Go Back   English Forum Switzerland > Help & tips > Housing in general  
Reply
 
Thread Tools Display Modes
  #1  
Old 06.04.2011, 18:24
Guest
 
Posts: n/a
Total time wasters!

People come and see the house, fall in love with it, tell you they definitely want to buy it, as it is just perfect for them.
Then a few weeks go by, they make excuses saying they need to get some admin sorted - then finally say they haven't got the money for the 20% required (with 80% mortgage). Surely people know that when they agree to buy?!?
Reply With Quote
  #2  
Old 06.04.2011, 18:27
Carlos R's Avatar
Forum Legend
 
Join Date: Dec 2009
Location: Roundn'about Basel
Posts: 7,229
Groaned at 105 Times in 95 Posts
Thanked 9,934 Times in 4,178 Posts
Carlos R has a reputation beyond reputeCarlos R has a reputation beyond reputeCarlos R has a reputation beyond reputeCarlos R has a reputation beyond reputeCarlos R has a reputation beyond reputeCarlos R has a reputation beyond repute
Re: Total time wasters!

Quote:
People come and see the house, fall in love with it, tell you they definitely want to buy it, as it is just perfect for them.
Then a few weeks go by, they make excuses saying they need to get some admin sorted - then finally say they haven't got the money for the 20% required (with 80% mortgage). Surely people know that when they agree to buy?!?
Apart from a glib "clearly not"... ... we found it very hard to gauge what we could afford in CH as the property market - or maybe more pertinently the mortgage set up - is completely alien.

Added to which, banks wanted us to find a property first and then they wanted to tell us if we could get a mortgage - somewhat of a chicken and egg, or rather for us a cart before horse, scenario.

Still, there's time wasters and time wasters.
Reply With Quote
  #3  
Old 06.04.2011, 18:40
Guest
 
Posts: n/a
Re: Total time wasters!

Agreed, it is a very different ball game here. But both were Swiss and knew perfectly well 20% personal money is the minimum required to purchase here- and the mortgage rate is pretty well the same all around.
So for around CHF500.000 you need to have about CHF100.000 to go ahead, with 400.000 on mortgage. On today's rates it means your 'rental' per month is about CHF1000 for a big family house + garden.
Reply With Quote
  #4  
Old 06.04.2011, 18:55
Carlos R's Avatar
Forum Legend
 
Join Date: Dec 2009
Location: Roundn'about Basel
Posts: 7,229
Groaned at 105 Times in 95 Posts
Thanked 9,934 Times in 4,178 Posts
Carlos R has a reputation beyond reputeCarlos R has a reputation beyond reputeCarlos R has a reputation beyond reputeCarlos R has a reputation beyond reputeCarlos R has a reputation beyond reputeCarlos R has a reputation beyond repute
Re: Total time wasters!

Quote:
Agreed, it is a very different ball game here. But both were Swiss and knew perfectly well 20% personal money is the minimum required to purchase here- and the mortgage rate is pretty well the same all around.
So for around CHF500.000 you need to have about CHF100.000 to go ahead, with 400.000 on mortgage. On today's rates it means your 'rental' per month is about CHF1000 for a big family house + garden.
Ah. So just some nosey neighbours who wanted to see inside your home...
Reply With Quote
  #5  
Old 06.04.2011, 19:07
Guest
 
Posts: n/a
Re: Total time wasters!

Not my home - just a friend's. Ours is NOT for sale (love it).
Reply With Quote
  #6  
Old 06.04.2011, 19:09
porsch1909
 
Posts: n/a
Re: Total time wasters!

Quote:
Agreed, it is a very different ball game here. But both were Swiss and knew perfectly well 20% personal money is the minimum required to purchase here- and the mortgage rate is pretty well the same all around.
So for around CHF500.000 you need to have about CHF100.000 to go ahead, with 400.000 on mortgage. On today's rates it means your 'rental' per month is about CHF1000 for a big family house + garden.
According to the UBS mortgage calculator you need 2417 per month for a 500k property!

http://www.ubs.com/1/e/ubs_ch/privat...alculator.html

Otherwise I'd be taking a trip to have a look at your property!
Reply With Quote
  #7  
Old 06.04.2011, 19:13
bigblue2's Avatar
Forum Legend
 
Join Date: Mar 2009
Location: Glarus
Posts: 8,089
Groaned at 485 Times in 404 Posts
Thanked 14,715 Times in 5,780 Posts
bigblue2 has a reputation beyond reputebigblue2 has a reputation beyond reputebigblue2 has a reputation beyond reputebigblue2 has a reputation beyond reputebigblue2 has a reputation beyond reputebigblue2 has a reputation beyond repute
Re: Total time wasters!

Quote:
View Post
According to the UBS mortgage calculator you need 2417 per month for a 500k property!

http://www.ubs.com/1/e/ubs_ch/privat...alculator.html

Otherwise I'd be taking a trip to have a look at your property!

I'd avoid ubs then, ours is no where near that!!
Reply With Quote
  #8  
Old 06.04.2011, 19:17
Guest
 
Posts: n/a
Re: Total time wasters!

My friend who is selling is parents' home, where he grew up. is a financial advisor (just retired) and he knows his figures. But the hard thing is to come up with the 20% savings.
Reply With Quote
  #9  
Old 06.04.2011, 19:18
porsch1909
 
Posts: n/a
Re: Total time wasters!

Quote:
View Post
I'd avoid ubs then, ours is no where near that!!
Who's is yours with...you can PM me if you like? I could come up with the deposit but according to any mortgage calculator a 500k property with 100k down is beyond my means and I pay more than 1000CHF per month in rent at the moment.
Reply With Quote
  #10  
Old 06.04.2011, 19:21
bigblue2's Avatar
Forum Legend
 
Join Date: Mar 2009
Location: Glarus
Posts: 8,089
Groaned at 485 Times in 404 Posts
Thanked 14,715 Times in 5,780 Posts
bigblue2 has a reputation beyond reputebigblue2 has a reputation beyond reputebigblue2 has a reputation beyond reputebigblue2 has a reputation beyond reputebigblue2 has a reputation beyond reputebigblue2 has a reputation beyond repute
Re: Total time wasters!

Quote:
View Post
Who's is yours with...you can PM me if you like? I could come up with the deposit but according to any mortgage calculator a 500k property with 100k down is beyond my means and I pay more than 1000CHF per month in rent at the moment.

glarus kantonal bank, fixed for 5 years. get a few quotes and you can play the banks off against each other.
Reply With Quote
The following 2 users would like to thank bigblue2 for this useful post:
  #11  
Old 06.04.2011, 19:31
Guest
 
Posts: n/a
Re: Total time wasters!

Not the place to give details of the house. But will do so in the proper commercial place with photos tomorrow (btw I have NO financial interest here whatsoever).
Reply With Quote
  #12  
Old 06.04.2011, 19:36
Forum Legend
 
Join Date: Feb 2008
Location: Zurich
Posts: 3,471
Groaned at 17 Times in 15 Posts
Thanked 1,996 Times in 1,189 Posts
CH_Me has a reputation beyond reputeCH_Me has a reputation beyond reputeCH_Me has a reputation beyond reputeCH_Me has a reputation beyond repute
Re: Total time wasters!

Quote:
View Post
According to the UBS mortgage calculator you need 2417 per month for a 500k property!

http://www.ubs.com/1/e/ubs_ch/privat...alculator.html

Otherwise I'd be taking a trip to have a look at your property!
It is an affordability calculator and included an amount you should keep aside for repairs (1% I think).
Reply With Quote
This user would like to thank CH_Me for this useful post:
  #13  
Old 06.04.2011, 19:39
miniMia's Avatar
Forum Legend
 
Join Date: Apr 2007
Location: romandie
Posts: 9,979
Groaned at 101 Times in 92 Posts
Thanked 9,106 Times in 4,522 Posts
miniMia has a reputation beyond reputeminiMia has a reputation beyond reputeminiMia has a reputation beyond reputeminiMia has a reputation beyond reputeminiMia has a reputation beyond reputeminiMia has a reputation beyond repute
Re: Total time wasters!

CHF1000 sounds really low and CHF2400 sounds really high. The mortgage calculator on Homegate will give you a monthly payment of CHF1300 if you can 2% rate.
Reply With Quote
  #14  
Old 06.04.2011, 19:48
MrVertigo's Avatar
Forum Legend
 
Join Date: Feb 2010
Location: CH
Posts: 3,200
Groaned at 86 Times in 70 Posts
Thanked 5,788 Times in 2,254 Posts
MrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond repute
Re: Total time wasters!

Quote:
View Post
According to the UBS mortgage calculator you need 2417 per month for a 500k property!

http://www.ubs.com/1/e/ubs_ch/privat...alculator.html

Otherwise I'd be taking a trip to have a look at your property!
The calculator uses 5% as interest rate. This is the worst case scenario used by banks to check if you can afford it or not: the monthly payment should not exceed 30% of your income.
Reply With Quote
This user would like to thank MrVertigo for this useful post:
  #15  
Old 06.04.2011, 19:50
MrVertigo's Avatar
Forum Legend
 
Join Date: Feb 2010
Location: CH
Posts: 3,200
Groaned at 86 Times in 70 Posts
Thanked 5,788 Times in 2,254 Posts
MrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond repute
Re: Total time wasters!

Quote:
View Post
CHF1000 sounds really low and CHF2400 sounds really high. The mortgage calculator on Homegate will give you a monthly payment of CHF1300 if you can 2% rate.
1000 is possible for mortgages with mixture of fix interest rate and Libor indexed rates (very low now, around 0.2%)
Reply With Quote
  #16  
Old 06.04.2011, 19:52
st2lemans's Avatar
Forum Legend
 
Join Date: Dec 2010
Location: Lugano
Posts: 31,400
Groaned at 2,325 Times in 1,692 Posts
Thanked 38,072 Times in 17,981 Posts
st2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond repute
Re: Total time wasters!

Quote:
View Post
CHF1000 sounds really low and CHF2400 sounds really high. The mortgage calculator on Homegate will give you a monthly payment of CHF1300 if you can 2% rate.
Yes, but the UBS thing adds in monthly ancillary costs of about CHF 400, and is not just the mortgage. Also, they list the minimum (at 1.48%) of 1306 at the bottom.

Tom
Reply With Quote
  #17  
Old 06.04.2011, 19:53
porsch1909
 
Posts: n/a
Re: Total time wasters!

Quote:
View Post
The calculator uses 5% as interest rate. This is the worst case scenario used by banks to check if you can afford it or not: the monthly payment should not exceed 30% of your income.
So is it possible to get a mortgage if the affordability exceeds a third but the mortgage payments do not?
Reply With Quote
  #18  
Old 06.04.2011, 19:55
MrVertigo's Avatar
Forum Legend
 
Join Date: Feb 2010
Location: CH
Posts: 3,200
Groaned at 86 Times in 70 Posts
Thanked 5,788 Times in 2,254 Posts
MrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond repute
Re: Total time wasters!

Quote:
View Post
So is it possible to get a mortgage if the affordability exceeds a third but the mortgage payments do not?
can you explain? I did not get it.
Simply:
- you need 20% ad down payment.
- the monthly mortgage payment at 5% rate should not exceed 30% of your monthly income.
Reply With Quote
This user would like to thank MrVertigo for this useful post:
  #19  
Old 06.04.2011, 20:03
porsch1909
 
Posts: n/a
Re: Total time wasters!

Quote:
View Post
can you explain? I did not get it.
Simply:
- you need 20% ad down payment.
- the monthly mortgage payment at 5% rate should not exceed 30% of your monthly income.
I mean if you go to a calculator and it adds the amortization and upkeep costs does the bank look at this figure or does it look purely at the mortgage payment?
Reply With Quote
  #20  
Old 06.04.2011, 20:11
MrVertigo's Avatar
Forum Legend
 
Join Date: Feb 2010
Location: CH
Posts: 3,200
Groaned at 86 Times in 70 Posts
Thanked 5,788 Times in 2,254 Posts
MrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond reputeMrVertigo has a reputation beyond repute
Re: Total time wasters!

Quote:
View Post
I mean if you go to a calculator and it adds the amortization and upkeep costs does the bank look at this figure or does it look purely at the mortgage payment?
they look at the total (including amortization & upkeep costs). It's swiss bank regulator (Finma) rules.
Reply With Quote
This user would like to thank MrVertigo for this useful post:
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Oh that *click* with a total stranger - how I love that second :) Sada General off-topic 82 22.04.2009 08:46
Christmas time wasters Polorise General off-topic 7 10.12.2007 17:27
Total Apartment Costs RGBaby Housing in general 1 03.08.2007 09:01


All times are GMT +2. The time now is 18:23.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0