End of imputed rental value in sight.

In an interview recently published on the ZKB blog, Ursina Kubli, Head of Property Research at Zürcher Kantonalbank, answered the most important questions about the possible abolition of the imputed rental value. She explains “who would benefit the most, what effects are to be expected on property prices and why homeowners are now likely to feel the effects of interest rate developments even more strongly”.

Kubli is convinced that “after many unsuccessful attempts … an abolition of the imputed rental value is more likely than ever before. On the two major political sticking points between the Council of States and the National Council – the abolition of the imputed rental value for second homes and the debt interest deduction options – the Economic Committee of the Council of States has agreed to the National Council’s proposal. Whether and when the imputed rental value will actually be abolished depends largely on whether a referendum is held. The likelihood of this happening has decreased with the current proposal.”