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Old 23.06.2020, 16:22
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Forum shout: Were you surprised by Swiss mortgages?

Have you bought a home in Switzerland and been surprised by what you could afford or been surprised by other advantages of the Swiss property buying or mortgage system?

Did you buy a home in a commuter town to get more for your money and make the most of Switzerland's excellent transport links?

The Local would like to hear from you! Comment below or email creativestudio@thelocal.com

We are writing a article in collaboration with a Swiss mortgage calculator tool service that offers mortgage calculations (in English) and also a load of lesser known financial secrets about whats possible with mortgages and ways to buy property.
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Old 23.06.2020, 16:36
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Re: Forum shout: Were you surprised by Swiss mortgages?

I could afford the monthly repayments on a magnificent mansion .. But I couldn't afford the required up front cash.

The system is geared towards renting and keeping property purchase for the few..

Thems the choices. I choose to pay big rent for a nice place rather than pay small rent for a crappy place and save up. I might get knocked over tomorrow
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Old 23.06.2020, 21:24
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Re: Forum shout: Were you surprised by Swiss mortgages?

With an EF average Salary of 120k and 200k in savings the EF expats seem to be priced out of the exorbitant Swiss property market.

The banks calculate based on an affordability rate of 5% + 1% maintenance + 1% amortization.

So for tiny shed somewhere in Zurich priced at CHF1m you would need 200k deposit (or pledged pension) and be able to afford roughly 7% of the 800k mortgage. (i.e the theoretical annual payments at 7% don’t exceed 1/3 of your gross salary). This means you need to earn 170k a year or put up more money upfront.

With interest rate so low (negative even), house prices will only go up and up as people with money can’t find many places for the money to go. unless some miracle happens many people will just continue renting as rents have actually gone down as many of the rents are linked to the “Referenzsinsatz”.
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Old 23.06.2020, 22:08
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Re: Forum shout: Were you surprised by Swiss mortgages?

What excellent commuter links?

3 hours in public transport versus 1hr in car is hardly "excellent"!

Tom
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Old 24.06.2020, 17:01
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Re: Forum shout: Were you surprised by Swiss mortgages?

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Have you bought a home in Switzerland and been surprised by what you could afford or been surprised by other advantages of the Swiss property buying or mortgage system?
No.
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Old 24.06.2020, 17:15
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Re: Forum shout: Were you surprised by Swiss mortgages?

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With an EF average Salary of 120k and 200k in savings the EF expats seem to be priced out of the exorbitant Swiss property market.

The banks calculate based on an affordability rate of 5% + 1% maintenance + 1% amortization.

So for tiny shed somewhere in Zurich priced at CHF1m you would need 200k deposit (or pledged pension) and be able to afford roughly 7% of the 800k mortgage. (i.e the theoretical annual payments at 7% don’t exceed 1/3 of your gross salary). This means you need to earn 170k a year or put up more money upfront.
A consequence of all this .... by the time you have saved all your money and can finally afford to get a 1M chf house with a mortgage based on your sub 100k chf salary, you can also afford to move to Spain and retire... so why buy a house then ?
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Old 24.06.2020, 17:24
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Re: Forum shout: Were you surprised by Swiss mortgages?

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Have you bought a home in Switzerland and been surprised by what you could afford or been surprised by other advantages of the Swiss property buying or mortgage system?
I don't understand this post?

Why would somebody be surprised of how much they can afford? And what advantages of the Swiss system? It is like almost everywhere, you can get a loan based on income and aslong as you pay you keep the house and if you don't they sell the place to get their money.

Tbh Swiss market is F'ed up as can be and building a house yourself is over-regulated making it almost impossible to do so without still needing a whole bunch of people who want to earn money on you. I could buy ground here and build myself a great place for 250K all together, but Swiss system makes this impossible.
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Old 24.06.2020, 17:43
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Re: Forum shout: Were you surprised by Swiss mortgages?

Quote:
View Post
Have you bought a home in Switzerland and been surprised by what you could afford or been surprised by other advantages of the Swiss property buying or mortgage system?
Quote:
I don't understand this post?

Why would somebody be surprised of how much they can afford? And what advantages of the Swiss system? It is like almost everywhere, you can get a loan based on income and aslong as you pay you keep the house and if you don't they sell the place to get their money.
Don't worry, it probably doesn't mean anything at all. Their question in the OP, like this thread überhaupt, is probably there purely as part of the marketing for the tool they're going to promote.

Nothing to see here.
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Old 24.06.2020, 18:56
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Re: Forum shout: Were you surprised by Swiss mortgages?

Quote:
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With an EF average Salary of 120k and 200k in savings the EF expats seem to be priced out of the exorbitant Swiss property market.

The banks calculate based on an affordability rate of 5% + 1% maintenance + 1% amortization.

So for tiny shed somewhere in Zurich priced at CHF1m you would need 200k deposit (or pledged pension) and be able to afford roughly 7% of the 800k mortgage. (i.e the theoretical annual payments at 7% don’t exceed 1/3 of your gross salary). This means you need to earn 170k a year or put up more money upfront.

With interest rate so low (negative even), house prices will only go up and up as people with money can’t find many places for the money to go. unless some miracle happens many people will just continue renting as rents have actually gone down as many of the rents are linked to the “Referenzsinsatz”.

120k per person is the EF poverty line :-) not average!
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