Go Back   English Forum Switzerland > Help & tips > Housing in general  
Reply
 
Thread Tools Display Modes
  #101  
Old 03.02.2011, 16:02
AbFab's Avatar
Forum Legend
 
Join Date: Sep 2006
Location: Zürich
Posts: 7,747
Groaned at 326 Times in 220 Posts
Thanked 10,714 Times in 3,729 Posts
AbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond repute
Re: Just bought a house!

Quote:
View Post
Won't abolishing the eigenmietwert affect the rights of renters? Will rents rise?
Eigenmeitwert has nothing to do with anyone's rights. It a kind of equalising notional figure added for taxation purposes to property owners' income.

I doubt it's abolition would make much difference at all the renters directly. But obviously it would affect owners. There may be a move to more families buying instead of renting. This might have a number of consequences:
  • it could release more rented property, thus easing demand and lowering rents
  • it could do the opposite and aggravate shortages and increase rents if rented property is then bought
  • it could make more owners pay off their mortgage as the interest can no longer be claimed against income or Eingemmietwert

The reality is that as long as demand for property to rent exceeds supply, rents are going to be forced up. Thankfully Switzerland has some fairly good systems in place to avoid a fully free-market scrabble - or rents would have risen even higher...
__________________


************************************
Fed up of smoking? 10 tips to quit in 10 days
Reply With Quote
  #102  
Old 03.02.2011, 16:26
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 13,789
Groaned at 271 Times in 177 Posts
Thanked 16,882 Times in 7,140 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Just bought a house!

i think emw has advantages and disadvantages. on the plus side, it works as a rationing function to make everyone pay for rental space and so encourage more efficient use of property.

on the negative side, it doesn't allow you to just pay off a house and allow you to live in it tax free. which in the end is a form of higher taxation or alternatively encourages people to pay more interest on mortgages to the bank (to offset the emw).
Reply With Quote
  #103  
Old 03.02.2011, 17:43
miniMia's Avatar
Forum Legend
 
Join Date: Apr 2007
Location: romandie
Posts: 9,993
Groaned at 101 Times in 92 Posts
Thanked 9,106 Times in 4,522 Posts
miniMia has a reputation beyond reputeminiMia has a reputation beyond reputeminiMia has a reputation beyond reputeminiMia has a reputation beyond reputeminiMia has a reputation beyond reputeminiMia has a reputation beyond repute
Re: Just bought a house!

Quote:
View Post
My advise is this for buying a house in Switzerland. Only do it if:
- you are 90% sure this is where you will be staying here for the long term (at least 10 years, optimally until retirement)
- the above criteria then infers that you should become fluent in the local language, at least to a high functioning level (high German OK)
- and decided to fully integrate here (to the best that a non-native Swiss can do it)
- start having more Swiss friends than UK/American ones
- don't hang out in foreigner clubs because these are primarily not the type of people who will stick around very long
- send your kids to the normal Swiss schools, fully acknowledge that they will consider themselves Swiss after a number of years here
- after your 12 year waiting period, get Swiss citizenship and vote
- do not buy real estate with the expectation that it is an ATM machine or a lucrative investment
- join a local Swiss Verein (club)...they have all sorts here
- learn to ski and go regularly
- start taking your holidays in Switzerland instead of flying back to the UK, Australia, US etc.
- read the local news, i.e. Tagesanzeiger, 20 Minutes, etc.
- watch local TV stations, particularly news to find out what is really going on here
- become aware of the political issues in the country
- play by the rules here, written and unwritten
Most of these are not really reasons to buy or not buy a property. Learn to ski, if not don't buy a house? I'm not buying a ski chalet.

Only two make any sense at all and those are the ones that are relevant to a financial/investment situation: 1. Be aware that selling with in 5 years has high tax implications. 2. Speculation is a bad reason to buy a property.

Quote:
View Post
on the negative side, it doesn't allow you to just pay off a house and allow you to live in it tax free. which in the end is a form of higher taxation or alternatively encourages people to pay more interest on mortgages to the bank (to offset the emw).
If they abolished it, they would just find a different way to get property taxes out of owners. In most places you don't pay this rental value thing, but you pay property taxes even if you own the house outright. One way or another they are going to get money from property owners.
__________________
Reply With Quote
  #104  
Old 04.02.2011, 14:46
Forum Veteran
 
Join Date: Dec 2005
Location: ZH
Posts: 1,184
Groaned at 15 Times in 13 Posts
Thanked 77 Times in 72 Posts
danny has earned some respectdanny has earned some respect
Re: Just bought a house!

Quote:
View Post
Congrats to the house! It's a great feeling!

The catch? Well, non really even though the "savings" would be somewhat lower than the 2000 CHF.

1.To your mortgage you also have to add the cost for renovation which is usually assumed to be 1% of the value of the house per year.

2. And the Eigenmietwert that you mention.

3. And the "loss" from alternative investments you could have made from the 325 KCHF (which you also mentioned).

But generally, at the end of the day, you usually come out slightly "cheaper" buying.

4. Another catch is of course the fact that you become less mobile and that 5. you have more work when something breaks down.
Quite a few catches, no ?
Reply With Quote
  #105  
Old 04.02.2011, 14:57
Guest
 
Posts: n/a
Re: Just bought a house!

Quote:
View Post
It can be surprisingly inexpensive to modernise a small area, like a bathroom, to be uber modern inside, leaving 98% of the building as it should be.

Would be great to see a pic from the outside. But then that might spoil the dream picture I have in mind already.
Neuchatel farmhouses all sort of look the same - Fortunately all the windows were replaced with good quality wood/metal double-glazing and the bathroom completely re-done before we bought. Kitchen dates from 70s - but who cares. So looking away from ex-pat communities- some real gems are to be found, at amazing prices.
Reply With Quote
  #106  
Old 04.02.2011, 21:04
Junior Member
 
Join Date: Nov 2009
Location: Hinwil
Posts: 56
Groaned at 0 Times in 0 Posts
Thanked 21 Times in 16 Posts
Shakey has no particular reputation at present
Re: Just bought a house!

Quote:
So looking away from ex-pat communities- some real gems are to be found, at amazing prices.
The problem many face is how far those real gems are from their place of work. You run the risk of selling yourself on gaining something (more land, bigger house, lower price) by commuting "just a bit more", and it seems that this doesn't always pay off. There's an interesting paper on this "Commuting Paradox" written by Swiss researchers:

http://ftp.iza.org/dp1278.pdf
Reply With Quote
  #107  
Old 04.02.2011, 21:12
hoppy
 
Posts: n/a
Re: Just bought a house!

I just looked at house prices where my house is. ten years and it is worth the same as when I bought it perhaps a little less. Our pension is buried in it. Since the we have had to save really hard to make up for the pension.
The best thing about buying a house in Swizerland is that they are usually solidly built so not much repair and you have a lot more freedom to do what you want in your own home. But unless you live in Geneva or Zurich I think that they are money pits.
Reply With Quote
  #108  
Old 04.02.2011, 21:15
Guest
 
Posts: n/a
Re: Just bought a house!

As always - there is a price to pay for everything. In our case, this was not an issue as we have just retired. But as accommodation and space is running out around big centres- people are going to look elsewhere, and possibly further. Many are getting fed up with living in fog and grey all winter too. For instance the Val-de-Travers is only a short rail journey away from Neuchatel - and many share cars. In exchange they get cheap prices. lots of space and access to brilliant countryside.


Choices have to be made. My daughter does an hour very expensive commute each way from Surrey to London - and still had to pay a fortune for a house. Here you can commute in comfort and not so expensive, and get a cheap house + space much cheaper.
Reply With Quote
  #109  
Old 04.02.2011, 22:57
AbFab's Avatar
Forum Legend
 
Join Date: Sep 2006
Location: Zürich
Posts: 7,747
Groaned at 326 Times in 220 Posts
Thanked 10,714 Times in 3,729 Posts
AbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond repute
Re: Just bought a house!

Quote:
View Post
I just looked at house prices where my house is. ten years and it is worth the same as when I bought it perhaps a little less.
You should see how my UK pension fund is doing. Not only down 20% in GBP, but the GBP is down 20% on the CHF.

You're in CHF and not doing badly...
Reply With Quote
This user would like to thank AbFab for this useful post:
  #110  
Old 04.02.2011, 23:08
Guest
 
Posts: n/a
Re: Just bought a house!

Glad (sorry not perversely) that we are not the only ones here on UK pensions and feeling the pinch. OUCH. But house prices up here are really very much cheaper than UK, so that helps. Of course AbFab, you could sell your house and change into £, and definitely be squids in. (yes, not our plan either).

When they visited the house to decide on the 'house tax', we were prepared and bartered very hard, and brought their figures significantly down. Part of the house is a unused barn and part is a old Parish room and facilities used for 'caricative' purpose, and was deducted. We asked our accountant (who is an old school friend) to be present and help with the discussion. It made a big difference.
Reply With Quote
Reply

Tags
home sweet home, house, real estate




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Separation/Divorce - being bought out of house Geordie Girl Family matters/health 10 10.05.2010 10:01
Anyone ever bought anything from www.misco.ch swissmama TV/internet/telephone 6 27.01.2010 17:00
if i bought electronics i.e a hifi from US monkeynut TV/internet/telephone 13 27.08.2009 12:44
Car bought in CH back to UK Nickelen Transportation/driving 2 02.05.2009 17:48
We bought the farm Karl Daily life 27 17.02.2009 23:56


All times are GMT +2. The time now is 00:21.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0