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Old 22.11.2019, 08:23
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Re: Is it worth buying a flat in Switzerland?

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Steve678, have you actually found a property that you have a reasonable chance of winning the bid to buy?

Obviously YMMV, especially those not burdened with the blue passport.

Again, YMMV. If you are comfortable with communal living you likely will not run into this. In fairness, this is not a buy vs rent issue, it's a life in Switzerland issue.

Good luck with your decision.
YMMV = your mileage might vary
I had to google that one.
I hope I didn't lose any street cred.
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  #42  
Old 22.11.2019, 09:32
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Re: Is it worth buying a flat in Switzerland?

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YMMV = your mileage might vary
I had to google that one.
I hope I didn't lose any street cred.
Sorry.

You know you've been living in Switzerland too long when you find yourself liberally sprinkling 'your mileage may vary, by canton and Gemeinde...' into most discussions.
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  #43  
Old 22.11.2019, 09:59
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Re: Is it worth buying a flat in Switzerland?

It also depends on the canton where you buy.
I know that when we owned our place we paid taxes on the fictive amount that we would of saved in rent ie: they decided that tax should be paid on an additional CHF24,000 fictive income
Also capital gains can be quite steep (again depending on the canton) you can pay something like 60% of the profit if you sell within 5 years and a sliding scale down to 15% after 20 years.
That's how it was for us anyway.
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Old 22.11.2019, 10:51
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Re: Is it worth buying a flat in Switzerland?

Longer-term it is worth it in certain locations, think near a lake and away from big sources of pollution.
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  #45  
Old 22.11.2019, 12:12
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Re: Is it worth buying a flat in Switzerland?

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Longer-term it is worth it in certain locations, think near a lake and away from big sources of pollution.
Are you suggesting that location plays a role in the value of real estate?

What about location, and location?
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Old 23.11.2019, 16:39
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Re: Is it worth buying a flat in Switzerland?

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Is it better to buy or rent? If you have have the cash to buy a flat, is it a better deal to buy rather than renting and keeping the cash invested?
The key difference between buying and renting is the calculation of your personal net worth. If you are buying, assuming you are going to do mortgage, the monthly payment to bank will still be counted as your net worth. Rent, however, just goes away.

On the other hand, yearly rate of return in the long run, stock market does better than property.

Therefore, the answer to your question depends on yourself that what you want, how well you invest in stock market (i.e. estimated rate of return if you buy stock) etc.
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  #47  
Old 23.11.2019, 17:44
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Re: Is it worth buying a flat in Switzerland?

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Is it better to buy or rent? If you have have the cash to buy a flat, is it a better deal to buy rather than renting and keeping the cash invested?

In case of buying: Were is it? How much does it cost? How old is the building? Previous renovations? Monthly costs? Status of the maintenance and repair fund?
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  #48  
Old 16.04.2020, 19:17
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Re: Is it worth buying a flat in Switzerland?

I found a couple of websites which may be useful.
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  #49  
Old 16.04.2020, 19:24
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Re: Is it worth buying a flat in Switzerland?

Looking for a bank/financial institution to get a mortgage, anyone would like to share his/her experience, tips, recommendations?
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  #50  
Old 16.04.2020, 19:28
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Re: Is it worth buying a flat in Switzerland?

Got ours with UBS, but we bank with them anyway. Had a small hiccup when we went to sign the papers and they realised I was dual US/UK, but a quick phone call by the bank manager got it okayed. Subsequently gave up the US part so no problem now.
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Old 16.04.2020, 19:47
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Re: Is it worth buying a flat in Switzerland?

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Looking for a bank/financial institution to get a mortgage, anyone would like to share his/her experience, tips, recommendations?
It‘s a competitive market (buyers’ market) and banks will negotiate if pushed and are presented with other quotes....
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Old 16.04.2020, 23:22
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Re: Is it worth buying a flat in Switzerland?

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If you have never done it, how do you know how it feels??

I have had a mortgage in one form or another since 1971 and have NEVER felt that the bank/building society or whatever owned my property.

You mean if you lease a car, which can be a far greater commitment in loan percentage than a mortgage, you feel the car is owned by the credit company??
I'm impressed you've managed not to pay the mortgage off in that time. Especially given a house in 1971 must have cost about thruppence.
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Old 17.04.2020, 01:56
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Re: Is it worth buying a flat in Switzerland?

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I'm impressed you've managed not to pay the mortgage off in that time. Especially given a house in 1971 must have cost about thruppence.
I'm guessing -- just a wild guess, mind -- that AbFab is no longer living in the house he bought 50-odd years ago, and has most likely upgraded several times since then.

I bought my first home 35 years ago, with a mortgage, Since then, I've bought and sold nine times (I think). I still have a mortgage, but my house is worth multiples what I paid for my first home.

In any case, it makes financial sense not to pay off your home loan in Switzerland.
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  #54  
Old 17.04.2020, 07:20
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Re: Is it worth buying a flat in Switzerland?

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In any case, it makes financial sense not to pay off your home loan in Switzerland.
I’m really not convinced by this. It only makes sense if you are reinvesting the repayments in something which gives a return higher than the mortgage rate and that should be looked at on a risk adjusted basis. Making a saving on your taxes because you deduct interest expense, still means you have to pay the interest expense in the first place.
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Old 17.04.2020, 08:55
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Re: Is it worth buying a flat in Switzerland?

Here's a snippet from 1849 - quite relevant today:

"Let us pay that debt ere we further weaken the security for these valuations of property are perfectly fictitious but the debt is real. How many landowners and mortgagees have discovered debt and its interest were fixed while the price land was moveable. Fixed fasts and moveable feasts are the fate of the embarassed. Cholera reduced travelling for a few weeks in August and September. The weekly receipts in railways fell in consequence."
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  #56  
Old 17.04.2020, 09:09
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Re: Is it worth buying a flat in Switzerland?

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I'm impressed you've managed not to pay the mortgage off in that time. Especially given a house in 1971 must have cost about thruppence.
My north London flat cost £7,500 in 1971. I‘ve moved seven times since then, each time moving up and increasing my mortgage, which is now 66 times more than the total cost of my first flat...
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Old 17.04.2020, 09:55
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Re: Is it worth buying a flat in Switzerland?

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Looking for a bank/financial institution to get a mortgage, anyone would like to share his/her experience, tips, recommendations?
As adfab said it is a competitive market, shop around. With a 20% downpayment, you are taking most of the risk of there being a downturn in the swiss market. When we were working it made sense to buy, now in retirement I think it makes sense to rent, unless of course you have millions to play with.
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Old 17.04.2020, 10:40
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Re: Is it worth buying a flat in Switzerland?

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In any case, it makes financial sense not to pay off your home loan in Switzerland.
Unless
a) there is an interest rate crisis - not fun
b) you get to retirement and your retirement income does not meet your mortgage providers stress test scenario, requiring you to instantly pay down a lump sum or sell your home at retirement - also not fun!
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Old 17.04.2020, 11:45
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Re: Is it worth buying a flat in Switzerland?

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It‘s a competitive market (buyers’ market) and banks will negotiate if pushed and are presented with other quotes....
I am amazed if that is true today, 3 months ago I am sure it was.
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Old 17.04.2020, 12:03
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Re: Is it worth buying a flat in Switzerland?

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Unless
a) there is an interest rate crisis - not fun
b) you get to retirement and your retirement income does not meet your mortgage providers stress test scenario, requiring you to instantly pay down a lump sum or sell your home at retirement - also not fun!
Not paying back the mortgage only makes sense if you save and invest the money otherwise. Simply not paying back and spending the money is stupid and the worst possible choice (Unless you have no heirs or only heirs you are more than willing to leave a huge debt behind).
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