switzerland’s one franc homes are too good to be true

This week, a municipality in the Swiss canton of Ticino offered homes to buyers worldwide for one franc. However, a former buyer says the offers are too good to be true.

Published: 7 January 2022 14:24 CET
Updated: 9 January 2022 05:16 CET
A Swiss flag against a stone house somewhere in the Swiss mountains
Switzerland's stone houses often require a great deal more work than previously thought. Image: Pixabay

Early in 2022, southern Swiss town of Gambarogno, located on the shores of Lake Maggiore, became the latest village to offer houses for one franc.

The stone houses, known in Italian as rustici, are situated on the hillside with a view of the lake. 

As with previous one-franc offers, the news – along with pictures of the Ticino countryside and the lake itself – spread across the globe, with people inside and outside of Switzerland letting themselves dream. 

However, as we wrote in our article, the offer comes with a catch – with buyers required to make a significant investment in the properties along with speaking Italian and having their plans approved by the local parliament. 

Gambarogno: The latest Swiss village to sell houses for one franc

One former buyer got in touch with Swiss news outlet 20 Minutes to say that the situation was even tougher than advertised, telling the paper that it would be close to “impossible” to turn the dilapidated shacks into comfortable holiday homes. 

Images of the homes can be seen here. 

‘Impossible’

The former buyer, who wanted to remain nameless, said once they received the paperwork on the home, they saw how much work was needed – and how difficult it would be to carry it out. 

“We were interested in a rustico in Gambarogno two years ago and received the documentation for the project,” she said. 

She said contrary to what the council claims, the huts do not have views of the lake, while none of them have access to electricity or running water. 

“They have neither roofs nor windows, nor electricity or running water,” while regulations prevent the installation of a solar system. 

“So getting electricity up there is simply impossible at the moment.”

“The problem with the water could only be solved with a lot of effort. But there is still no sewer system.

“You could only heat (the house) with wood. “

The buyer said that the homes needed too much work and were too remote for even the most enthusiastic handyman or woman. 

“The rustici are in fact nothing more than ruins”. 

“There is no parking space in the nearest village of Indemini, and you have to walk an hour from there. How is that supposed to work with the shopping or with the disposal of waste?”

Building materials “can only be transported by helicopter and that costs 400 francs an hour” she said. 

The buyer said the only way the council could realistically regenerate the area was if the houses were purchased by a foundation or organisation which could afford the costs of setting them up as a “holiday camp” or something similar. 

Are you interested in the one franc homes and have you tried to get in touch with Swiss authorities? We’d love to hear from you: [email protected]. 

Contact details for the Comune di Gambarogno can be found here. 

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PROPERTY

Why renters in Switzerland still struggle to buy an apartment

Prices of properties in Switzerland are out of reach of most residents and they may continue to be so in the near future.

Published: 12 April 2024 10:47 CEST
Why renters in Switzerland still struggle to buy an apartment

It is a well known fact that more people in Switzerland are tenants than homeowners, and it all comes down to money. 

This is confirmed by yer another study, by UBS bank, which found that fewer and fewer households can still afford to buy a house or apartment. 

While 20 years ago, 60 percent of households in Switzerland could still afford to purchase property, today the percentage of residents owning property valued at 880,000 francs or more dropped to merely 15 percent.

READ ALSO: Why do so many in Switzerland rent rather than buy a home

In order to afford cheaper properties, people have been moving from cities to the suburbs, where homes had typically been less expensive, but the growing demand in those regions has increased the prices there as well.

And short-term outlook is not favourable either: UBS experts expect the prices of apartments to increase by another 1.5 percent this year, and 1 percent for single-family houses.

This may not seem like much, but if a property costs 1 million francs or more (a usual price in major cities), the 1 or 1.5 percent adds up to a lot of money.

Why are properties getting more expensive in Switzerland?

There are number of reasons for this phenomenon, including scarcity of land for new constructions, the steadily high demand, and inflation, among other reasons.

How much do you need to earn to afford a property these days?

READ ALSO: Can foreign nationals in Switzerland get a mortgage? 

As prices vary from one region, and even from one town to another, the income you’d need depends on where you live.

In Geneva or Zurich areas, for instance, where housing is notoriously expensive, a household would need a gross income of 300,000 francs a year to buy a home or an apartment, though in traditionally cheaper regions like Jura, Neuchâtel, Ticino, or some areas of central Switzerland, an annual salary of between 100,000 and 200,000 francs may suffice.

What is the forecast for residential properties the future?

READ ALSO: Why living in Switzerland’s smaller towns beats the bigger cities

More price increases are expected from 2025.

This hike would be driven by the economic recovery as well as the general housing shortage.

UBS pointed out that as long as there are enough potential buyers, prices will continue to rise.

And it is a fact that the demand for houses and apartments is still there, despite the cost.

On the one hand, that is because an increasing number of wealthy people from abroad are settling in Switzerland. 

And on the other, because the income of people belonging to the upper class has increased.

READ ALSO: Where in Switzerland property prices are rising the fastest

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