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  #101  
Old 26.02.2007, 20:48
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Re: What to look for when buying a house in Switzerland

We (sceptics to our cotton socks) were informed that prices in Zug have been increasing 3% on average each year for the past few years - renting seems to cost about 3.5% of the capital value of the property so it would seem to be a no-brainer. Transactions costs are minute - at least in Zug. So pa on 1m:

(Renting = -35,000, appreciation = 0, therefore net cost = -35,000) Buying = -35,000 in interest, add appreciation= 30,000, therefore net cost =-5,000)

All imho natch, dyor, do discuss with your partner/mummy/financal adviser, read all the small print/the value of your currency and property can go down as well as up.............blah, blah, blah.....

Last edited by nicnac; 26.02.2007 at 21:00.
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  #102  
Old 12.03.2007, 18:16
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Re: Buying property

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Hi

Im trying to arrange a meeting with the advisor at the bank, but in the mean time can anybody answer my question, which is...

Is it possible for a foriegner to buy property in Switzerland, and what are the pros and cons of doing so? I am from the UK but am living and working here in Switzerland.

thanks
I am surprised nobody answered this question, but the answer is yes and there are other threads that look at when a foreigner can buy and the pros and cons...
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  #103  
Old 26.03.2007, 14:12
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Can foreigners buy in Zug

Just a quick question. Can foreigners buy property in or around Zug. How long do you have to there before you can???
thanks
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  #104  
Old 27.03.2007, 11:07
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Re: Can foreigners buy in Zug

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Just a quick question. Can foreigners buy property in or around Zug. How long do you have to there before you can???
thanks
Simple, got an EU B permit can buy, with a C irrespective of nationality too. Non-EU can be more tricky...
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  #105  
Old 08.04.2007, 19:18
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Re: [Ins and Outs] Buying Property in Switzerland

If home ownership is 32% does that count all of the ski chalets? I see tons of companies selling them, cheap compared to London.

From looking at those sites it seems buying is very very common
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  #106  
Old 08.04.2007, 19:51
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Re: [Ins and Outs] Buying Property in Switzerland

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If home ownership is 32% does that count all of the ski chalets? I see tons of companies selling them, cheap compared to London.

From looking at those sites it seems buying is very very common
Yes.

Everywhere is cheap compared to London.

The same rules apply with challets. Those advertised often are the ones hard to sell in less sought-after areas. Good 'uns sell quickly by word of mouth...
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  #107  
Old 08.04.2007, 22:00
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Re: [Ins and Outs] Buying Property in Switzerland

Thank you all for this great thread, I've really found it useful.
Pledging pension funds as a way of finding the necessary deposit, has been mentioned here a while ago. Does anyone know if this relates to the current amount in your pension fund-or to the amount you will be pay in over the course of your working life here?
Thank you again,
Chester
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  #108  
Old 09.04.2007, 09:04
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Re: [Ins and Outs] Buying Property in Switzerland

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Thank you all for this great thread, I've really found it useful.
Pledging pension funds as a way of finding the necessary deposit, has been mentioned here a while ago. Does anyone know if this relates to the current amount in your pension fund-or to the amount you will be pay in over the course of your working life here?
Thank you again,
Chester
That depends. There is a three tier pension fund here 1 state, 1 company, 1 private.

I guess that you are referring to the company pension fund in which case the correct answer is the current amount.

HOWEVER, check out using your 3rd pillar as here you can pledge the future amount based on whatever is currently in plus x times 6365 where x is 65 - your current age. If you are 35 and have nothing in then you are talking about 190K which will provide you capital on a property approaching SFr. 1 million.

IF you are talking about your company pension fund then you should check it carefully because it is not the full pot that can be pledged just a part of it. On your pension statement it will state the amount - it is a high percentage but not 100%...

With the state pension you can do nothing other than wait.
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  #109  
Old 09.04.2007, 09:31
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Re: [Ins and Outs] Buying Property in Switzerland

Thank you Richard,

Do you know if any cash deposit of some sort is necessary to get a mortgage. I read earlier that someone had put 5% cash in together with the rest of the deposit (own funds) made up of pledged funds.

Hope you have a good Easter holiday!

Chester
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  #110  
Old 24.05.2007, 19:39
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Re: [Ins and Outs] Buying Property in Switzerland

Regarding pension funds, I've been contributing to a UK pension for 10 years.
Can that amount go towards the deposit or is it locked in the UK now?

As we're moving to Geneva, we're hesitating between buying in Schweiz or in France Voisine where prices are still 40% lower than here. Our budget buys an apartment in Swiss areas yet a lovely spacious house near the CERN facilities. Any views? (Hopefully the question is not too off-topic).
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  #111  
Old 26.06.2007, 15:49
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Re: [Ins and Outs] Buying Property in Switzerland

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That depends. There is a three tier pension fund here 1 state, 1 company, 1 private.

I guess that you are referring to the company pension fund in which case the correct answer is the current amount.

HOWEVER, check out using your 3rd pillar as here you can pledge the future amount based on whatever is currently in plus x times 6365 where x is 65 - your current age. If you are 35 and have nothing in then you are talking about 190K which will provide you capital on a property approaching SFr. 1 million.

IF you are talking about your company pension fund then you should check it carefully because it is not the full pot that can be pledged just a part of it. On your pension statement it will state the amount - it is a high percentage but not 100%...

With the state pension you can do nothing other than wait.

Hi Richard,

I have just been to Raifessen to ask them about the possibility of pledging third pillar payments and the chap there didnt know anything about it. He did say for both second and third pillar it was possible to use amounts already saved. Could you let me know which banks allow pledging third pillars?

Thank you

Chester
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  #112  
Old 08.07.2007, 15:43
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Re: [Ins and Outs] Buying Property in Switzerland - Deposits

Coming up with a deposit can be difficult, you should note that if you have been in Switzerland for some time already you can use your pension as a deposit, either by withdrawing it or pledging it (which means you do not withdraw it and it is simply used as collateral for the loan).

In the first case you have the advantage that this reduces the amount you pay in interest. In the second case, there are advantages that you can still gain tax savings each year if you so choose by "topping up" your pension - you loose this option under the first case and it will cease until the whole amount is repaid (which may be never). The disadvantage is of course that you have to pay interest on this amount as it is only pledged and not actually held by the bank / mortgage provider.
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  #113  
Old 09.07.2007, 08:12
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Re: [Ins and Outs] Buying Property in Switzerland

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Hi Richard,

I have just been to Raifessen to ask them about the possibility of pledging third pillar payments and the chap there didnt know anything about it. He did say for both second and third pillar it was possible to use amounts already saved. Could you let me know which banks allow pledging third pillars?

Thank you

Chester
Hi Chester, all commercial banks will do this. You need to understand that Raiffeisen is not a "proper" bank in this respect - it was put together to serve a purpose and not to make pots of money. By commercial bank I mean one that is without ties or restrictions so UBS, CS, Migros, Kantonal Banks etc

Richard
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  #114  
Old 03.08.2007, 12:00
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Re: [Ins and Outs] Buying Property in Switzerland

Hey, Great thread.
Im new here on the site and have found more information here than anywhere else.

I am currently searchingt to buy in Switzerland and have a few questions :

1) Most of the threads imply that the cash required to buy in Switzerland is 20% deposit - But I am informaed that this really should be 29% as follows :

a) 20% deposit (agreed)
b) 5% Notaires fee ??
c) 4 % tax ??

Are these estimates correct ?

Also, If I sell my "first" swiss house in (say) 5 years time and then buy a second house, does the tax double on the second purchase to 8% ??

Its very difficult to find "real" answers since all of the people I know think buying a property is such a rididulous idea ??

Can anyone help ??
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  #115  
Old 03.08.2007, 12:16
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Re: [Ins and Outs] Buying Property in Switzerland

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Hey, Great thread.
Im new here on the site and have found more information here than anywhere else.

I am currently searchingt to buy in Switzerland and have a few questions :

1) Most of the threads imply that the cash required to buy in Switzerland is 20% deposit - But I am informaed that this really should be 29% as follows :

a) 20% deposit (agreed)
b) 5% Notaires fee ??
c) 4 % tax ??

Are these estimates correct ?

Also, If I sell my "first" swiss house in (say) 5 years time and then buy a second house, does the tax double on the second purchase to 8% ??

Its very difficult to find "real" answers since all of the people I know think buying a property is such a rididulous idea ??

Can anyone help ??
The deposit is "optional" there are other ways. The Notary fee is usually around the 3K and in most cantons is not a percentage of the house value. Tax is something else. This is canton specific and many cantons do not levy any transfer or property tax. Some do and it can be as high as 3.3% - On a million that is worth thinking about...
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  #116  
Old 03.08.2007, 12:20
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Re: [Ins and Outs] Buying Property in Switzerland

Ive found "one or two" properties by "word of mouth".

How easy / difficult is it to "remove tenents". I have found an old property that is being used as 4 appartments and may wish to convert it back into its former single dwelling - Are tenancy rules as strict as they are in France for example, or does change of ownership allow me to remove the persons and "start afresh" ??
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  #117  
Old 03.08.2007, 12:24
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Re: [Ins and Outs] Buying Property in Switzerland

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Ive found "one or two" properties by "word of mouth".

How easy / difficult is it to "remove tenents". I have found an old property that is being used as 4 appartments and may wish to convert it back into its former single dwelling - Are tenancy rules as strict as they are in France for example, or does change of ownership allow me to remove the persons and "start afresh" ??
With a lawyer you can remove tenants but don't expect it to be quick. It all depends on what is in their contracts. Oh and you cannot do the typical German trick of increasing the rent 10% per year until it is so ridiculous that they leave of their own accord...
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  #118  
Old 03.08.2007, 13:52
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Re: [Ins and Outs] Buying Property in Switzerland

How do I go about getting a fair evaluation / Valuation on Property. With so few properties on the market, and also most properties are "word of mouth transactions" (i.e Not listed on the internet) - How do you find out if you are paying "fair market value" ? I have been told that most "word of mouth" sales are usually increased by 10-15% - on the off-chance that it will be accepted? With no comparison prperties it is very difficult to find the actual value of a property
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  #119  
Old 03.08.2007, 15:23
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Re: [Ins and Outs] Buying Property in Switzerland

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How do I go about getting a fair evaluation / Valuation on Property. With so few properties on the market, and also most properties are "word of mouth transactions" (i.e Not listed on the internet) - How do you find out if you are paying "fair market value" ? I have been told that most "word of mouth" sales are usually increased by 10-15% - on the off-chance that it will be accepted? With no comparison prperties it is very difficult to find the actual value of a property
The best way is to see whether the bank will give you a mortgage based on the anticipated sale price. If not then you have an answer. If yes, then you can be fairly certain that the price is right. To be sure to be sure ask for an interest only mortgage with no capital investment.
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  #120  
Old 03.08.2007, 16:25
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Re: [Ins and Outs] Buying Property in Switzerland

Hi Richard,
Sorry to be back so soon, in the UK I have an interest only mortgage no sweat but Ive noticed postbank only have one mortgage type with the amortisation (capital repayment) through a 3a pension. And they want to convert my pension 20% BVG/2nd Pillar giving me a circa 6k tax bill (in Kanton Zurich).

Regarding the tax situation in Kanton Zurich Notary Fee is 2% and Tax is 1% normally split between buyer and vendor. If you convert your 20% through pensions expect to pay between 2 (Schwyz) and 6% (Zurich, Bern) taxes. A charge is more tax efficient.

Raffeissenbank called me today and insisted I had 10% cash on top of my 20% pension and UK property equity!!!! Unbelieveable. So risk averse.

Am now totally at their mercy trying to sort this allout, am still unclear how I can take out insurance for as much as possible and convert as little equity/cash as possible.

Anyone got any tips? My stress levels are affecting my slumber

Last edited by magyir; 03.08.2007 at 16:26. Reason: add info
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