Go Back   English Forum Switzerland > Help & tips > Other/general
Reply
 
Thread Tools Display Modes
  #61  
Old 13.12.2006, 19:30
AbFab's Avatar
Forum Legend
 
Join Date: Sep 2006
Location: Zürich
Posts: 6,876
Groaned at 311 Times in 208 Posts
Thanked 8,863 Times in 3,144 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: What to look for when buying a house in Switzerland

Quote:
For someone who is not planing to have kids would you say it's pointless buying property?
I'm not sure what kids have to do with it - other than reducing the income of a couple and increasing their outgoings. So it seems to me more logical to buy if you have no kids.

Rental and property to purchase in the greater Zurich area is in short supply. Considering build quality and the income level here, I'm surprised prices aren't even higher, especially when compared to southern England. I can't aford to go back to Blighty - even if i wanted.
Reply With Quote
  #62  
Old 13.12.2006, 19:36
krlock3's Avatar
Forum Legend
 
Join Date: Feb 2006
Location: Zürich
Posts: 2,626
Groaned at 40 Times in 28 Posts
Thanked 1,611 Times in 831 Posts
krlock3 has a reputation beyond reputekrlock3 has a reputation beyond reputekrlock3 has a reputation beyond reputekrlock3 has a reputation beyond reputekrlock3 has a reputation beyond repute
Re: What to look for when buying a house in Switzerland

Hi AbFab (And Lob).

Thanks for the answers and information. Very helpful.

I suppose my point is that in the case that in 20 years, you have paid 20% deposit, and 20% mortgage (although i understand that you can vary this).

How disadvantageous would it be if i wanted to own 80% of the purchase, as opposed to 40%???

Thats the thing. Being English, I like the idea of owning my own home eventually... by owning, i mean, i have bought and paid for it.

Now, I suppose, not paying off the last 20% would be ok, if it brings me some tax advantage. But I would rather own and have paid for more than 40%. Naturally, I understand that hopefully the property value would also appreciate by this time. But, who knows for example what interest rates might be in 20 years. Anyone who says "oh, they cant go up that much, especially in switzerland", i would counter with, "never say never".

So with your particular expertise, what do you think about my idea or wish of paying off a greater percentage of the mortgage?

krlock3



Quote:
At present there is actually a disadvantage in paying off a mortgage, as the interest payments tax deductible and the estimated rentable advantage of owning a house is added to you income as Eigenmietwert on your tax declaration. Though clearly to have no payments is better than making tax-deductible ones.

Over the next 10 years or so Engenmietwert is to be phased out, but with it tax relief on mortgages.


Generally people have two mortgages financing a purchase as follows:
1) 20% of your own dish - could be a pension policy as mentioned above
2) 60% 1st mortgage where the capital is not paid back - just the interest.
3) 20% 2nd mortgage where you pay back the capital and the interest.

I think those are the figures (unless you're Lob of course).

In a country where 80% of the population pay rent (which generally goes up) until the day they die, paying a fixed rate low-interest mortgage paying the interest only seem a good deal. Of course, you can pay off your mortage as and when the capital falls in your lap, but with traditionally low interest rates paying back is not that painful.



Sorry, I'm not Richard, but hopefully this is understandable.

So for CHF1million, you'll need CHf200,000 of your own. If you are a UK home owner, such a figure (£80,000) should be easy with recent property price rises there. CHF600,000 is the interest only mortgage. At 3.7% that's CHF1850 a month then CHF200,000 at a similar rate and paying back the 200,000 over say 20 years.

Of course if you can put 40% down you only need the 1st mortgage. I suggest you check out some Swiss Bank websites for mortgage calculators. There are also many options - as in the UK - with mortgages...
Reply With Quote
  #63  
Old 13.12.2006, 19:41
designer's Avatar
Junior Member
 
Join Date: Dec 2006
Location: Zurich
Posts: 88
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
designer has no particular reputation at present
Re: What to look for when buying a house in Switzerland

Quote:
I'm not sure what kids have to do with it - other than reducing the income of a couple and increasing their outgoings. So it seems to me more logical to buy if you have no kids.
Hmm! Did not think from that angle.Yes you make a good point AbFab. I was thinking that lot or maybe some people buy property with the future of their family in mind. Something they pass on to their kids etc etc.

So would you say that if someone had only 100-500k sitting in the bank then they should invest in a property even if it's worth 1mill+?
Reply With Quote
  #64  
Old 13.12.2006, 19:45
designer's Avatar
Junior Member
 
Join Date: Dec 2006
Location: Zurich
Posts: 88
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
designer has no particular reputation at present
Re: What to look for when buying a house in Switzerland

Quote:
Hi AbFab (And Lob).
I like the idea of owning my own home eventually... by owning, i mean, i have bought and paid for it.

krlock3
We think alike
Reply With Quote
  #65  
Old 13.12.2006, 20:04
AbFab's Avatar
Forum Legend
 
Join Date: Sep 2006
Location: Zürich
Posts: 6,876
Groaned at 311 Times in 208 Posts
Thanked 8,863 Times in 3,144 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: What to look for when buying a house in Switzerland

Quote:
<snip>So would you say that if someone had only 100-500k sitting in the bank then they should invest in a property even if it's worth Mill+?
Only 100-500K!?!

What's the alternative? Pay rent for the rest of your life - and actually get to pay more in rent than you would in mortgage payments. And buy the car of your dreams, which will be worthless in 15 years. And go on a world cruise - which will be finished when it's over...

For me it doesn't seem a hard decision!
Reply With Quote
  #66  
Old 13.12.2006, 20:06
designer's Avatar
Junior Member
 
Join Date: Dec 2006
Location: Zurich
Posts: 88
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
designer has no particular reputation at present
Re: What to look for when buying a house in Switzerland

3.8 Mill. I can invite you all for a party

http://www.homegate.ch/www/ftp/hor/i...15485459_l.jpg
http://www.homegate.ch/www/ftp/hor/i...98904969_l.jpg
http://www.homegate.ch/www/ftp/hor/i...82012102_l.jpg
Reply With Quote
  #67  
Old 13.12.2006, 20:10
evilshell's Avatar
Forum Legend
 
Join Date: Jun 2006
Location: UK, formerly Basel
Posts: 3,362
Groaned at 97 Times in 81 Posts
Thanked 3,074 Times in 1,338 Posts
evilshell has a reputation beyond reputeevilshell has a reputation beyond reputeevilshell has a reputation beyond reputeevilshell has a reputation beyond reputeevilshell has a reputation beyond reputeevilshell has a reputation beyond repute
Re: What to look for when buying a house in Switzerland

Quote:
3 bed semis without garage in Ealing - the Middle of suburbia. Expect to pay £450,000 - that's CHF 1 million
But you really can't compare London with Zurich (even suburban London with suburban Zurich). The cities are in two extremely different classes.
Reply With Quote
  #68  
Old 13.12.2006, 20:23
designer's Avatar
Junior Member
 
Join Date: Dec 2006
Location: Zurich
Posts: 88
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
designer has no particular reputation at present
Re: What to look for when buying a house in Switzerland

Quote:
But you really can't compare London with Zurich (even suburban London with suburban Zurich). The cities are in two extremely different classes.
You mean London is better or worse? I love London but Zurich is a much more stable place to build a quality life. I do miss London though
Reply With Quote
  #69  
Old 13.12.2006, 20:43
evilshell's Avatar
Forum Legend
 
Join Date: Jun 2006
Location: UK, formerly Basel
Posts: 3,362
Groaned at 97 Times in 81 Posts
Thanked 3,074 Times in 1,338 Posts
evilshell has a reputation beyond reputeevilshell has a reputation beyond reputeevilshell has a reputation beyond reputeevilshell has a reputation beyond reputeevilshell has a reputation beyond reputeevilshell has a reputation beyond repute
Re: What to look for when buying a house in Switzerland

Quote:
You mean London is better or worse? I love London but Zurich is a much more stable place to build a quality life. I do miss London though
I mean that London has about as many inhabitants as the entire country of Switzerland does - and the London metro area has about 12.5 million people. The canton of Zurich has 1.2 million and is 1/6 the total of Switzerland.

Size aside, the two cities are so very different it is like comparing a pennyfarthing bicycle with the space shuttle. Or something.
Reply With Quote
  #70  
Old 13.12.2006, 20:47
Lob's Avatar
Lob Lob is offline
Forum Legend
 
Join Date: Nov 2005
Location: -
Posts: 7,816
Groaned at 49 Times in 44 Posts
Thanked 1,973 Times in 1,060 Posts
Blog Entries: 1
Lob has a reputation beyond reputeLob has a reputation beyond reputeLob has a reputation beyond reputeLob has a reputation beyond reputeLob has a reputation beyond repute
Re: What to look for when buying a house in Switzerland

I found the idea that I could drag out paying for my house for something like 100 years to scare me too - and no mortgage for the duration of the payment?

But you get used to it, it's just different.

I have 5 bedrooms of which I own 1% now it's still better than paying someone rent.....and with the slow market, I believe I like not having too much equity tied up in the house - plus interest rates are very low indeed.
Reply With Quote
  #71  
Old 13.12.2006, 22:24
designer's Avatar
Junior Member
 
Join Date: Dec 2006
Location: Zurich
Posts: 88
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
designer has no particular reputation at present
Re: What to look for when buying a house in Switzerland

Lob I just saw your house in the photo gallery. Absolutely stunning Very happy for you mate. Are those three levels for three different owners or are you the master of all three levels?
I think I will try to buy a property within next 3 years (fingers crossed). Do property prices rise here a lot?

P.S- Jagshemash!
Reply With Quote
  #72  
Old 14.12.2006, 10:29
Lob's Avatar
Lob Lob is offline
Forum Legend
 
Join Date: Nov 2005
Location: -
Posts: 7,816
Groaned at 49 Times in 44 Posts
Thanked 1,973 Times in 1,060 Posts
Blog Entries: 1
Lob has a reputation beyond reputeLob has a reputation beyond reputeLob has a reputation beyond reputeLob has a reputation beyond reputeLob has a reputation beyond repute
Re: What to look for when buying a house in Switzerland

There are 4 levels I'd like to think I am master of all of them but my dogs are somewhat of a different opinion

House-based inflation is practivally non-existent.
Reply With Quote
  #73  
Old 14.12.2006, 10:52
Spanky's Avatar
Member
 
Join Date: Oct 2006
Location: Kt. Züri
Posts: 109
Groaned at 0 Times in 0 Posts
Thanked 87 Times in 42 Posts
Spanky has no particular reputation at present
Re: What to look for when buying a house in Switzerland

Quote:
Do be prepared to project-manage and be absolutely picky and specific with everything - I have a shower on a wall that I assumed it would not be on, for example, as it was completely logical to have it on the other way - no great shakes really but do go into the detail.

Gardeners are the absolute worst people I've dealt with. Six months of mud in my new garden and only the threat of not paying for things got the bugger moving.

Best by far was the electrician - a Macedonia chap with English girlfriend mind you - and the electrical planner was also very helpful.

Most miserable t*sser award went to the tiling fella. Did his job OK, don't get me wrong - but his miserable mug will stick with me for ever
A suggestion for those building or renovating

My wife and I bought a 30 year old house this year and stuck in another 100K before we moved in for new windows, insulation and such.

We decided to hire an architect to oversee the work as a sort of a trial period for a substantial renovation project in the next year or two. Working full time (even though I work mostly from home) doesn't really leave enough time for keeping on people's backs and the inevitable chasing up that results.

Possibly stating the bleeding obvious here, but they know what to look out for, understand potential pitfalls and most importantly they know how to deal with contractors. We were lucky enough to have an architect with a good reputation, who put the fear of God into the window company (ha) and had them remanufacture windows which didn't meet his spec. Cost them about Chf 12000, no way I'd have managed that on my own.

He cost about 11% of the total expenditure and that was worth the peace of mind for us, and he will be getting the job for the main work when it comes about.

Just my .02 but if you don't want the aggro (and you don't), give it a thought.
Reply With Quote
  #74  
Old 14.12.2006, 10:55
Forum Legend
 
Join Date: Jun 2006
Location: Appenzell
Posts: 5,607
Groaned at 109 Times in 95 Posts
Thanked 2,221 Times in 1,325 Posts
DaveA has an excellent reputationDaveA has an excellent reputationDaveA has an excellent reputationDaveA has an excellent reputation
Re: What to look for when buying a house in Switzerland

Make sure the architect understands that they are performing the Project Manager role, not just drawing the plans. This is really important, else you could find yourself in the nightmare attempting to negotiate with several groups of subcontractors.

dave

Quote:
A suggestion for those building or renovating

My wife and I bought a 30 year old house this year and stuck in another 100K before we moved in for new windows, insulation and such.

We decided to hire an architect to oversee the work as a sort of a trial period for a substantial renovation project in the next year or two. Working full time (even though I work mostly from home) doesn't really leave enough time for keeping on people's backs and the inevitable chasing up that results.

Possibly stating the bleeding obvious here, but they know what to look out for, understand potential pitfalls and most importantly they know how to deal with contractors. We were lucky enough to have an architect with a good reputation, who put the fear of God into the window company (ha) and had them remanufacture windows which didn't meet his spec. Cost them about Chf 12000, no way I'd have managed that on my own.

He cost about 11% of the total expenditure and that was worth the peace of mind for us, and he will be getting the job for the main work when it comes about.

Just my .02 but if you don't want the aggro (and you don't), give it a thought.
Reply With Quote
  #75  
Old 14.12.2006, 11:16
Forum Legend
 
Join Date: Sep 2006
Location: SZ
Posts: 8,741
Groaned at 19 Times in 18 Posts
Thanked 19,235 Times in 6,160 Posts
meloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond repute
Re: What to look for when buying a house in Switzerland

Quote:
Make sure the architect understands that they are performing the Project Manager role, not just drawing the plans. This is really important, else you could find yourself in the nightmare attempting to negotiate with several groups of subcontractors.

dave
And, make sure your architect actually has some construction experience. I've run into a fair few who draw pretty pictures, but don't know the first thing about real bricks and mortar...

An experienced construction manager, though, is worth his/her weight in gold.
Reply With Quote
  #76  
Old 14.12.2006, 11:17
Spanky's Avatar
Member
 
Join Date: Oct 2006
Location: Kt. Züri
Posts: 109
Groaned at 0 Times in 0 Posts
Thanked 87 Times in 42 Posts
Spanky has no particular reputation at present
Re: What to look for when buying a house in Switzerland

Quote:
Make sure the architect understands that they are performing the Project Manager role, not just drawing the plans. This is really important, else you could find yourself in the nightmare attempting to negotiate with several groups of subcontractors.

dave
Indeed, not a nice place to be.

Minor haggles with contractors were always referred to the architect who dealt with them in his own way (ruthlessly). Of course he knows there's a bigger job in it for him at the end, but it instills confidence seeing him slap down labourers when they make their lame excuses
Reply With Quote
  #77  
Old 14.12.2006, 11:43
Forum Legend
 
Join Date: Jun 2006
Location: Appenzell
Posts: 5,607
Groaned at 109 Times in 95 Posts
Thanked 2,221 Times in 1,325 Posts
DaveA has an excellent reputationDaveA has an excellent reputationDaveA has an excellent reputationDaveA has an excellent reputation
Re: What to look for when buying a house in Switzerland

If you had a good architect would you like to recommend them ?
dave

Quote:
Indeed, not a nice place to be.

Minor haggles with contractors were always referred to the architect who dealt with them in his own way (ruthlessly). Of course he knows there's a bigger job in it for him at the end, but it instills confidence seeing him slap down labourers when they make their lame excuses
Reply With Quote
  #78  
Old 14.12.2006, 12:01
Spanky's Avatar
Member
 
Join Date: Oct 2006
Location: Kt. Züri
Posts: 109
Groaned at 0 Times in 0 Posts
Thanked 87 Times in 42 Posts
Spanky has no particular reputation at present
Re: What to look for when buying a house in Switzerland

Quote:
If you had a good architect would you like to recommend them ?
dave
I would certainly recommend him. He speaks excellent English, has done serious work in the past, and is just a downright decent chap. Winterthur/Zurich region, not sure where else he operates though.
http://www.binder-architekt.ch/
Reply With Quote
  #79  
Old 14.12.2006, 12:13
Forum Legend
 
Join Date: Jun 2006
Location: Appenzell
Posts: 5,607
Groaned at 109 Times in 95 Posts
Thanked 2,221 Times in 1,325 Posts
DaveA has an excellent reputationDaveA has an excellent reputationDaveA has an excellent reputationDaveA has an excellent reputation
Re: What to look for when buying a house in Switzerland

There are no pockets in a shroud.
dave


Quote:
Only 100-500K!?!

What's the alternative? Pay rent for the rest of your life - and actually get to pay more in rent than you would in mortgage payments. And buy the car of your dreams, which will be worthless in 15 years. And go on a world cruise - which will be finished when it's over...

For me it doesn't seem a hard decision!
Reply With Quote
  #80  
Old 14.12.2006, 12:32
krlock3's Avatar
Forum Legend
 
Join Date: Feb 2006
Location: Zürich
Posts: 2,626
Groaned at 40 Times in 28 Posts
Thanked 1,611 Times in 831 Posts
krlock3 has a reputation beyond reputekrlock3 has a reputation beyond reputekrlock3 has a reputation beyond reputekrlock3 has a reputation beyond reputekrlock3 has a reputation beyond repute
Re: What to look for when buying a house in Switzerland

yes, lets start talking in riddles.
Reply With Quote
Reply




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



All times are GMT +2. The time now is 06:26.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0