Hi ! I moved to Switzerland recently and work in Zürich. I am planning to stay in the country and your video was super helpful to understand the process of buying a property. Now I can plan on how much I need to save for the next couple of years in order to have the 20% down payment for a property near Zürich. Thank you so much !!!
Hi, thank you so much for this video. I learned so much. I'm planning to apply for a mortgage to buy an apartment in Geneva. The real estate market is tough and I hope it will work out. Wish me all the best!
Hi - thanks for taking the time do run through the whole process, very informative. You mentioned earlier in the video that the bank will need to see a certificate of a second pillar pension. Is this necessary for the mortgage approval, or is this only necessary if you are going to use your second pillar funds to finance the purchase?
No I don't think it's necessary, but it's part of the documentation that the bank requires to make a decision on whether or not you can afford the mortgage. If you don't provide it (or don't have it) I guess they will pretend you don't have that financial instrument and probably categorize you as a bit less able to pay your debt, but no it should not stop you from having a mortgage.
Great informative video! Out of curiosity, since this may be a cultural practice to some extend, are properties generally listed close to their fair market value in Switzerland? I'd like to know for the purpose of how to proceed when making an offer. I know in Italy it's not uncommon to significantly overvalue properties, which then results in lower offers. I just don't want to offend anyone.
Hello, mmmh the real answer is that I don't know! So, I've been involved in the purchase of 2 apartments, for the first one we managed to get some of the notary fees paid by the seller (consider it a 10k discount), and on the second one we asked for a discount but they couldn't give it to us. So, from these experiences and from my experience having worked a little bit in the construction industry (civil draftman), I can tell you that more or less the price you see on the advertisement is the market price... you can negotiate a bit, but there is not a lot of margin. Now this I would say is for apartments and those which are sold by the person who built the apartment building. Normally you will find someone who has built an apartment building, puts almost all of them to rent, but to get some of the costs for construction back, sells some of the apartment. Those I would say are fairly priced. As a consequence other apartments that are sold my private people that maybe own only one, are also sold at a fair price since they wouldn't compete with the first ones. As far as houses go, I have no idea... also because houses can have very wide prices, and I don't know of all of them have a market price... and also I don't know what happens in other Cantons. I can tell you tough that there are some websites that tell you the average price per meter squared in a specific suburb or city in Switzerland, I would say that's a good benchmark 😀
hi great video. But I have questions could you pls pls answer......... is it really true that we do not have to pay the Debt? only 33% we need to pay ?? but why ?? can you give more insight please
Hi, I am not familiar with the 33% limit on amortisation of the mortgage. Can you explain what happens once the 33% of the loan has been paid (I assume it becomes interest only)? Can you pay more, eg 50% or 65% for better securitisation or to pay less interest? What happens if the value of the property goes up or goes down? What happens if/when you retire? What happens when you die?
I'll try to explain at the best of my knowledge 😁 1. Yes when you paid off your second mortgage (which is the 33% - downpayment) you will remain only with your first mortgage in which you only need to pay interest and no principal. So yes you will continue to only pay interests. 2. Yes you can ask your bank to continue paying down your mortgage. 3. I'm not sure as I've never heard of like "property value going down"... the real estate market in Switzerland is very stable and not very liquid, that means that it's hard to know what's the actual price of your house, and banks usually use the amount you paid to say that's the price of your house. They usually don't do an appreciation unless you ask them to. I'm guessing that if the price should go down they will ask you to refinance and basically repay this 33% again just like you did when you bought your house, but this is just speculation as usually as long as you pay your mortgage or interests nobody tells you anything (my parents had an apartment during 2008 and the Bank didn't tell them anything as long as they were paying their mortgage). For the Bank to start worrying the price should drop by 33% and that's fairly unlikely. 3. If you die the house (and mortgage) goes to your heirs just as if they bought the house, the Bank could re-evaluate the mortgage conditions once the mortgage term expires (a mortgage term usually lasts 10 years and then you have to renew it). 4. When you retire the Bank waits for the mortgage term to expire and they re-evaluate the mortgage conditions, if you don't have enough income for them to be sure you can continue paying your mortgage / interest, they may ask you to give them more money to cover let's say 50% of the house price, or to sell it, or to go to another bank (this is not a usual situation though, cause if you worked a lot of years in Switzerland you will be fairly well covered during retirement, even with just the social pension).
As an American tourist interested to purchase a property in Switzerland could I get those very low interest rate ask mortgage or it needed to be cash? Also what are property tax ? In US we must pay annually roughly around 1% ( California).
Mmh someone else asked me a similar question and the honest answer I have is I don't know... especially because it's the US and because of money laundering there are some rules between the US and Switzerland so the best thing to do would just to email UBS, credit suisse or similar to get your answer very quickly. The rates are now around 3% for 10-year fixed, but there are some interesting variable rates at the moment. For the property tax there is none but, the Munucipality will calculate the rental value of your property and pretend like that's money that you earn, but since you would be a tourist I don't know how you could pay income tax in Switzerlnad... only resident people pay it as far as I know. So again, asking directly to a bank is your best bet! Good luck thought and let me know how it goes
Super Video! I have been searching for information like that. There is a way to contact you if we want to invest in Real State in Switzerland? Do u work giving consultancies to get a Hause? Thanks in advance.
No... I'm sorry I really can't give advice since I don't have any license in Switzerland. You can check out one of my last videos though, where I talk about the last apartment we bought, there I put the linkedin account of a real estate agent who might help you!
Wow! It is different than most anywhere else. First few minutes in. My cnnxn has allowed (traveling...). I saw “holiday homes for foreigners” ads in bank windows when I last visited (2021). Didnt know foreigners were allowed to buy at all! Now I get it in tne first few minutes, I THINK. If you don’t pay cash fir the full home price, your mortgage outlives you and the home belongs to the BANK. If m very cynical but that’s brilliant fir them if that’s how it works. (Unless you can pass the home down to children or others, family in particular?). I’d never seen home sale adverts in. BANK WINDOWS, just in real estate offfices or real estate businesses online. US banks, for example, don’t really want to foreclose in homes and auction them off....but that’s bc they prefer payment on a 15 or 30 year mortgage like clockwork.
You do pass them out to children and family, just like any other asset you have. The house is legally yours, but yeah you have a loan with the bank which goes to the heirs. Of course you can also pay off your debt, usually people pay off their debt on at least their first home, just to be safe during pension if anything should go bad, or at least leave just a small fraction of the original loan.
Hey, sorry for the late reply but I thought I already answered to this question ahah! So, no I don't think it's too possible to have a NET margin of 4% a year without any leverage from the mortgage. The houses in Switzerland simply cost (mainly due to the cost of the land) this means that for a 14'400 GROSS rent you gonna spend at least 350'00 to 450'000 francs, meaning it's a 4.11% GROSS gain. If you factor in a 1% yearly for maintenance (which shows in the long term) you gonna end up with a 3% gain a year on a 350'000 investment (if you are lucky enough to find a property for 350k). On this, we still are excluding income taxes (around 10% to 15% on your gross rent). So no, 4% is a lot... if you asked me 2% to 3% maybe, but 4% is just a lot without a little leverage from the mortgage!
@@divityfinance Ok, then its not as profitable as another countries, since it will only cover the inflation ... I will do the classic portfolio : 40% Euro Shares 40% International stock markets 10% Emerging stock markets 10% Global government bonds index Im an orthodontist and my wife is a doctor, we are both young (30), making about 20k francs per month and saving about 10k per month.
Yes, it is possible but hard to do as the market is very hot now and so hard to find any bargains. A few years ago, I bought a place which I rented out for >6% margin.
I am really curious about how much taxes do you pay on that apartment? I mean taxes on rent income, wealth, city, canton and federal taxes. That would be an interesting video.
It's hard to do that because it doesn't depend on the apartment itself, it depends on how much my parents make for a living, how many expenses they can deduct and all that! I can tell you that I expect it to be around 15% (something like that) of the total net profit!
Thanks for the good video and good information 👍🏼 Just want ask you after you pay the 13% how works after that the amortization ? I don’t really get it🥶 Keep the good work👍🏼
It doesn't work because there is none... you can pass the debt onto your children! You just have to pay for the interests that's all! Of course, this can also depend on the bank and you specifically because the bank may just say "we want you to pay it down in 100 years". But in general, this doesn't happen and the debt goes on to the kids! If you want you can choose to pay it down anyways, but you don't have to!
@@divityfinance Hello thanks for the video! It is also not clear for me what happens after you have paid the 13% over 10 years. You said "there is none" then you "pass the debt to your children" or we pay the "interest that is all". So you still have to pay something after the 13% is payed back right? can you give us a example of what could be the fee to pay back after the amortization please? I also did a quick calculation in UBS as you suggested, and I saw "Maintenance and ancillary costs" fee, is that something you continue to pay after? thanks
@@Chris-mr8qm I'm so sorry for the extremely late reply but I did not see your comments... thank you youtube for the good notification system ahah After you pay the 13% you will reach a total of 33% payment on your house, meaning you still have a loan of 66% on that house, basically if your house is worth 100k, 33k will be yours and 66k will be from the bank. After you have paid the entire 33% (the 20% downpayment + the 13% amortization) you will only have to pay the interest rate on the loan, so the 66%, or the 66k of the example above. Meaning: if your interest rate is 1%, after you paid the 13% you will only pay 1% of the 66%, or in the example above, 1% of 66k so 660 francs a year. The maintenance cost you see on the UBS website is just the average annual cost that you expect to have on the house (you gotta pay the bills, if something breaks you gotta repair it, you gotta maintain the garden and so on) all of that can be averaged out to about 1% a year on a long term basis (of course for the fist 10 years you probably won't pay that 1%, after 10 years you might start to have to do some repairs and some general maintenance). So that 1% you see there for maintenance is just an average annual maintenance expense, but you of course don't have to pay it to the bank... again: the 1% is just an estimate, that's actually very high if you think about it... maybe for a house is reasonable, but for a small apartment without a garden it's not so reasonable I think, so you can input whatever you want in that parameter actually, or whatever you think might be the maintenance cost of your property!
Unfortunately I cannot tell you the answer because I simply do not know it! What I do think tho is that I it is going to be very hard trying to find the bank that will give you a loan without being a swiss resident. Even just buy not having a C permit or a Swiss citizenship is a drawback! Unless of you course you have big money ahah!
@@nuheilah mmmh no not really, with the fact that you "only" need a 20% and half of that can be you pension I wouldn't say that only millionaires can afford a house. But yes, unfortunately you have to be quite wealthy to afford a house in Switzerland, so much so that only about 35% of Swiss citizens own their house, the others live renting. In the US I believe it's around 60% or so, but I don't remember the exact number... but you can see the difference, in Italy for example is even higher than that.
@@divityfinance Thank you. And what in case you sell the apartment? Shall you pay the rest of the debt and keep the difference for yourself? How does this work? And also what is the interest rate after fixed 10 years? No one needs to pay 1% annually and suddenly switch to 5% floating to 10% I think ;))) Thank you for your video’s!
@sofia: I’d like these questions answered as well. It’s much more complicated in Switzerland but I’m kicking myself for assuming that anyone not a citizen cannot purchase a home (apt or house), in Switzerland. But I saw ads for “holiday homes fir sale for foreign nationals,” when I was in Switzerland in 2021. I was stunned. Prices were also about ten times lower than I’d been told is “average.” These were nice homes near but not in major cities within Switzerland. And all of Europe is close by and accessible (shop for clothing in Milan or on holiday to Rome, to spend less butget nice things, eg). Swisscomolain that all is too expensive there but it’s seeming not more than in London, NYC, SF, Paris etc.
It is difficult to say because I do not exactly know how much my parents pay in taxes! What I can tell you is that I think the taxes will go at around a 15% more or less (I guess) so the profit margin is around 500-650 francs a month (very rougly).
@@divityfinance Many thanks for your answer however that's the same margin you quoted one your video before I asked the question. For us would be budding Swiss investors in the Swiss market it would be interesting to know the actual tax rates affecting ur profit on return of investment so we can gauge the actual income this may generate. Very informative video by the way and keep up the good work mate.
@@ctacte8377 Well not really ahah it depends on the laws in Switzerland. Finma is the regulatory institution and then banks can make other strict rules! But that's simply how they decided it should work.
@@ashy6996 Well we have a fixed rate for 10 years so I cannot really tell you exactly how much you would get, also because it depends on you personally but! And this is a nice but, you have a website called "comparis" that quotes the rates of different bank and even an average. Just type on google "Swiss mortgage rates Comparis" and the first link should bring you there. Then go to the UBS website, just type in google "Swiss morgage calculator UBS" the first link should bring you there. Insert the specifics of your property then click calulcate. UBS will give you a standard rate that can be changed, just type in the rate that seems more appropriate to you based on your research with comparis, and you will get how much the house will cost you and how much is your probable profit margin (you should know the rent for that property). Unfortunately I cannot even tell you how much it would be our profit margin if we bought the apartment today because it simply depends on the bank, I could go to the bank and ask but I don't think I would get an answer ahah but the calculation made like this is exactly what I did to decide if the investment was ok or not, and it worked! The profit margin depends a lot on the property and on the location! So it's even useless if I tell you how much is my profit margin (even tho I said it).
No one seems to know about this bizarre law that can be devastating to a home buyer in Switzerland. Here is our story. In the purchase agreement, the buyer and seller agreed that the seller would pay the tax on her profit. However, the Notary did not make us, the buyer, aware that, if the Kanton can’t collect the tax from the seller, the BUYER has to pay this tax on the seller’s profit. Yes, your read that right: the buyer can be forced to pay tax on the profit of the seller! In our case, the Kanton Solothurn is unable to collect 35,000 CHF from the seller. So, the Kanton has put a lien on OUR house and is demanding payment from us with interest and under the threat of taking our house. (According to Art. 818 ZGB Schweizerisches Zivilgesetzbuch mom 10. December 1907; SR 210) Lesson: When you buy real property, make sure the purchase agreement includes the withholding for this tax (Grundstückgewinnsteuer). Especially in the German-speaking Kantons, few have an automatic withholding procedure in place.
Thank you so much for this story! Yes indeed it is crucial to read the contract and ask for it in advance (as a PDF) and read it slowly, carefully and patiently! Thank you again, I did not know about this, really interesting and worrying at the same time...
Ma....vai A Milano ....con 100milla compri 2 apartamenti e prendi 1600-2000 euro/mese. Katastrophe!!! Forse Cuando Hai 300 ani sei peoprietario , Boss! Katastrophe!😂😂😂😂😂😂😂
Sorry I don't understand your comment... could you elaborate a little bit more on it? The house market in Switzerland is much different from Italy, maybe you did not watch the entire video also the mortgage is much different than Italy... anyways thanks for the comment, maybe we can have a discussion!
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Hi ! I moved to Switzerland recently and work in Zürich. I am planning to stay in the country and your video was super helpful to understand the process of buying a property. Now I can plan on how much I need to save for the next couple of years in order to have the 20% down payment for a property near Zürich. Thank you so much !!!
Crazy rules, that country lives in its own galaxy.
Hi, thank you so much for this video. I learned so much. I'm planning to apply for a mortgage to buy an apartment in Geneva. The real estate market is tough and I hope it will work out. Wish me all the best!
It certainly will work out! Dont worry the path is fairly straightforward and making mistakes is practically impossible!
Thank you very much for the video, good job! You help a lot of people going through this mortgage "ordeal" :))
Very nice work!!! Bravo
Hi - thanks for taking the time do run through the whole process, very informative. You mentioned earlier in the video that the bank will need to see a certificate of a second pillar pension. Is this necessary for the mortgage approval, or is this only necessary if you are going to use your second pillar funds to finance the purchase?
No I don't think it's necessary, but it's part of the documentation that the bank requires to make a decision on whether or not you can afford the mortgage. If you don't provide it (or don't have it) I guess they will pretend you don't have that financial instrument and probably categorize you as a bit less able to pay your debt, but no it should not stop you from having a mortgage.
Great informative video! Out of curiosity, since this may be a cultural practice to some extend, are properties generally listed close to their fair market value in Switzerland? I'd like to know for the purpose of how to proceed when making an offer. I know in Italy it's not uncommon to significantly overvalue properties, which then results in lower offers. I just don't want to offend anyone.
Hello, mmmh the real answer is that I don't know! So, I've been involved in the purchase of 2 apartments, for the first one we managed to get some of the notary fees paid by the seller (consider it a 10k discount), and on the second one we asked for a discount but they couldn't give it to us. So, from these experiences and from my experience having worked a little bit in the construction industry (civil draftman), I can tell you that more or less the price you see on the advertisement is the market price... you can negotiate a bit, but there is not a lot of margin. Now this I would say is for apartments and those which are sold by the person who built the apartment building. Normally you will find someone who has built an apartment building, puts almost all of them to rent, but to get some of the costs for construction back, sells some of the apartment. Those I would say are fairly priced. As a consequence other apartments that are sold my private people that maybe own only one, are also sold at a fair price since they wouldn't compete with the first ones. As far as houses go, I have no idea... also because houses can have very wide prices, and I don't know of all of them have a market price... and also I don't know what happens in other Cantons. I can tell you tough that there are some websites that tell you the average price per meter squared in a specific suburb or city in Switzerland, I would say that's a good benchmark 😀
Thanks! In the process right now. Ver6 useful!
That's great! Congratulations! Where did you buy the house (which canton)! How is everything going? Keep me updated !!!
hi great video. But I have questions could you pls pls answer......... is it really true that we do not have to pay the Debt? only 33% we need to pay ?? but why ?? can you give more insight please
Hi, I am not familiar with the 33% limit on amortisation of the mortgage. Can you explain what happens once the 33% of the loan has been paid (I assume it becomes interest only)? Can you pay more, eg 50% or 65% for better securitisation or to pay less interest? What happens if the value of the property goes up or goes down? What happens if/when you retire? What happens when you die?
I'll try to explain at the best of my knowledge 😁
1. Yes when you paid off your second mortgage (which is the 33% - downpayment) you will remain only with your first mortgage in which you only need to pay interest and no principal. So yes you will continue to only pay interests.
2. Yes you can ask your bank to continue paying down your mortgage.
3. I'm not sure as I've never heard of like "property value going down"... the real estate market in Switzerland is very stable and not very liquid, that means that it's hard to know what's the actual price of your house, and banks usually use the amount you paid to say that's the price of your house. They usually don't do an appreciation unless you ask them to. I'm guessing that if the price should go down they will ask you to refinance and basically repay this 33% again just like you did when you bought your house, but this is just speculation as usually as long as you pay your mortgage or interests nobody tells you anything (my parents had an apartment during 2008 and the Bank didn't tell them anything as long as they were paying their mortgage). For the Bank to start worrying the price should drop by 33% and that's fairly unlikely.
3. If you die the house (and mortgage) goes to your heirs just as if they bought the house, the Bank could re-evaluate the mortgage conditions once the mortgage term expires (a mortgage term usually lasts 10 years and then you have to renew it).
4. When you retire the Bank waits for the mortgage term to expire and they re-evaluate the mortgage conditions, if you don't have enough income for them to be sure you can continue paying your mortgage / interest, they may ask you to give them more money to cover let's say 50% of the house price, or to sell it, or to go to another bank (this is not a usual situation though, cause if you worked a lot of years in Switzerland you will be fairly well covered during retirement, even with just the social pension).
As an American tourist interested to purchase a property in Switzerland could I get those very low interest rate ask mortgage or it needed to be cash? Also what are property tax ? In US we must pay annually roughly around 1% ( California).
Mmh someone else asked me a similar question and the honest answer I have is I don't know... especially because it's the US and because of money laundering there are some rules between the US and Switzerland so the best thing to do would just to email UBS, credit suisse or similar to get your answer very quickly. The rates are now around 3% for 10-year fixed, but there are some interesting variable rates at the moment. For the property tax there is none but, the Munucipality will calculate the rental value of your property and pretend like that's money that you earn, but since you would be a tourist I don't know how you could pay income tax in Switzerlnad... only resident people pay it as far as I know. So again, asking directly to a bank is your best bet! Good luck thought and let me know how it goes
Hi, thanks a lot. How can i reach you, would be grateful if you give some advice with market analysis in Switzerland
Thank you for the great tips!!
This is brilliant - thank you!!!!
Nice video.👌 Thanks for sharing,Stay Blessed.🥰
Super Video! I have been searching for information like that. There is a way to contact you if we want to invest in Real State in Switzerland? Do u work giving consultancies to get a Hause? Thanks in advance.
No... I'm sorry I really can't give advice since I don't have any license in Switzerland. You can check out one of my last videos though, where I talk about the last apartment we bought, there I put the linkedin account of a real estate agent who might help you!
@@divityfinance Super!! Thanks a lot. Your videos have been really helfull to me. Greatings!
Very informative video, thanks!
Thank you so much for the great video
Your the man
Hi, I was wondering what happens with the 1st mortgage that is voluntary to pay back. Does that collect interest?
Nevermind I found the answer in a different comment. 😊
Video molto interessante!
Domanda off topic: dove hai trovato lo screensaver del computer con la cittä stilizzata?
Sicuramente l'ho trovata su google immagini, ma sinceramente non ricordo come l'ho trovata!
Wow! It is different than most anywhere else. First few minutes in. My cnnxn has allowed (traveling...). I saw “holiday homes for foreigners” ads in bank windows when I last visited (2021). Didnt know foreigners were allowed to buy at all! Now I get it in tne first few minutes, I THINK. If you don’t pay cash fir the full home price, your mortgage outlives you and the home belongs to the BANK. If m very cynical but that’s brilliant fir them if that’s how it works. (Unless you can pass the home down to children or others, family in particular?). I’d never seen home sale adverts in. BANK WINDOWS, just in real estate offfices or real estate businesses online. US banks, for example, don’t really want to foreclose in homes and auction them off....but that’s bc they prefer payment on a 15 or 30 year mortgage like clockwork.
You do pass them out to children and family, just like any other asset you have. The house is legally yours, but yeah you have a loan with the bank which goes to the heirs. Of course you can also pay off your debt, usually people pay off their debt on at least their first home, just to be safe during pension if anything should go bad, or at least leave just a small fraction of the original loan.
Great Video!
Hmmm... I wonder how your interest rate for the mortgage is affected by the inflation rate of -1.3% in Switzerland.
It gets affected by going down as low as 1% ahah
Do you think its possible to get atleast 4% per year net margin buying a house as investment in Switzerland and renting it? I mean, without mortgage.
Hey, sorry for the late reply but I thought I already answered to this question ahah! So, no I don't think it's too possible to have a NET margin of 4% a year without any leverage from the mortgage. The houses in Switzerland simply cost (mainly due to the cost of the land) this means that for a 14'400 GROSS rent you gonna spend at least 350'00 to 450'000 francs, meaning it's a 4.11% GROSS gain. If you factor in a 1% yearly for maintenance (which shows in the long term) you gonna end up with a 3% gain a year on a 350'000 investment (if you are lucky enough to find a property for 350k). On this, we still are excluding income taxes (around 10% to 15% on your gross rent). So no, 4% is a lot... if you asked me 2% to 3% maybe, but 4% is just a lot without a little leverage from the mortgage!
@@divityfinance Ok, then its not as profitable as another countries, since it will only cover the inflation ... I will do the classic portfolio :
40% Euro Shares
40% International stock markets
10% Emerging stock markets
10% Global government bonds index
Im an orthodontist and my wife is a doctor, we are both young (30), making about 20k francs per month and saving about 10k per month.
@@51THEUFO That's a good portfolio, maybe think about some gold!
Yes, it is possible but hard to do as the market is very hot now and so hard to find any bargains. A few years ago, I bought a place which I rented out for >6% margin.
ok , if i buy house or aparment doese this help me in future like be history of me like i buy car or furniture
Sorry I did not understand your question...
its help me to get resident or live in country
ok if i am not from swiss how can i buy by monthly payment does they need my salary in from my country
I don't think you can get a loan if you don't live in Switzerland! If you do live in Switzerland and you are not Swiss you just need your permit!
Nice video
I am really curious about how much taxes do you pay on that apartment? I mean taxes on rent income, wealth, city, canton and federal taxes.
That would be an interesting video.
It's hard to do that because it doesn't depend on the apartment itself, it depends on how much my parents make for a living, how many expenses they can deduct and all that! I can tell you that I expect it to be around 15% (something like that) of the total net profit!
Thanks for the good video and good information 👍🏼
Just want ask you after you pay the 13% how works after that the amortization ?
I don’t really get it🥶
Keep the good work👍🏼
It doesn't work because there is none... you can pass the debt onto your children! You just have to pay for the interests that's all! Of course, this can also depend on the bank and you specifically because the bank may just say "we want you to pay it down in 100 years". But in general, this doesn't happen and the debt goes on to the kids!
If you want you can choose to pay it down anyways, but you don't have to!
@@divityfinance Hello thanks for the video! It is also not clear for me what happens after you have paid the 13% over 10 years. You said "there is none" then you "pass the debt to your children" or we pay the "interest that is all". So you still have to pay something after the 13% is payed back right? can you give us a example of what could be the fee to pay back after the amortization please?
I also did a quick calculation in UBS as you suggested, and I saw "Maintenance and ancillary costs" fee, is that something you continue to pay after? thanks
@@Chris-mr8qm I'm so sorry for the extremely late reply but I did not see your comments... thank you youtube for the good notification system ahah
After you pay the 13% you will reach a total of 33% payment on your house, meaning you still have a loan of 66% on that house, basically if your house is worth 100k, 33k will be yours and 66k will be from the bank. After you have paid the entire 33% (the 20% downpayment + the 13% amortization) you will only have to pay the interest rate on the loan, so the 66%, or the 66k of the example above. Meaning: if your interest rate is 1%, after you paid the 13% you will only pay 1% of the 66%, or in the example above, 1% of 66k so 660 francs a year.
The maintenance cost you see on the UBS website is just the average annual cost that you expect to have on the house (you gotta pay the bills, if something breaks you gotta repair it, you gotta maintain the garden and so on) all of that can be averaged out to about 1% a year on a long term basis (of course for the fist 10 years you probably won't pay that 1%, after 10 years you might start to have to do some repairs and some general maintenance). So that 1% you see there for maintenance is just an average annual maintenance expense, but you of course don't have to pay it to the bank... again: the 1% is just an estimate, that's actually very high if you think about it... maybe for a house is reasonable, but for a small apartment without a garden it's not so reasonable I think, so you can input whatever you want in that parameter actually, or whatever you think might be the maintenance cost of your property!
@@divityfinance thanks a lot! It's all clear now :) :)
Does this process apply for Non EU nationals who don't have residency in Switzerland ?
Unfortunately I cannot tell you the answer because I simply do not know it! What I do think tho is that I it is going to be very hard trying to find the bank that will give you a loan without being a swiss resident. Even just buy not having a C permit or a Swiss citizenship is a drawback! Unless of you course you have big money ahah!
@@divityfinance So only millionaires can buy a property in Switzerland in that case
@@nuheilah mmmh no not really, with the fact that you "only" need a 20% and half of that can be you pension I wouldn't say that only millionaires can afford a house. But yes, unfortunately you have to be quite wealthy to afford a house in Switzerland, so much so that only about 35% of Swiss citizens own their house, the others live renting. In the US I believe it's around 60% or so, but I don't remember the exact number... but you can see the difference, in Italy for example is even higher than that.
@@divityfinance Exactly ! Thank u for responding
what happens after the 10 years? or 15 years? do you stop paying?
You continue paying the interest but you stop paying down the debt.
@@divityfinance Thank you. And what in case you sell the apartment? Shall you pay the rest of the debt and keep the difference for yourself? How does this work?
And also what is the interest rate after fixed 10 years? No one needs to pay 1% annually and suddenly switch to 5% floating to 10% I think ;)))
Thank you for your video’s!
@sofia: I’d like these questions answered as well. It’s much more complicated in Switzerland but I’m kicking myself for assuming that anyone not a citizen cannot purchase a home (apt or house), in Switzerland. But I saw ads for “holiday homes fir sale for foreign nationals,” when I was in Switzerland in 2021. I was stunned. Prices were also about ten times lower than I’d been told is “average.” These were nice homes near but not in major cities within Switzerland. And all of Europe is close by and accessible (shop for clothing in Milan or on holiday to Rome, to spend less butget nice things, eg). Swisscomolain that all is too expensive there but it’s seeming not more than in London, NYC, SF, Paris etc.
Excatly , But you can continue paying also the debt ( after you have played 20+ 15% )
Grazie 1000000 dottore
hey guy, its the easiest thing to buy.. and a tipp for u dario, pay back
What do you mean?
How much is your profit margin after you pay the taxes?
It is difficult to say because I do not exactly know how much my parents pay in taxes! What I can tell you is that I think the taxes will go at around a 15% more or less (I guess) so the profit margin is around 500-650 francs a month (very rougly).
@@divityfinance Many thanks for your answer however that's the same margin you quoted one your video before I asked the question. For us would be budding Swiss investors in the Swiss market it would be interesting to know the actual tax rates affecting ur profit on return of investment so we can gauge the actual income this may generate. Very informative video by the way and keep up the good work mate.
Can you explain why you pay only 33% of the loan ?
@@ctacte8377 Well not really ahah it depends on the laws in Switzerland. Finma is the regulatory institution and then banks can make other strict rules! But that's simply how they decided it should work.
@@ashy6996 Well we have a fixed rate for 10 years so I cannot really tell you exactly how much you would get, also because it depends on you personally but! And this is a nice but, you have a website called "comparis" that quotes the rates of different bank and even an average. Just type on google "Swiss mortgage rates Comparis" and the first link should bring you there. Then go to the UBS website, just type in google "Swiss morgage calculator UBS" the first link should bring you there. Insert the specifics of your property then click calulcate. UBS will give you a standard rate that can be changed, just type in the rate that seems more appropriate to you based on your research with comparis, and you will get how much the house will cost you and how much is your probable profit margin (you should know the rent for that property).
Unfortunately I cannot even tell you how much it would be our profit margin if we bought the apartment today because it simply depends on the bank, I could go to the bank and ask but I don't think I would get an answer ahah but the calculation made like this is exactly what I did to decide if the investment was ok or not, and it worked! The profit margin depends a lot on the property and on the location! So it's even useless if I tell you how much is my profit margin (even tho I said it).
No one seems to know about this bizarre law that can be devastating to a home buyer in Switzerland. Here is our story.
In the purchase agreement, the buyer and seller agreed that the seller would pay the tax on her profit. However, the Notary did not make us, the buyer, aware that, if the Kanton can’t collect the tax from the seller, the BUYER has to pay this tax on the seller’s profit. Yes, your read that right: the buyer can be forced to pay tax on the profit of the seller!
In our case, the Kanton Solothurn is unable to collect 35,000 CHF from the seller. So, the Kanton has put a lien on OUR house and is demanding payment from us with interest and under the threat of taking our house. (According to Art. 818 ZGB Schweizerisches Zivilgesetzbuch mom 10. December 1907; SR 210)
Lesson: When you buy real property, make sure the purchase agreement includes the withholding for this tax (Grundstückgewinnsteuer). Especially in the German-speaking Kantons, few have an automatic withholding procedure in place.
Thank you so much for this story! Yes indeed it is crucial to read the contract and ask for it in advance (as a PDF) and read it slowly, carefully and patiently! Thank you again, I did not know about this, really interesting and worrying at the same time...
Hi
Odakle si rodom?
Švajcarska :-)
buy a home in switzerland
I want to talk u plz
just hit me on insta ;)
Ma....vai A Milano ....con 100milla compri 2 apartamenti e prendi 1600-2000 euro/mese. Katastrophe!!! Forse Cuando Hai 300 ani sei peoprietario , Boss! Katastrophe!😂😂😂😂😂😂😂
Sorry I don't understand your comment... could you elaborate a little bit more on it? The house market in Switzerland is much different from Italy, maybe you did not watch the entire video also the mortgage is much different than Italy... anyways thanks for the comment, maybe we can have a discussion!
Too long
yeah I know... unfortunately the process of buying a house is too long as well ahah took almost a month for us!