Thread: House buying
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Old 12.05.2008, 14:30
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Moejoe Moejoe is offline
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Re: House buying

Hello,

My general query is this: we are planning on moving. We have visited Switzerland and examined the housing options without going into details (ie. we looked at houses & apartments, but didnít speak with banks etc.).

It looks like it will cost about CHF3000 per month to rent the sort of house we want, but only about 1500 per month to buy one and pay it off (based on CHF550k house, with a 20% deposit), given the relatively low interest rates.

On a purely cash flow basis, it seems that buying is superior to renting. I realize this is probably naÔve, so, aside from the practical renting versus buying issues, and assuming preservation of capital, can someone shed light on the following:
  • Transaction costs for buying (eg. Ďstamp-dutiesí)
  • Other hidden charges
  • Establishment fees for mortgages etc.
  • Capital gains taxes on future sale assuming you lived in it for at least 12mths (if you hang on to it without living in it and rent it out does this change things).
Although I have looked elsewhere on the forum, there doesnít seem to be particularly thorough or well referenced posts. Can anyone help (happy to be redirected to another link).

Cheers

Moe.
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