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Old 25.02.2015, 04:15
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% to budget for dwelling?

In the US, there is a fairly widely rule of thumb: total debt payment per month should not exceed 36% of gross income.

If you have 0 debt, then you could assume 36% debt as mortgage debt. And this (plus downpayment) would determine "how much house you can afford."

In CH, (1) is there any such guideline?

(2) if renting, I wonder what a reasonable % of gross should be budgeted for apartment/house.

Thanks in advance.
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Old 25.02.2015, 05:23
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Re: % to budget for dwelling?

To rent an apartment most landlords seem to require that your take home income be at least three times your rent (in other words, your rent should not exceed 30% of your gross income).

There are many helpful posts on here that discuss renting.
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Old 25.02.2015, 10:57
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Re: % to budget for dwelling?

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To rent an apartment most landlords seem to require that your take home income be at least three times your rent (in other words, your rent should not exceed 30% of your gross income).
Take home income = NET income
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Old 25.02.2015, 11:03
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Re: % to budget for dwelling?

It is entirely Kanton related. For example, in Aargau the calculation involves bodyweight in carrots, number of daughters and pairs of white socks.

In Kanton Zurich people tend to go to the Credit Suisse website and look at the mortgage calculator

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Old 25.02.2015, 11:12
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Re: % to budget for dwelling?

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Take home income = NET income
I don't get to take much of mine home. The bank takes most of it and gives it to other people. Other times I take it out of the ATM and give it to a lady in a bar.
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Old 25.02.2015, 11:21
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Re: % to budget for dwelling?

the bank takes my money for free and lends it to other people for extortionate rates.... actually.
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Old 25.02.2015, 11:21
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Re: % to budget for dwelling?

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I don't get to take much of mine home. The bank takes most of it and gives it to other people. Other times I take it out of the ATM and give it to a lady in a bar.
Did you consider clarifying that? Or are you admitting to picking up hookers in bars?
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Old 25.02.2015, 11:25
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Re: % to budget for dwelling?

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In the US, there is a fairly widely rule of thumb: total debt payment per month should not exceed 36% of gross income.

If you have 0 debt, then you could assume 36% debt as mortgage debt. And this (plus downpayment) would determine "how much house you can afford."

In CH, (1) is there any such guideline?

(2) if renting, I wonder what a reasonable % of gross should be budgeted for apartment/house.

Thanks in advance.
Sorry it is only in German or French, but this page gives you some typical budget suggestions: http://www.budgetberatung.ch/Familienbudget.75.0.html
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Old 25.02.2015, 11:53
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Re: % to budget for dwelling?

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To rent an apartment most landlords seem to require that your take home income be at least three times your rent (in other words, your rent should not exceed 30% of your gross income).

There are many helpful posts on here that discuss renting.
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Take home income = NET income
Management companies usually stick to the rules that the rent isn't more than 30% of GROSS income and about 25% of NET income.

These are only guidelines. Some landlords will rent to you even the rent is more than that and some will not rent to you if your rent is too low either. IE, if you are making 10,000 per month and want an apartment for 1,000 you might struggle to get is as they will give it to someone who really can't afford more rather than you would could afford much more.

In the Swiss rental market.... It depends.
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Old 25.02.2015, 11:56
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Re: % to budget for dwelling?

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I don't get to take much of mine home. The bank takes most of it and gives it to other people. Other times I take it out of the ATM and give it to a lady in a bar.
Not the lady that stirs her champaigne I assume?
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Old 25.02.2015, 11:59
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Re: % to budget for dwelling?

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In the US, there is a fairly widely rule of thumb: total debt payment per month should not exceed 36% of gross income.

If you have 0 debt, then you could assume 36% debt as mortgage debt. And this (plus downpayment) would determine "how much house you can afford."

In CH, (1) is there any such guideline?

(2) if renting, I wonder what a reasonable % of gross should be budgeted for apartment/house.

Thanks in advance.
In Switzerland they often say that as a rule of thumb, one third of your net income should go for rent.

If you own, you should not equate rental with mortgage payments as you also need to budget for repairs and maintenance (included in the rent). This is about 1 to 2 percent of the value of the property per annum.
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Old 25.02.2015, 12:02
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Re: % to budget for dwelling?

The banks are trying to make it more difficult to get a mortgage at the moment, but some will be more flexible than others - we found Raiffeisen to be good. I think at present they are looking for 20-30% downpayment of the asking price. Not sure what percentage of income they will allow but they make the calculation with approx. 5% as interest rate
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Old 25.02.2015, 12:26
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Re: % to budget for dwelling?

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Management companies usually stick to the rules that the rent isn't more than 30% of GROSS income and about 25% of NET income.
I assume you mean to reverse the words in caps. ;-)
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Old 25.02.2015, 12:28
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Re: % to budget for dwelling?

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I assume you mean to reverse the words in caps. ;-)
How does that help

Management companies usually stick to the rules that the rent isn't more than 30% of SSORG income and about 25% of TEN income.

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Old 25.02.2015, 12:45
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Re: % to budget for dwelling?

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I assume you mean to reverse the words in caps. ;-)
Oh for pete's sake! I don't remember any more! Isn't it a rule that if you try to correct something you'll mess it up too?

30% of the salary before any deductions and 25% of the salary you get in your pocket after obligatory deductions (excluding tax).

You decide which is which.
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Old 25.02.2015, 13:19
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Re: % to budget for dwelling?

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Oh for pete's sake! I don't remember any more! Isn't it a rule that if you try to correct something you'll mess it up too?

30% of the salary before any deductions and 25% of the salary you get in your pocket after obligatory deductions (excluding tax).

You decide which is which.
33% of GROSS income - without any deduction is what CS uses based on 5% interest

https://www.credit-suisse.com/ch/en/...n/rechner.html

EG 1m house with 200k deposit = 4944 total monthly cost - requiring gross income of 14,834chf

Which is more than that minimum ex-pat salary of 120k per year
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Old 25.02.2015, 13:43
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Re: % to budget for dwelling?

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Oh for pete's sake! I don't remember any more! Isn't it a rule that if you try to correct something you'll mess it up too?

30% of the salary before any deductions and 25% of the salary you get in your pocket after obligatory deductions (excluding tax).

You decide which is which.
a RENT of 2000chf is 30% of a 6000chf GROSS paycheck. [mine is thankfully 'grosser' than that ]

After deductions, NET is 5000chf, and RENT of 2000chf is 40% of such.

A fixed cost will always be a higher percentage of NET amounts.

An accountant could explain this better, but then none of us would get it. Fricken Bohnenzähler.

I pass the gross rule, but not the net rule, which means we're moving Sept 1st, ..., just not sure which country at the moment... :P
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Old 25.02.2015, 14:02
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Re: % to budget for dwelling?

Where I am now living is too cheap. Will I be obliged to move if the Kanton finds out?
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Old 25.02.2015, 14:03
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Re: % to budget for dwelling?

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Where I am now living is too cheap. Will I be obliged to move if the Kanton finds out?
Don't you know it's Unswiss to pay less than you should.

Do try and integrate somewhat
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Old 25.02.2015, 14:08
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Re: % to budget for dwelling?

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a RENT of 2000chf is 30% of a 6000chf GROSS paycheck. [mine is thankfully 'grosser' than that ]
Oh dear, oh dear

I tell you what - you give me 2,000chf and in return I'll give you 30% of 6,000chf
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