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Old 25.04.2019, 10:24
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Building to own... Then renting it out later...

I'm aware that the banks usually want 40% to 50% down for a home which is intended for renting/income. However, say after 6 months or whatever time period, I decide to rent my own.... Is the bank really going to come back and ask for 20%? How will they even know I am renting the place... If this is your only property, I'm a bit perplexed as to this grey area...
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Old 25.04.2019, 10:29
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Re: Building to own... Then renting it out later...

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I'm aware that the banks usually want 40% to 50% down for a home which is intended for renting/income. However, say after 6 months or whatever time period, I decide to rent my own.... Is the bank really going to come back and ask for 20%? How will they even know I am renting the place... If this is your only property, I'm a bit perplexed as to this grey area...

Probably because you no longer live there and have your mailing address somewhere else. I wouldn´t joke with that
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Old 25.04.2019, 10:40
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Re: Building to own... Then renting it out later...

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Probably because you no longer live there and have your mailing address somewhere else. I wouldn´t joke with that
Say my mail always went to a PO box..... There must be someone on here who's done the above... Is it so unheard of someone buying a house, then renting out when they retire and living somewhere else...
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Old 25.04.2019, 10:45
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Re: Building to own... Then renting it out later...

Sure it's possible, but equally once the bank find out your not being totally honest with them, they can call in the mortgage leaving you with an even bigger problem.


As an individual, you are worthless to the bank, the multi million dollar fines has taken away any appetite they may have had for risk or anything funny.
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Old 25.04.2019, 10:45
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Re: Building to own... Then renting it out later...

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Say my mail always went to a PO box..... There must be someone on here who's done the above... Is it so unheard of someone buying a house, then renting out when they retire and living somewhere else...
Doing that is not unheard of. Trying to circumvent the tax requirements probably is, though...
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Old 25.04.2019, 10:46
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Re: Building to own... Then renting it out later...

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Doing that is not unheard of. Trying to circumvent the tax requirements probably is, though...
I didn't say I would try to circumvent the tax... It was just a basic and honest question with good replies above...
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Old 25.04.2019, 10:56
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Re: Building to own... Then renting it out later...

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Say my mail always went to a PO box....
The Swiss Post will provide the real address of a PO box upon request.

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8 Information to third parties

Swiss Post may disclose the names and addresses of the holder and of any co-users and sub-addressees of the P.O. Box to third parties, provided that they can substantiate a legitimate interest. Furthermore, the disclosure of the P.O. box address for the purpose of correcting and adapting address databases remains reserved.
From the German P.O. Box terms and conditions, translated with deepl.com.
https://www.post.ch/en/pages/footer/...conditions-gtc
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Old 25.04.2019, 12:31
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Re: Building to own... Then renting it out later...

It's not unusual for a bank to come and inspect a mortgaged property after a couple of years. After all, most of it belongs to them.

They'd expect you to be living there.

It's is possible to change the mortgage type if you decide to move out and rent it.
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Old 25.04.2019, 13:00
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Re: Building to own... Then renting it out later...

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It's not unusual for a bank to come and inspect a mortgaged property after a couple of years. After all, most of it belongs to them.

They'd expect you to be living there.

It's is possible to change the mortgage type if you decide to move out and rent it.
Sure, I'm guessing it would possible.. Thanks for the above info!
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Old 25.04.2019, 15:01
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Re: Building to own... Then renting it out later...

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Say my mail always went to a PO box.....
You sign that you will always keep the bank updated on your actual data like address. So changing your address and not informing them is a breach of contract, if they feel fraude was being intended they will simply call back the entire mortgage.

Sure you can try to pull it off, but a bank is more likely to discover such than your local sportschool.
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Old 25.04.2019, 15:12
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Re: Building to own... Then renting it out later...

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You sign that you will always keep the bank updated on your actual data like address. So changing your address and not informing them is a breach of contract, if they feel fraude was being intended they will simply call back the entire mortgage.

Sure you can try to pull it off, but a bank is more likely to discover such than your local sportschool.
Ok, I get that...... no buying and then renting out..
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Old 25.04.2019, 10:43
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Re: Building to own... Then renting it out later...

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I'm aware that the banks usually want 40% to 50% down for a home which is intended for renting/income. However, say after 6 months or whatever time period, I decide to rent my own.... Is the bank really going to come back and ask for 20%? How will they even know I am renting the place... If this is your only property, I'm a bit perplexed as to this grey area...
It's not a grey area at all, a mortgage for your own home is not a mortgage for an investment property. The Bank could withdraw the mortgage as you breached the T&C's. If any deposit was taken from your pension fund, this money also needs to be repaid before the property can be rented.
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Old 25.04.2019, 15:48
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Re: Building to own... Then renting it out later...

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However, say after 6 months or whatever time period, I decide to rent my own.... Is the bank really going to come back and ask for 20%?
They will not comeback asking for the additional 20%, they will comeback asking for 100% plus o/s interest and penalties. You would be in serious breach of the terms of the mortgage and that is how it is dealt with. And good luck trying to get any kind of bridging finance or future mortgage to cover their call. You might find this stage but generally speaking loan officers don't like to do business with people who have already shown themselves to be untrustworthy.


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How will they even know I am renting the place... If this is your only property,
You are the amature, they are the professionals. Do you seriuosly think they have not encountered this little game before? How many Canadian/Hungarians living in Schaffhausen, working in IT and currently seeking a mortgague do you think there are for a start? I'd say exactly one.

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I'm a bit perplexed as to this grey area...
It is not even remotely colse to being a grey area. It is patently obious from the start what your intentions are and to assume that loan officers will not see through it is just foolish.
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Last edited by Jim2007; 28.04.2019 at 17:07.
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Old 25.04.2019, 16:36
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Re: Building to own... Then renting it out later...

Also, seeing as you're a non-EU national, do you have a C permit? Because if not then you can only buy property that's going to be your main residence.

"Third-country nationals
You do not require a permit to buy a main residence (e.g. single-family house or owner-occupied flat) or building land where you live if you meet the following requirements:

You hold a valid residence permit, generally a B permit for foreign nationals.
You will live in that main residence for as long as you hold residence in that location.
If you wish to build on the land that you have purchased, you must do so within one year."

https://www.ch.ch/en/real-estate-foreign-national/
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Old 25.04.2019, 16:52
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Re: Building to own... Then renting it out later...

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Also, seeing as you're a non-EU national, do you have a C permit? Because if not then you can only buy property that's going to be your main residence.

"Third-country nationals
You do not require a permit to buy a main residence (e.g. single-family house or owner-occupied flat) or building land where you live if you meet the following requirements:

You hold a valid residence permit, generally a B permit for foreign nationals.
You will live in that main residence for as long as you hold residence in that location.
If you wish to build on the land that you have purchased, you must do so within one year."

https://www.ch.ch/en/real-estate-foreign-national/
I am an EU national with B permit, I might request to get an early C as well...

Rather than keep chewing me out over an honest question, lets just agree this can't be done and move on...
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Old 25.04.2019, 17:05
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Re: Building to own... Then renting it out later...

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I am an EU national with B permit, I might request to get an early C as well...

Rather than keep chewing me out over an honest question, lets just agree this can't be done and move on...

No need for an "early C", you can apply for one after 5 years on a B. And if you tick all the boxes (language being one for some countries), you will get one
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Old 25.04.2019, 17:07
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Re: Building to own... Then renting it out later...

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No need for an "early C", you can apply for one after 5 years on a B. And if you tick all the boxes (language being one for some countries), you will get one
I have my land already, so I meet that criteria. Rather I would ask how difficult is the German test for the C is... Holding a slovak passport would require me to do that test... Someone have some examples online to practice, read?

Getting out of scope here......
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