Its a question I'm asking myself right now!

I am selling my house in the UK and thinking of using some of the money to put down a deposit on a place over here. It seems if I put down 20% as the deposit then my monthly payments would be equivalent to what I'm paying in rent so it seems logical to do that. But what I'm having trouble to understand is the mortgage system.

I pay 2 different mortgages? And 1 is a fixed term and 1 isn't? Maybe someone can explain it to me!

Does buying somewhere make sense if potentially I will only be here for a few years?

Cheers!

http://www.ubs.com/1/e/ubs_ch/private/mortgage.html

Hello!
here on that link above you can find everything about mortages.
The good thing is that most selling properties in CH are freehold. You have to pay some extra taxes if you sell your flat/house before 5 years time. They made this rule to avoid speculation and keep the market in balance.(for details ask the "Steueramt" at your Wohngemeinde).

Hope that helps... Have a nice weekend!

Hi mmd,

I was in a very similar position, and went through the same thought process. Read the some of the other threads (particularly the advice from Richard here: http://www.englishforum.ch/other-gen...itzerland.html)

I decided to give it a year or two of renting while I can have a look around. It has been hard enough ensuring that I find a good flat, and even this has been difficult to get somewhere just right.

The last thing I would want as well is to sink money from a property in the UK into a house here only to decide to go back to the UK or some where else in a few years. Housing isn't a particularly sound investment here unless you can afford for your money to sit there for more than a few years. I wouldn't bank on being able to sell up quickly either. There aren't that many places for sale, but then there are even less people buying.

As for the two mortgages, it would be better for someone who has actually bought a place to answer. Or you could just search the other threads...

With the way UK property vlues have risen over the last 30 years, there's no way I'd sell a place in the UK. I bought a semi there in 1994, lived in it for 3 years and now it's rented out. In about 6 years the mortgage will be fully paid off by a succession of renters and it's qradrupled in value.

Property values in Switzerland stay relatively flat or rise by very small amounts. OK, there are other reasons to buy something of one's own, but I would consider the rent or buy question very carefully if I were you.

The "two mortgages" is not a fixed thing - just very common. As far as I can see it depends on how much you borrow. Two mortgages also offer more flexibility on rates and when each must be repaid.

By the way, a few Cantons want only 10% deposits. Schwyz is one - and that's where we bought, luckily! Low taxes and low deposits!

Shop around too - most Swiss don't - but a friend of mine buying near Bern did so at my suggestion and saved a lot. Most people just ask their own bank, but the Kantonalbanks often have very good deals, as does Migrosbank. Comparis also keeps an eye on mortgage rates.

RS

Great link thanks alot!

Hey,

I have one piece of advice to offer:

Don't buy anything until you have read the Protokol and found out how much money is in the Fund. These two things tell you what is going on with the whole appartment block, if there are any major rennovations in the pipe line and how much collective money there is to pay for such things. Try to get ahold of 5 years woth of Protokols, this way you get to know a little of the places history too - are there problem makers etc, etc.

Do not even consider buying a flat until you have thoroughly read through these documents.

Patrick

Absolutely nothing to do with the Cantons, it's the bank that decides and the usual amount of deposit is 20%.