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Old 19.10.2007, 13:54
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Is Eigenmietwert being abolished ?

Anyone know the answer to this or have any info ?
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Old 19.10.2007, 13:58
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Re: Is Eigenmietwert being abolished ?

According to this article, the wheels are in motion for it to be abolished but I don't reckon it'll be within the next two years.
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25. September 2007, 11:35
===Eigenmietwertbesteuerung abschaffen===Die Eigenmietwertbesteuerung soll fallen. Nach dem Ständerat hat auch der Nationalrat einer entsprechenden Motion zugestimmt - trotz Bedenken der Ratslinken und von Bunderat Hans-Rudolf Merz.

Der Eigenmietwert sei ein «leidiges Dauerthema», sagte heute Philipp Müller (FDP/AG). Damit werde bei Wohnungs- und Hausbesitzern ein fiktives Einkommen besteuert. Das sei ein Anachronismus im Schweizer Steuersystem.
Müller rief den Rat deshalb dazu auf, eine vom Ständerat bereits gutgeheissene Motion anzunehmen, die verlangt, dass die Besteuerung des Eigenmietwerts ersatzlos aufgehoben wird. Schuldzinsen und der Unterhaltsabzug sollen in einem beschränkten Ausmass weiterhin abzugsfähig bleiben. =====Gleichbehandlung in Gefahr =====
Die Linke und Finanzminister Merz gestanden ein, dass die Besteuerung des Eigenmietwertes ein Problem sei. Allerdings bilde der Eigenmietwert den Ausgleich dafür, dass Eigentümer Hypothekarzinsen und Unterhaltskosten von den Steuern abziehen dürften, sagte Merz. Es gehe um die Gleichbehandlung gegenüber Mietern.
Hildegard Fässler (SP/SG) kritisierte, der Titel der Motion, «Schuldenfreiheit im Alter», führe in die Irre. Die Motion selber wolle die Besteuerung des Eigenmietwerts nämlich für alle abschaffen, nicht nur für Rentner.
Fässler plädierte dafür, an der Frage dranzubleiben und eine Lösung für Wohneigentümer im AHV-Alter zu finden. Weil viele alte Leute ihre Hypotheken abbezahlt hätten, bleibe ihnen nämlich ein unechtes Einkommen in Form des Eigenmietwertes. =====Volksinitiative läuft =====
Die bürgerliche Mehrheit nahm die Motion jedoch mit 82 zu 68 Stimmen an. Ein ähnlicher Vorschlag war mit der Volksabstimmung über das Steuerpaket im Jahr 2004 gescheitert.
Momentan sammelt der Hauseigentümerverband Unterschriften für eine Volksinitiative, die den Rentnern den Entscheid überlassen will, ob die Besteuerung des Eigenmietwertes für ihr Wohneigentum entfallen soll. Falls ja, könnten keine Abzüge auf Schuldzinsen mehr gemacht werden.
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Old 19.10.2007, 14:00
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Re: Is Eigenmietwert being abolished ?

Hi

For those of us in the French speaking regions, what is Eigenmietwert?

Thanks
Nats
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Old 19.10.2007, 14:13
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Re: Is Eigenmietwert being abolished ?

When you own a house, you have to declare the theoretical rent you could get for it as income, this is the Eigenmietwert or valeur locative. This can be a problem for old people who have long since paid their mortgage and whose house has a high theoretical rent, as it makes them liable to higher taxes than would befit their actual income.
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Old 19.10.2007, 14:31
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Re: Is Eigenmietwert being abolished ?

By the way, if you feel you are being charged too high a rate for the Eigenmietwert, try and collect ads for similar property as your own in the same area over a few months, such as you find on Homegate. Print them out and once you have a few you can use the data to back up your contestation of the value proposed by the tax authority. I've heard of cases where this has worked.
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Old 19.10.2007, 14:42
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Re: Is Eigenmietwert being abolished ?

Í've heard this rumor as well. Although, everyone I've discussed it with when researching purchasing a house, has been very doubtful that this will be abolished, as apparently it's been tried before. Of course, if this is abolished they would have to introduce some other tax system, property tax based on what? house value? So in the end the effect would be the same.
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Old 19.10.2007, 14:45
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Re: Is Eigenmietwert being abolished ?

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When you own a house, you have to declare the theoretical rent you could get for it as income, this is the Eigenmietwert or valeur locative. This can be a problem for old people who have long since paid their mortgage and whose house has a high theoretical rent, as it makes them liable to higher taxes than would befit their actual income.
This is also why the mortgage is never paid off. The interest offsets (somewhat? totally?) the rental income.
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Old 22.10.2007, 15:38
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Re: Is Eigenmietwert being abolished ?

Thanks all :-)
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Old 03.02.2011, 09:16
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Re: Is Eigenmietwert being abolished ?

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When you own a house, you have to declare the theoretical rent you could get for it as income, this is the Eigenmietwert or valeur locative. This can be a problem for old people who have long since paid their mortgage and whose house has a high theoretical rent, as it makes them liable to higher taxes than would befit their actual income.
probably a good thing as it would push for more efficient housing utilisation in a country that needs more housing. if you are a single person living in a huge place that could house a family, then you end up paying for the privilege.
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Old 03.02.2011, 18:20
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Re: Is Eigenmietwert being abolished ?

There was quite a lot about this in the papers a couple of years ago and I think some kind of change may come sooner or later (more likely later). The idea seemed to be that the eigenmiet would go and the money would be found by stopping or sustantially reducing tax rebates on mortgages. Theoretically most people would not notice the difference and a whole layer of bureaurcracy expenses (periodic property revaluations etc) would go. I think that it will take ages to get the plan accepted, but it is worth remembering that the system is not set in stone.
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Old 19.06.2011, 10:09
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Re: Is Eigenmietwert being abolished ?

as the 'boomer' generation retire, i suspect the weight of political voting power will shift to the abolition of EmW. the question is what, if anything, will replace it and how will the transition happen.
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Old 19.06.2011, 11:28
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Re: Is Eigenmietwert being abolished ?

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as the 'boomer' generation retire, i suspect the weight of political voting power will shift to the abolition of EmW. the question is what, if anything, will replace it and how will the transition happen.
As you also get 100% deduction on an mortgage there is little reason to abbolish EmW. Both would need to happen, otherwise it's not 'fair' on renters.

There is also little incentive to pay off a mortgage, normally 2/3 never gets paid off. It sounds rather like renting to me, I can't see the point of buying a property in CH at all.
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Old 19.06.2011, 11:36
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Re: Is Eigenmietwert being abolished ?

But if you've been saddled with a mortgage all your life, at times with 19% interest (!!! UK early 80s) - and you've finally paid it off - the thought of 'having to' have a mortgage is not attractive. It's like banging your head against a wall, it's quite pleasant when you can stop.
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Old 19.06.2011, 11:58
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Re: Is Eigenmietwert being abolished ?

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As you also get 100% deduction on an mortgage there is little reason to abbolish EmW. Both would need to happen, otherwise it's not 'fair' on renters.

There is also little incentive to pay off a mortgage, normally 2/3 never gets paid off. It sounds rather like renting to me, I can't see the point of buying a property in CH at all.
i think the proposal is that both EmW and interest deduction will be abolished.
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Old 19.06.2011, 15:37
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Re: Is Eigenmietwert being abolished ?

Abolition of Eigenmietwert has been an on and off topic for as long as I can remember. IMHO Eigenmietwert offers some social justice as it gives people incentive not to buy larger or more expensive properties than they actually need, and encourages for example old people whose family has moved out to consider downsizing and so making family-friendly homes available for those who need them most: that is families. It also discourages speculation. In Swizerland you hardly ever see an empty house, and if it is empty it doesn't stay empty for long because nobody likes to be taxed on something that's not generating income. In many other countries I've seen, empty rotting properties owned by speculators are a real bane and make cities ugly. Without this tax, property prices would be even higher. But of course for those actually own places, that hike in value is a good thing so they are in favour of it and of course they are the voters that the likes of the FDP and SVP are courting. And of course these parties like to talk about the problem to attract voters but don't really want to solve or change it because that would be one reason less to vote for them.
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Old 19.06.2011, 15:51
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Re: Is Eigenmietwert being abolished ?

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i think the proposal is that both EmW and interest deduction will be abolished.
So buying a house in a country where the mortgage is never paid off is verry unnatractive IMHO.
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Old 19.06.2011, 15:59
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Re: Is Eigenmietwert being abolished ?

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So buying a house in a country where the mortgage is never paid off is verry unnatractive IMHO.
You can of course pay off your mortgage if you want to. But with such low interest rates now (<1%), you can get a better return with your money somewhere else.
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Old 19.06.2011, 20:03
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Re: Is Eigenmietwert being abolished ?

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You can of course pay off your mortgage if you want to. But with such low interest rates now (<1%), you can get a better return with your money somewhere else.
I doubt you will get a mortgage below 1%. Low interest rates have prevented house prices from falling, it's a double edged sword.

I was looking at some overpriced property 6 years ago, much was still on the market 3 years ago, there is really very little market.

I looked at one bank repossession, a modernised farm house, unfortunately when modernising the structure was damaged (Heavier roof & knocking down internal walls), so the whole building actually had a negative value! The outstanding mortgage was way more than fair value.

Another modern house cost the owner 1,350,000 to build, he had been trying to sell since his wife died & would have accepted 800,000 however no takers, this was in 2004/5, so long before the crash.
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Old 19.06.2011, 20:56
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Re: Is Eigenmietwert being abolished ?

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So buying a house in a country where the mortgage is never paid off is verry unnatractive IMHO.
you are not forced to leave your mortgage outstanding!

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I doubt you will get a mortgage below 1%. Low interest rates have prevented house prices from falling, it's a double edged sword.
very true. if you buy here, i think you have to assume your capital is locked away forever and so your calculation needs to make sense based on yield.

i got a rate of 1.06% (LIBOR variable) and 2.87% (10 year fix). if you work for one of the banks, you can probably get a sub-1% LIBOR and a more attractive fix.

as far as I am concerned, at these rates, it's as good as free money.
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Old 19.06.2011, 21:05
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Re: Is Eigenmietwert being abolished ?

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you are not forced to leave your mortgage outstanding!
I got a very odd look from 2 banks when I wanted to pay off my loan in 15 years, I was told thats not done like that in Switzerland.
One of the lenders wanted to sell some insurance backed nonsence saying it must be for 30 years minimium, I said is that how long it will take to get my money back after your commission!
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