Go Back   English Forum Switzerland > Help & tips > Other/general
Reply
 
Thread Tools Display Modes
  #241  
Old 11.03.2010, 13:31
BHBT's Avatar
Forum Veteran
 
Join Date: May 2005
Location: was Züri
Posts: 956
Groaned at 19 Times in 16 Posts
Thanked 892 Times in 413 Posts
BHBT has a reputation beyond reputeBHBT has a reputation beyond reputeBHBT has a reputation beyond reputeBHBT has a reputation beyond reputeBHBT has a reputation beyond repute
Re: [Ins and Outs] Buying Property in Switzerland

Buy to rent is an excellent investment. Just make sure you are prepared to own the property for a long time as the tax paid on profit made from sold properties which you've owned for a short time is high.

Oh and for a property you own and live in yourself you will have 'eigenmietwert' added to your tax return. Still makes it attractive to own but shouldn't be forgotten when doing your calculations.
Reply With Quote
  #242  
Old 30.03.2010, 19:38
Newbie
 
Join Date: Mar 2010
Location: Lugano
Posts: 8
Groaned at 0 Times in 0 Posts
Thanked 1 Time in 1 Post
luciana has no particular reputation at present
Re: [Ins and Outs] Buying Property in Switzerland

Thx everyone for the nice replies!

I went to Post Finance to ask about the mortgage details.

They also told me about the 20% "cash" and the possibility of using a third pillar account for making the amortization payment.

What was interesting to finally understand is what happens to my debt once the mortgage reaches its limit. As it was answered to me in this thread I can have the debt forever. However, the interest rate for the new mortgage will need to be evaluated once my first mortgage comes to an end. In fact your entire situation is once again evaluated. As the lady explained to me, in the worst case scenario I may have to sell the house to pay my debt (unlikely). Another interesting point she raised is that currently it is more interesting to buy a house then to rent because the interet rates are really low. This may not be true once I have to renew my mortgage.
Reply With Quote
  #243  
Old 30.03.2010, 23:18
AbFab's Avatar
Forum Legend
 
Join Date: Sep 2006
Location: Zürich
Posts: 6,504
Groaned at 304 Times in 201 Posts
Thanked 8,081 Times in 2,888 Posts
AbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond repute
Re: [Ins and Outs] Buying Property in Switzerland

Quote:
View Post
Another interesting point she raised is that currently it is more interesting to buy a house then to rent because the interet rates are really low. This may not be true once I have to renew my mortgage.
Yet another interesting point is that when the mortgage interest rate goes up, so do rents. When the rate comes down, do rents come down??

Mortgage interest is at its lowest level for well over 20 years in Switzerland - has any renter actually been informed of a rent reduction? I think not...
Reply With Quote
  #244  
Old 30.03.2010, 23:26
ticino's Avatar
Forum Veteran
 
Join Date: Mar 2008
Location: Zurich
Posts: 850
Groaned at 37 Times in 26 Posts
Thanked 377 Times in 216 Posts
ticino has earned some respectticino has earned some respect
Re: [Ins and Outs] Buying Property in Switzerland

Quote:
View Post
....has any renter actually been informed of a rent reduction? I think not...
Yes, I have. If your landlord doesn't lower the rent you have to insist. At least make sure that the rent won't be increased once interest rates go up again.
Reply With Quote
  #245  
Old 30.03.2010, 23:30
Castro's Avatar
à la mod
 
Join Date: Nov 2007
Location: Basel-Land of Smiles
Posts: 4,768
Groaned at 91 Times in 73 Posts
Thanked 12,703 Times in 4,142 Posts
Castro has a reputation beyond reputeCastro has a reputation beyond reputeCastro has a reputation beyond reputeCastro has a reputation beyond reputeCastro has a reputation beyond reputeCastro has a reputation beyond repute
Re: [Ins and Outs] Buying Property in Switzerland

In terms of buy to rent, I thought there were restrictions on us foreigners owning more than one property.. or at least tax penalties to dissuade us.
Reply With Quote
  #246  
Old 30.03.2010, 23:39
Forum Veteran
 
Join Date: Oct 2007
Location: Ticino & London
Posts: 1,943
Groaned at 170 Times in 93 Posts
Thanked 1,129 Times in 619 Posts
Cashboy has a reputation beyond reputeCashboy has a reputation beyond reputeCashboy has a reputation beyond reputeCashboy has a reputation beyond repute
Re: [Ins and Outs] Buying Property in Switzerland

Quote:
View Post
In terms of buy to rent, I thought there were restrictions on us foreigners owning more than one property.. or at least tax penalties to dissuade us.
I am under the impression that foreiggners can only buy in certain cantons and there is often a waiting list for foreigners to buy in a canton.
I also understand that a foreigner is restricted to a max of 200 square metres of accomodation.
Reply With Quote
  #247  
Old 26.05.2010, 18:27
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 11,472
Groaned at 246 Times in 157 Posts
Thanked 13,326 Times in 5,676 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: [Ins and Outs] Buying Property in Switzerland

Old thread, but I hope OP is still happy to answer posts. Given the economy is still going pear shaped, I'm thinking to put cash into real assets.

I'm familiar with the property buying process in the UK and was wondering what are the pitfalls/differences compared to the UK?

Transaction costs

For example, what are the transaction costs on buying and selling. My understanding that there will be a percentage to be paid by both buyer and seller to the Treuhand. Also, are there any transfer taxes or land registration taxes? What other ancilliary transaction costs e.g. legal?

On-going costs

What are the costs of owning which I don't (directly) see right now? Presumably some form of buildings insurance. Land taxes? I guess also wealth taxes, but anything else specific to home ownership?

I guess there's eigenvermietwert too. Anything else?

Disposal costs

I guess you get to pay a whole load of transaction costs again if you ever sell the property. Also, if you're lucky enough to make a gain on selling, you have some tax on the gain. Anything else?

The other point is if you're not able to sell, and you have to rent out the property, aside from paying tax if you manage to make a profit from this - is there anything else to be aware of?

I guess I would never want to be a landlord in France, but not sure what the situation is like in Switzerland e.g. when it comes to enforcement/eviction and also whether there are any hoops to jump through to become a landlord e.g. registration, legal hoops on deposits etc.
__________________
By replying to this post, you hereby grant Phil_MCR a royalty-free license to use, in any way, anything posted by you on the internet. If you do not accept, stop using EF and delete your account.
Reply With Quote
  #248  
Old 26.05.2010, 21:00
eng_ch's Avatar
Forum Veteran
 
Join Date: Nov 2005
Location: Richterswil
Posts: 1,275
Groaned at 4 Times in 4 Posts
Thanked 1,041 Times in 570 Posts
eng_ch has a reputation beyond reputeeng_ch has a reputation beyond reputeeng_ch has a reputation beyond reputeeng_ch has a reputation beyond reputeeng_ch has a reputation beyond repute
Re: [Ins and Outs] Buying Property in Switzerland

Quote:
View Post
In terms of buy to rent, I thought there were restrictions on us foreigners owning more than one property.. or at least tax penalties to dissuade us.
Quote:
View Post
I am under the impression that foreiggners can only buy in certain cantons and there is often a waiting list for foreigners to buy in a canton.
I also understand that a foreigner is restricted to a max of 200 square metres of accomodation.
AIUI if you are an EU citizen with a B permit and/or C permit holder, you have the same property purchase rights as a Swiss citizen.
Reply With Quote
  #249  
Old 27.05.2010, 05:48
Forum Veteran
 
Join Date: Oct 2007
Location: Ticino & London
Posts: 1,943
Groaned at 170 Times in 93 Posts
Thanked 1,129 Times in 619 Posts
Cashboy has a reputation beyond reputeCashboy has a reputation beyond reputeCashboy has a reputation beyond reputeCashboy has a reputation beyond repute
Re: [Ins and Outs] Buying Property in Switzerland

Quote:
View Post
Given the economy is still going pear shaped, I'm thinking to put cash into real assets.
I would say that (as I have been posting on this forum) that there are still many more repercussions in the financial markets/banks in the world in coming months and years.
I would not invest in property anywhere in the world at the moment. I still think property has to fall further.
However saying that; Switzerland in my opinion would be the least effected.
The reason that I would concider buying property in Switzerland would be:
(1) Not sure that money in banks is safe.
(2) I want the property for myself and family to live in for at least 10 years.
(3) Better than having the money tied up in Swiss Pension scheme if you can take it out.
__________________
I do not have friends..........I have contingent liabilities
Reply With Quote
  #250  
Old 27.05.2010, 09:15
Forum Legend
 
Join Date: Feb 2008
Location: Near Zug
Posts: 3,412
Groaned at 18 Times in 16 Posts
Thanked 1,943 Times in 1,165 Posts
CH_Me has a reputation beyond reputeCH_Me has a reputation beyond reputeCH_Me has a reputation beyond reputeCH_Me has a reputation beyond repute
Re: [Ins and Outs] Buying Property in Switzerland

Quote:
View Post
On-going costs

What are the costs of owning which I don't (directly) see right now? Presumably some form of buildings insurance. Land taxes? I guess also wealth taxes, but anything else specific to home ownership?

I guess there's eigenvermietwert too. Anything else?
Maintenance costs are the biggest cost for us. Replacing rotten window 3k, stove top 2k+, dishwasher 2.6k, sun shade maintenance a few thousand over 5 years and now 3.6k to replace just 4 blinds. Appliances here are expensive.
Reply With Quote
  #251  
Old 27.05.2010, 10:50
Forum Veteran
 
Join Date: Oct 2007
Location: Ticino & London
Posts: 1,943
Groaned at 170 Times in 93 Posts
Thanked 1,129 Times in 619 Posts
Cashboy has a reputation beyond reputeCashboy has a reputation beyond reputeCashboy has a reputation beyond reputeCashboy has a reputation beyond repute
Re: [Ins and Outs] Buying Property in Switzerland

Quote:
View Post
Maintenance costs are the biggest cost for us. Replacing rotten window 3k, stove top 2k+, dishwasher 2.6k, sun shade maintenance a few thousand over 5 years and now 3.6k to replace just 4 blinds. Appliances here are expensive.
That is so so true.

If you are good at DIY; then buying property is OK.
But you tenents out there think us Swiss landlords are having it away ignorant of the maintenance costs for even simple things that most landlords have to pay as they generally always pay "professionals" to do the jobs.
Reply With Quote
  #252  
Old 29.07.2010, 20:10
Newbie
 
Join Date: Feb 2008
Location: Geneva
Posts: 4
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
MalloryCat has no particular reputation at present
Buying a Ski Apartment ..... or as it now seems .. Not buying a ski apartment

Hi,

I am looking at buying a ski apartment as an investment; to rent out, for my family to use at quiet times and to use more and more as retirement approaches.

I currently rent in Geneva; I have been there for 5 years, so was hoping that the apartment would class as my prime residence so that I could pledge the funds form my pension pillar 2. [I don’t own any other property in Switzerland]

I understand that there might be a discussion to be had over where my taxes are paid, that’s OK I’m not moving for tax reasons and will be ‘happy’ to pay my taxes wherever I am legally obliged to.

My, question … I have been told, by a friend, that, as the daily commute from the ski resorts isn’t feasible I can’t declare the apartment as my prime residence and therefore cant pledge my pillar 2.

Does anyone know if this is true? If it is … are there any solutions?

Regards,

MC
Reply With Quote
  #253  
Old 10.01.2011, 21:33
AnAustralian's Avatar
Forum Veteran
 
Join Date: Apr 2007
Location: Zurich, Switzerland
Posts: 1,201
Groaned at 6 Times in 4 Posts
Thanked 557 Times in 315 Posts
Blog Entries: 3
AnAustralian is considered knowledgeableAnAustralian is considered knowledgeableAnAustralian is considered knowledgeable
Re: [Ins and Outs] Buying Property in Switzerland

Quote:
View Post
Old thread, but I hope OP is still happy to answer posts. Given the economy is still going pear shaped, I'm thinking to put cash into real assets.

I'm familiar with the property buying process in the UK and was wondering what are the pitfalls/differences compared to the UK?

Transaction costs

For example, what are the transaction costs on buying and selling. My understanding that there will be a percentage to be paid by both buyer and seller to the Treuhand. Also, are there any transfer taxes or land registration taxes? What other ancilliary transaction costs e.g. legal?

On-going costs

What are the costs of owning which I don't (directly) see right now? Presumably some form of buildings insurance. Land taxes? I guess also wealth taxes, but anything else specific to home ownership?

I guess there's eigenvermietwert too. Anything else?

Disposal costs

I guess you get to pay a whole load of transaction costs again if you ever sell the property. Also, if you're lucky enough to make a gain on selling, you have some tax on the gain. Anything else?

The other point is if you're not able to sell, and you have to rent out the property, aside from paying tax if you manage to make a profit from this - is there anything else to be aware of?

I guess I would never want to be a landlord in France, but not sure what the situation is like in Switzerland e.g. when it comes to enforcement/eviction and also whether there are any hoops to jump through to become a landlord e.g. registration, legal hoops on deposits etc.
I am interesting in knowing what ongoing tax costs are once you own the property outright, in the ZH canton. Anyone got the answer how it works here?
Reply With Quote
  #254  
Old 10.01.2011, 21:41
Forum Legend
 
Join Date: Sep 2010
Location: Neuchatel
Posts: 19,355
Groaned at 368 Times in 275 Posts
Thanked 22,366 Times in 10,062 Posts
Odile has a reputation beyond reputeOdile has a reputation beyond reputeOdile has a reputation beyond reputeOdile has a reputation beyond reputeOdile has a reputation beyond reputeOdile has a reputation beyond repute
Re: [Ins and Outs] Buying Property in Switzerland

Remember houses in CH don't go up in price very much- not like they did in the UK for the past 30 years!! However for those who intend to return to the UK at some point - you could make a lot of money on the exchange rate! Would be about 40% up for us!
Reply With Quote
  #255  
Old 10.01.2011, 21:48
AnAustralian's Avatar
Forum Veteran
 
Join Date: Apr 2007
Location: Zurich, Switzerland
Posts: 1,201
Groaned at 6 Times in 4 Posts
Thanked 557 Times in 315 Posts
Blog Entries: 3
AnAustralian is considered knowledgeableAnAustralian is considered knowledgeableAnAustralian is considered knowledgeable
Re: [Ins and Outs] Buying Property in Switzerland

Quote:
View Post
Remember houses in CH don't go up in price very much- not like they did in the UK for the past 30 years!! However for those who intend to return to the UK at some point - you could make a lot of money on the exchange rate! Would be about 40% up for us!
To take advantage of that you would have had to have bought prior to the pound going down.
Reply With Quote
  #256  
Old 10.01.2011, 23:18
Tom1234's Avatar
Forum Legend
 
Join Date: Jan 2007
Location: Kanton Luzern
Posts: 10,049
Groaned at 267 Times in 211 Posts
Thanked 14,167 Times in 5,749 Posts
Tom1234 has a reputation beyond reputeTom1234 has a reputation beyond reputeTom1234 has a reputation beyond reputeTom1234 has a reputation beyond reputeTom1234 has a reputation beyond reputeTom1234 has a reputation beyond repute
Re: [Ins and Outs] Buying Property in Switzerland

Quote:
View Post
To take advantage of that you would have had to have bought prior to the pound going down.
Lucky for some then
Reply With Quote
  #257  
Old 10.01.2011, 23:48
Forum Legend
 
Join Date: Sep 2010
Location: Neuchatel
Posts: 19,355
Groaned at 368 Times in 275 Posts
Thanked 22,366 Times in 10,062 Posts
Odile has a reputation beyond reputeOdile has a reputation beyond reputeOdile has a reputation beyond reputeOdile has a reputation beyond reputeOdile has a reputation beyond reputeOdile has a reputation beyond repute
Re: [Ins and Outs] Buying Property in Switzerland

Yep we did. But not very funny now as we are here on UK pensions in Sterling.
Reply With Quote
  #258  
Old 11.01.2011, 00:32
miniMia's Avatar
Forum Legend
 
Join Date: Apr 2007
Location: romandie
Posts: 8,848
Groaned at 85 Times in 76 Posts
Thanked 7,391 Times in 3,729 Posts
miniMia has a reputation beyond reputeminiMia has a reputation beyond reputeminiMia has a reputation beyond reputeminiMia has a reputation beyond reputeminiMia has a reputation beyond reputeminiMia has a reputation beyond repute
Re: Buying a Ski Apartment ..... or as it now seems .. Not buying a ski apartment

Quote:
View Post
Hi,

I am looking at buying a ski apartment as an investment; to rent out, for my family to use at quiet times and to use more and more as retirement approaches.

I currently rent in Geneva; I have been there for 5 years, so was hoping that the apartment would class as my prime residence so that I could pledge the funds form my pension pillar 2. [I don’t own any other property in Switzerland]

I understand that there might be a discussion to be had over where my taxes are paid, that’s OK I’m not moving for tax reasons and will be ‘happy’ to pay my taxes wherever I am legally obliged to.

My, question … I have been told, by a friend, that, as the daily commute from the ski resorts isn’t feasible I can’t declare the apartment as my prime residence and therefore cant pledge my pillar 2.

Does anyone know if this is true? If it is … are there any solutions?

Regards,

MC
I can't tell you about using a ski chalet as your primary residence.

But what I can say is that you can't pledge your retirement account for property that you rent out or use as a holiday home/second residence and getting a mortgage on a rental property usually means a substantial down payment of 50% or more depending on a whole bunch of things.

Solution: Cash down payment.
Reply With Quote
  #259  
Old 05.04.2016, 00:38
Junior Member
 
Join Date: May 2012
Location: Bern
Posts: 45
Groaned at 0 Times in 0 Posts
Thanked 7 Times in 6 Posts
Nukles85 has no particular reputation at present
Re: [Ins and Outs] Buying Property in Switzerland

I was wondering if you guys thought that after many years, buying today property is more worth than renting.
Reply With Quote
  #260  
Old 05.04.2016, 01:08
3Wishes's Avatar
Moderately Amused
 
Join Date: Jul 2010
Location: Bern area
Posts: 6,522
Groaned at 43 Times in 39 Posts
Thanked 9,156 Times in 4,356 Posts
3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute3Wishes has a reputation beyond repute
Re: [Ins and Outs] Buying Property in Switzerland

Quote:
View Post
I was wondering if you guys thought that after many years, buying today property is more worth than renting.
Have a read of these threads for some opinions:

What's your expats opinion on buying vs renting

Buying a house since I think paying for a rent is a waste of money

Buying v. renting
Reply With Quote
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off



All times are GMT +2. The time now is 18:22.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2016, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0