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Crowdhouse attracts investors who earn high profits when they purchase shares in an investment property. A thorn in the side of SP National Assembly Member Jacqueline Badran (62). And it’s been like this for a long time. The board member of the tenants’ association tipped his hat when he learned of Blick’s investigation into the tenant unrest in Huttwil BE. «They are complete fraudsters. Crowdhouse advertises up to 7 percent return on equity on its homepage. This is illegal!” says Badran.
Following the new increase in the reference interest rate on December 1, a maximum net return of 3.75 percent is allowed on rental apartments. An upper limit set by the Federal Court because landlords generally have more influence in the housing market. Especially in the centers, demand is much higher than supply. The purpose of this limit is to prevent providers from setting only market rents. “In Switzerland we have cost rents plus allowed net return. The Crowdhouse example shows once again that in many cases the returns are very high,” the politician emphasizes.
Here’s what Crowdhouse had to say about criticism
Crowdhouse contradicts Badran’s claims. “The federal court’s calculation of the allowable net return differs materially from the return on equity reported by us,” the property manager writes in the request. You can’t compare this. The company also points out exceptions to the refund rule. However, these are only used for existing long-term leases.
How exactly does the calculation in Crowdhouse differ from the maximum allowable return? The real estate company does not want to disclose this when asked.
For the SP National Assembly Member, the situation is clear: “The Crowdhouse business model should be banned.” The question of the legality of six percent advertising returns through Crowdhouse was raised in parliament years ago, including by Badran.
Response of the Federal Council: The application with a refund, which is not allowed under the tenancy law, is unfair. In order for a lease to be considered abuse, this situation must first be declared by the responsible authorities.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
