Property battle intensifies in holiday paradise: Rich Low Countries need to subsidize locals

Saratz’s actions are supported by the Federal Court. After a four-year legal battle, the highest court ruled in 2014 that the tax on unmanaged second homes was legal. However, no municipality has introduced such a tax to date. The closest was Silvaplana in the Engadine. The tax that had already been passed was canceled by the application for refund.

Now Pontresina is taking a new initiative. The project is not received very positively by the “second home owners”, also known as the second home owners in the valley. A “dialogue incident” was criticized. “We second home owners are not responsible for the misery in the first home market,” one voter said, according to the Engadiner Post. Another spoke of an “absolute lack of solidarity” approach. Pontresina moves into an offside position. Threats to boycott local businesses were also voiced.

St. St. Moritz GR mayor Christian Jott Jenny (45) was not surprised by this reaction. “A tax like this hits second homeowners at a critical point,” he says. This person is “unwelcome most of the time” and already pays too much tax. “We must find a logical and fair way to solve this problem,” says the politician and well-known entertainer. «All communities in the Upper Engadine are in a very good position financially. So that can’t be the problem.”

“Second home residents” are already paying much more

In fact, second home owners are already paying much more for their apartments than locals. Since the adoption of the second home initiative a decade ago, the price gap between first and second homes has widened significantly. Current examples offered for sale show how much of this: There are many developments regarding first and second homes in Flims GR. The cost of a 3.5-room apartment for local people in the Novita project is 1.09 million francs. The price of the second house, which is only two square meters larger, is 1.86 million francs. There is a 70 percent price difference. There are also big differences in the LanezziOne project. Second homes are around 40 percent more expensive than first homes.

Second homes may have a more attractive design or offer a slightly better view, but when calculated per square foot of living space, the differences are striking. Both Flims projects are marketed by Ginesta Immobilien. Sascha Ginesta estimates the price difference at 30 percent. The real estate expert actually expected the price gap to widen further. But this did not happen. This is because, among other things, first homes are often bought by the same customer.

“Those who move their residence to the mountains are often elderly or childless couples and therefore have the right to buy their first home.” Ginesta, who works as a partner and marketing manager in her cousin’s real estate company of the same name in Graubeğen, says that there are families who work part-time in the plains or who set up their home offices in the mountains. When locals buy their first homes in mountain tourism areas, it is because they want to sell their detached houses and move to a smaller or older apartment. If this development continues, there is a risk that mountain communities will turn into retirement communities.

So why don’t young families buy their first home, which is much cheaper than their second home? Because Ginesta says it’s still unaffordable for most. A person who buys an apartment for one million francs needs 200,000 francs of equity capital and over 160,000 francs of income to bear this burden. This is very difficult considering the wages in the mountains.

Is there concentration in the mountains?

Ginesta believes the housing problem cannot be solved by more home ownership. He also knows this problem from his political work as a local councilor in Vaz/Obervaz (Lenzerheide). Owning a home is no longer affordable for many young people in the region and is not always in demand. “What is missing are rental apartments. But you can’t get more rental units overnight; “These are long-term processes that begin with spatial planning.”

Municipalities can intervene in spatial planning by taking cities as an example. Like the city of Zurich, which set a goal of reaching one-third of nonprofit housing. Ginesta says mountain communities could impose such a quota for rental apartments of appropriate density in certain development areas.

He doesn’t believe in incentive taxes or higher taxes for second home owners. “This fills the already full coffers of the municipalities.” This means that no local family will have a roof over their heads. Holiday home owners will raise their hands and pay the additional tax.

Christian Jott Jenny: “Problems are homemade”

St. Christian Jott Jenny from St. Moritz doesn’t believe in a quick solution either. “In order to at least contribute to the solution, we are building on the last plots of land and even buying old hotels. It just takes too long. But flats are urgently needed.” To be honest, it must be admitted that “a large part of the problem is homemade”. “Local people sold their building plots and turned their first homes into second homes to sell to the highest bidder, not the Giovanoli family of four, whose father is still a ski instructor in the winter.”