Thread: House buying
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Old 24.05.2006, 15:02
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Re: House buying

Hi,

I just signed the contract for a second hand house today, so I can give you the low down as I see it.

Firstly, I would not expect it to be cheaper than renting - maybe a little. The rentable value of a house is added to your salary as a penalty for owning a house. This can be offset by the interest payments from the mortage. This system is due to be phased out over the next (?? 150 probably) years. Add to this all the maintence issues you usually get with a house......

Secondly, for us it was quite an issue to even find a house (over 1 year). Those that we found on the internet were not available to us, as we are not Swiss - they will preferntially sell to a swiss person than anyone else. So don't expect to get one quick! It's not just about the money here!!!

Thirdly, having said that above, now that we've found one, the whole sale has gone through in a matter of 10 days - quite incredible!

Now to the nitty gritty.

To buy the house, we first had to pay a reservation. This was 30,000 CHF. This alone did not guarentee the house, but legally prevented the owner from showing the house and otherwise promoting its sale to anyone else.

After this, as we have done today, we paid the deposit. At this stage the house is ours, unless some member of the sale process dies. The deposit we paid is 10%, 110,000CHF in this case. From this money, the current owner must pay taxes to the Geimende. In order to get to this stage we had to have a paper signed by a bank that said we had the finance to buy the house, and a guarentee of payment for the deposit.

When we get the key on the 17th July, we must transfer the rest of the funds from the bank. I should say at this point, we have not arranged the mortgage, and we have 2 banks battling each other for our business ;o) .

After the sale, we will then have the fees from the notariat. This is 0.35%, i.e. less than half of one percent, in this case say 4,000CHF. It is usual for the buyer and seller to split this 50/50 and this is what we are doing in this case.

So, the overall cost is the cost of the sale, 1.1Mil + 2,000 notariat fees. The seller has more fees, the aforementioned taxes to gemeinde , but also the commision to the sales agent.

Finally, we also have to have the electricy supply inspected by November (at our expense). This (at least in Embrach) must be done each 5 years, or after a change of ownership (how convienient!)

That's all for now, but I am happy to discuss any other aspects that may be of interest.
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