Yes.

Yes.

Tom

You can always rent something close to the work, but will have to return home for every weekend, and obviously remain registered at your main residence paying taxes there. I don't know how easy that is for non-EU B permit holders.

I see this happening here too, and sometimes it's a real blessing... They've demolished some depressing apartment buildings built in the '50s and replaced them with "faceless" but decent apartments buildings. Unfortunately also destroyed a small park in the process but hey ho.
I feel very sorry only when I see some old buildings about which you can really say have some character and belonged to a nicer era architecture wise and remind us of times long gone. But I cannot judge, some of them need a lot of money for sanitation, restorations and what not and the ground beneath them is worth so much here. Land is much more valuable than the building itself. And people behave economically, much less frequently emotionally/sentimentally.

To pay back a mortgage in 20-30 years requires far higher payments than paying interest only. The idea is you never payback the mortgage.

If it’s a competitive one you can transfer it to your buyer when you sell.

If not, it is deducted from the sale price (lender has first priority), which should have increased considerably over 20-30 years. Which your kids should be happy with.

FYI I have CHF500,000 interest only mortgage for 8 years at 0.82% - that’s CHF4,100 a year or CHF342 a month - that’s the advantage…

Generally, and it may change with interest rates. You pay slightly less for a comparable flat when you buy over renting.

So you buy and own 35% in 20 or 30 years if your place increases by lets say 10% you effectively own 45%. And instead of paying that debt of, you invest the 1% amortisation. On top of that you invest the savings you make from buying compared to renting. Ok there will be maintenance costs etc but you could perhaps cover those with the tax savings because you carry a debt (the loan). But in 30 years you would have lets say 45% of the properties value invested. You make 10% on your investment - 55% of the original property value in cash/stocks and 45% of the new value of the property is yours.

Compared to renting and having nothing

Its not a bad nest egg to leave your dependants, even if they do technically take over the debt!

Stating the obvious, but the above is an optimistic situation. If it goes south, then of course there is a big problem, but thats a risk you would need to consdier

At current prices, I would really only buy if it's worth it (sunny, nice view etc.).

I believe I paid about 30-ish yearly rents for mine (maybe a bit less, it's a bit difficult to assess for just how much you could rent it out).

Except the tax saving are already offset by the valeur locative that is added to your income no?

So I am just reading the "Grundbuchauszug" for the apartment that I am interested in. There is a part called "Pfandrechte" where three different creditors (bank, pension fond, some kind of "Verein") are listed with three bonds (If I understand it correctly), in total more than 300k CHF.

can someone explain this to me this situation and could that somehow influence the purchase of the apartment?
I have tried to find an explanation online that is easy to understand, but no....not to me.

thanks!

The owner owes that amount to those banks. Either you take over the mortgage and keep that or the owner pays this off, has this taken off and your bank will add the amount you owe them s security.

I would look closely at what the Verein has!

why? what is the difference? it is Pro Senectute, Verein für das Alter.

Just because I never heard of a Verein having rights to the apartment. Is it only money?

yes, if I understand it correctly, it should be only money.

It can be much less than comparative rent - ie mirror same flat next to us was offered for rent on homegate during our purchase for almost 50% more than we pay for mortgage, AND:

• mortgage was not the best %, so payments can be even lower (I don't believe we will ever go back to 7% or worse long term, there would be way too many beggars around)
• you can modify anyhow the place, nobody can ever kick you out so kids have stable environment to grow up
• we will pay even less monthly once paying 15% of the value
• inflation is running crazy now, and basically its baked-in feature of current global economic system so money will keep losing value again and again for various reasons
• all investments into property & mortgage payments are deducted from highest margin tax, saving ie 45% of the cost, this is a bit offset by paying imputed tax but its still beneficial

Its not smart to buy in CH when you move around a lot or don't plan to settle here, thats for sure. Invest in emerging markets for best returns in that case.

Wow, is your marginal tax rate really 45%?

Renting is always the worst alternative. Buying is the best.At least at the end of 20 years you have something to show for your money.

Debt you mean?

Not necessarily.

1. You could buy prior to a property crash, in a bubble phase. And be left with a property and mortgage that doesnt have that value any more in the market. (ask any irish person about this)


2. If interest rates rise the interest rate you are paying to the bank can be considered a "rent" - ie dead money.


Renting, in a country like switzerland where it is very governed, can actually be a very risk adverse option and then spend your money on (or invest in) something else that really interests you.

Happening all around me. Really beautiful houses getting pulled down and being replaced with huge ugly shoe boxes. The finish on these new shoe boxes is so bad that they look already old and depressing.

The comments on leaving your property to your heirs brings up a theoretical question:

If the heir to a Swiss property is not a Swiss resident, is that person allowed to keep the property - say, to rent out or for own holiday use - or must the property be sold? (Assume the property does not have a mortgage.)