Illiquid Investments

Real Value = Construction value - depreciation + value of land

economic age:

age (building shell)
+ age (building envelope: roof, windows etc.)
+ age (outfitting of the building: paint, parquet flooring) * 2
+ age (building services: heating, etc.) * 2
sum/6 = economic age

• −  Land ownership

• −  Ground lease ownership (Baurecht) represents a long-term easement recorded in the land registry that entitles its

  beneficiary to erect and own constructions on the base plot. It is a form of ownership frequently used for strategic

  development zones, such as industrial zones in Switzerland’s main cities.

• −  Condominium-principled ownership (Eigentümergemeinschaft) represents a form of land ownership by which one

  right of ownership is owned by a community of owners.

Most common ownership in Switzerland:
 

• −  Sole ownership

• −  Co-ownership (meist Stockwerkeigentum); predominant form is the condominium-principled co-ownership

  • −  Main characteristic: different persons own separate units in a common property.

  • −  The co-owners have the exclusive right to make sole use of specific parts of a building. Each condominium owner can manage,

    use and design the structure of their units as they wish but must not obstruct any other condominium owners in the exercise of

    their own rights or damage the common parts of the property.

  • −  Importantly, each unit has its own folio in the land register and may be sold separately without the consent of the other.