Thread: House buying
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Old 01.04.2008, 22:35
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Re: House buying

Another expense is a Schuldbrief (literally a letter of debt). When you obtain a mortgage, the lender has the loan guaranteed with a hold or lien on the property in the form of this document. It is quite a simple affair, but costs 1 per 1000 for the Notariat and 2.5 per 1000 for the Grundbuchamt (land registry).

So this will cost about CHF1750 plus VAT (Canton Zurich) to guarantee a loan of CHF 500,000.

TIP: these Schuldbriefs are left on a property's records even when paid off and can be reused and so you avoid this fee (or some of it).

BUT I would recommend not buying in Switzerland if you stay is anything less than 10 years. You will need 1 -2 years to even find somewhere and you should be aware of Grundstuckgewinesteuer (tax on profit on sale) [search these forums]. This can be 40% of a profit that might only be 10 - 20 over 10 years. It is only avoided by reinvesting the same or more in a property in Switzerland...
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