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  #41  
Old 09.05.2011, 21:57
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Re: renting vs buying - what would you do?

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When you do your costing, remember you'll need 20% cash in most circumstances. Must say I've never heard of a 90% mortgage in CH.
Perhaps you don't have a pet?

I have never had UBS or CS offer me more than 80%. Only smaller Kantonal banks. If the bank won't budge off 20% at all I personally take that as a sign that I am overpaying, and need to look again at the price.

Tax wise it is good to keep the deposit small. I don't have stocks or precious metals. But you can also pledge stocks, gold, bonds etc as a deposit, at something like 50% or 60% of market value, so you don't have to sell your shares, and can borrow the full purchase price.
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  #42  
Old 09.05.2011, 22:29
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Re: renting vs buying - what would you do?

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...we had prepared for his visit with a friend who 'knows what's what' and who had given us good advice. We were able to 'barter' and bring the sum down significantly from his initial asessment.
Can I ask what it was that your friend was aware of, and how you prepared for this visit/bartered the Eigentmietwert valuation?
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  #43  
Old 09.05.2011, 22:34
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Re: renting vs buying - what would you do?

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When you do your costing, remember you'll need 20% cash in most circumstances. Must say I've never heard of a 90% mortgage in CH.
I have known people that had them, but they got them back in the '90s.

Tom
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  #44  
Old 09.05.2011, 22:38
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Re: renting vs buying - what would you do?

Our house is a very old Vicarage/farm- with enormous volume, part of which is barn, and part of which is the old Parish meeting rooms/kitchen/wcs + quite a bit of land. We had to make the point very strongly that volume was not acceptable as a way of taxing us, and that part of the house was used for caricative use. + also that living up in the Jura is for many people seen as a disadvantage (NOT for us, this is exactly what we wanted) - and that fancy prices did not apply. We made sure we waited until their arrival to make any improvements to the decor/garden and house. It all helped hugely to bring down the initial price by about 35%.
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  #45  
Old 09.05.2011, 22:53
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Re: renting vs buying - what would you do?

I'm surprised nobody has mentioned one huge reason not to buy for quite a while after arriving in Switzerland: presumably you would be on a B permit, at best, for at least five years. While holding a B permit, you are permitted to purchase property (I'm not 100% sure of the rules for non-EU, though), BUT you would most likely not be permitted to rent your property out to anyone else.

This is obviously not a problem while you're living there, but what if you have to relocate out of the area due to a change in your job -- or you lose your job altogether and can't find another in the region? If you're still on a B permit, your only options are

a) rent the house out illegally for cash (not highly recommended);
b) hold it (empty) and keep paying the mortgage (or at best, not use your paid-off asset at all);
c) sell your property, possibly in a distress sale at the "wrong time" and incur the huge costs associated with that (as noted by others in this thread).

Wait for that C permit -- which implies that you've spent five years or more in Switzerland and have got to know the market and the areas you might want to live in.

If you come at all, of course. Good luck with that process!
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  #46  
Old 09.05.2011, 23:21
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Re: renting vs buying - what would you do?

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While holding a B permit, you are permitted to purchase property (I'm not 100% sure of the rules for non-EU, though), BUT you would most likely not be permitted to rent your property out to anyone else.
Worth taking a look at this thread for more on whether you can rent out your own home or not.

Taxes and distance from Zürich
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  #47  
Old 10.05.2011, 00:14
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Re: renting vs buying - what would you do?

Yes -- and I'd advise checking with a competent lawyer, too, as EFers' knowledge is not always gospel (mine included).

However, my understanding is that non-EU B permit-holders may not rent their properties out in Switzerland.
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Old 10.05.2011, 12:14
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Re: renting vs buying - what would you do?

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Silly expats of course, silly.
That's the easy way to define it, silly. They've got to have something special which others don't have.
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  #49  
Old 10.05.2011, 13:40
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Re: renting vs buying - what would you do?

They do. Higher salaries.
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Old 10.05.2011, 13:58
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Re: renting vs buying - what would you do?

I would be wary about rushing into buying if you have never lived in Switzerland for extended periods already anyway. The Swiss never rush into things so it may take a long time to sell again if you decide to move on or out. Unless you are in an expat friendly zone... everyone I know who has bought and refuse to rent are foreigners!
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  #51  
Old 10.05.2011, 14:01
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Re: renting vs buying - what would you do?

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Do you have dogs/cats as well as kids?
Just kids is a lot easier.
no pets, just kids, isn't that enough

Thanks for all the info! It really has been an informative trip down house ownership in CH.

BTW, my husband, who would be getting the work permit, is an EU citizen, in case that makes a difference.

I have obsessively been marking places that look interesting (both for rental and purchase - just to keep me busy longer) and if the offer is worthy, we will drive by the towns to get a feeling as to where we would like to be, or at least cross some of the properties off the list! This is all pretty overwhelming and exciting and nerve wracking at the same time.
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Old 10.05.2011, 14:07
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Re: renting vs buying - what would you do?

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BTW, my husband, who would be getting the work permit, is an EU citizen, in case that makes a difference.
It makes all the difference, as explained above.

But if you do buy, you may have to consider having the house in your husband's name only. Not necessarily, just maybe.
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  #53  
Old 10.05.2011, 15:20
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Re: renting vs buying - what would you do?

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They do. Higher salaries.
Those who ask if 4/5/6/ times or more the average Swiss salary is enough to live on and push the prices of rents and purchases up and beyond the 'locals'.
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  #54  
Old 10.05.2011, 20:07
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Re: renting vs buying - what would you do?

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It makes all the difference, as explained above.

But if you do buy, you may have to consider having the house in your husband's name only. Not necessarily, just maybe.
We had to do that in the US since my husband had no credit rating there. Luckily I had a job at the time so the bank would loan me the money! I think his name was on the deed, though, but just mine on the mortgage.
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  #55  
Old 10.05.2011, 20:12
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Re: renting vs buying - what would you do?

it's very likely banks will want to check his credit rating 'back home'. Who has the B permit - both? You need a B permit to buy in most Kantons. Certainly the case here - our house had to be bought in my name as my OH didn't have B permit at the time of purchase.
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  #56  
Old 10.05.2011, 22:56
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Re: renting vs buying - what would you do?

I think anybody who is using either GBP or USD to fund the 20% deposit could well und up with a hefty currency loss. My brother bought an apartment in Verbier 18 months ago has a hedge for his currency exposure, thats been expensive so far however currencies don't fall for ever.
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  #57  
Old 11.05.2011, 01:14
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Re: renting vs buying - what would you do?

currencies do fall forever.
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