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  #101  
Old 14.01.2017, 21:01
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Re: Mortgage tips and risks

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So if currently the flats are too expensive, what are the alternatives? Currently my friend has a savings account with 0,05% interest rate. I was looking at ETFs which would look least scary to her.
You can get 0.5% with the ZH tax office currently. Better than a bank and any swiss bonds.

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Oh, I meant: buy to live in. Not buy-to-let. And only apartments 4.5 rooms or above.
Valuation based on potential income yield is universally applicable, whether you'll let it out and live in yourself.
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  #102  
Old 14.01.2017, 21:10
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Re: Mortgage tips and risks

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You can get 0.5% with the ZH tax office currently. Better than a bank.
Yep, but you can't "invest" much more than what you expect your taxes due will amount to.
The rest they'll just return and give you a lecture.

It was great while they offered more (wasn't too long ago).
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  #103  
Old 14.01.2017, 21:15
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Re: Mortgage tips and risks

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Yep, but you can't "invest" much more than what you expect your taxes due will amount to.
The rest they'll just return and give you a lecture.

It was great while they offered more (wasn't too long ago).
Keep paying them & ignore any lecture, that can't tell you what your future liability will be, they can only guess. Their opinion & best guess is irrelevant until your tax return is considered legally binding. This is usually at least 9 months after submission.
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  #104  
Old 14.01.2017, 21:23
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Re: Mortgage tips and risks

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Keep paying them & ignore any lecture, that can't tell you what your future liability will be, they can only guess. Their opinion & best guess is irrelevant until your tax return is considered legally binding. This is usually at least 9 months after submission.
I've already asked them (a while ago, while the rate was more attractive).

They'd (my educated guess) just cry "abuse" and hand me a fine that exceeds the interest earned.
Maybe they do, maybe they don't - I live in a small village and until I decide whether I want the citizenship or not, I'm not going to rock the boat like that ;-)
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  #105  
Old 14.01.2017, 21:35
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Re: Mortgage tips and risks

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I've already asked them (a while ago, while the rate was more attractive).

They'd (my educated guess) just cry "abuse" and hand me a fine that exceeds the interest earned.
Maybe they do, maybe they don't - I live in a small village and until I decide whether I want the citizenship or not, I'm not going to rock the boat like that ;-)
I never wished to hold a Swiss passport as I saw no benefit, I specifically did not agree with forced inheritance, so made financial decisions on merit alone.
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  #106  
Old 15.01.2017, 01:24
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Re: Mortgage tips and risks

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I find 25 too high. I would suggest not buying anything that costs more than around 16x annual rent, or say 200x monthly rent (easy to calculate in your head).

EDIT: maybe with the low IR, you could deduct from the price the anticipated savings during the fixed rate period
That's an interesting tip. So in the first 15 years you may save 20-25% of the initial flat value.

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Tons of offers at that 25 factor, i.e. 4% Bruttorendite. Here's one: https://www.homegate.ch/kaufen/106161578, it's even 4.4%, and there's potential to jack the prices up.
That's a small block of flats. For 2.25 million CHF. What are we talking about? If he gets 4.4% then that's a 100'000 per year. 4 apartments, so each of them pays him 2100 CHF per month. 2100 is what I'm paying for a much better looking flat in a much better location.
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  #107  
Old 15.01.2017, 01:48
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Re: Mortgage tips and risks

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That's a small block of flats. For 2.25 million CHF. What are we talking about? If he gets 4.4% then that's a 100'000 per year. 4 apartments, so each of them pays him 2100 CHF per month.
It's 5 flats (2 are tiny), and 358m^2 rented out at average 21.6 Fr/m^2 net, with one paying even 28 Fr/m^2, so I'm seeing a potential 5.3% here. Location could have been better, yeah...

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2100 is what I'm paying for a much better looking flat in a much better location.
Rent alone doesn't say much without knowing at very least how big it is. But I bet the much better location is going to also be much better priced than 6280 Fr/m^2 here
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  #108  
Old 15.01.2017, 10:46
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Re: Mortgage tips and risks

Ah, now I saw on the last page of this PDF the list of all flats and rents:

https://www.homegate.ch/www/ftp/hgom/doc/Z42DVD3Kui.pdf

It's great that somebody shares these details like that.

It's interesting that Nebenkosten for the whole building are only 500/month. Just for my flat I pay 2100+300 Nebenkosten.

I'm surprised that there are takers for such high rents in such a localization. This looks like a big family house adapted to multiple flats to squeeze out as much money as possible.

Anyway, this is a whole building. It's a different thing than to sell an individual apartment. I would be happy if you could provide an example for a flat.
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