The swiss housing market is considered a source of confusion for the ex-pats moving to Switzerland. House prices vary from the area, and rules around foreign ownership and swiss mortgage can fluster anyone.
Home-ownership ranks in Switzerland are among the lowest in the world; only 37.4 percent of the Swiss population own a home in Switzerland, the lowest being in Geneva and Basel.
Recently, the housing prices in Switzerland have dropped due to the Swiss national bank introducing new regulations to lower household mortgages. Whether selling apartments online in Switzerland or purchasing a house in Switzerland, this article will guide you to make your move to Switzerland easier!
Buying or Renting?
While moving to Switzerland, many expats choose to rent a house due to the slow home buying process. However, renting a house can be a stressful journey as well. In popular areas of the country, the rent is very high as landlords receive a lot of inquiries for each property.
Housing Prices in Switzerland
After the drop in housing prices in 2017, it has started to rise again. Between the years 2000 to 2016, the housing prices of Switzerland were touching the sky with an increase of 80.5 percent! The Swiss national bank decided to introduce strict lending criteria and abandoned its cap against the euro to reduce the investor’s demand.
So how do you find a property to buy in Switzerland? Keep reading to find out!
How to locate a property to purchase in Switzerland?
There is considerably high competition in the rental apartments in Switzerland’s major cities. As in many other countries, the properties are available online through estate agents and portals such as Homegate or Immoscout24. Properties may also get listed in newspapers and property papers. While talking about buying or selling, the property sales move slowly, but in this case, the local knowledge remains an advantage.
So, asking for a professional survey remains very uncommon. The builders are likely to take asking for a survey as a negative remark on their work, but a survey might give you an advance of the severe problems, especially in the old properties.
In most countries, it is also common to pay maintenance of common areas while living in an apartment, however, in Switzerland, even the detached houses also have to pay maintenance for common areas such as private roads, parking lots, etc.
And before making an offer on the property, remember to apply for a mortgage from the bank. A 20 percent deposit is typically necessary, with 10 percent being in cash. This mortgage gets set directly with the lenders or between the mortgage broker and the seller.
There are no general schemes in Switzerland to help you with the costs of buying a property.
It is unlikely to buy a Swiss home if you don’t have at least 20 percent to contribute towards your mortgage. However, some mortgage providers offer lower interest to help people onto the property ladder.
While making an offer on a home in Switzerland, communicate this offer to your seller. In Switzerland, estate agents work for the seller, which means you should take their offer quickly.
If the offer is accepted, a notary takes place. You will need a written agreement that covers the circumstances in which the deposit is forfeited or returned. Your mortgage provider must remain informed of the happenings during this process.
Can a foreigner buy a property in Switzerland?
Switzerland has strict restrictions on foreigners buying properties in Switzerland. Here, you get advised to either hold a Swiss C permit or be an EU or EFTA with a Swiss resident who resides in Switzerland; this allows you to exercise the same rights as the Swiss while buying or selling a property.
Those outside these categories, including non – resident foreigners or workers on a short-term work permit, might not get the same advantages and may have to apply for a licence to purchase, which may differ from person to person.
Finances
In Switzerland, the effective tax burden depends upon numerous factors, including the property’s location. The property transfer is subject to property transfer tax; the purchaser generally pays this.
Holding a property gives rise to a so-called limited tax obligation for the owner. For income tax, the owner gets charged for the right to use the property (known as rental notional)
Some cantons also charge an annual property tax in addition to income and wealth taxes.
Selling a house in Switzerland.
The fees for selling apartments online in Switzerland ranges typically from 3 to 5 % for the seller. If you are using an agency, you would be required to pay a fee of .03% of the selling price. The capital gain tax applies to property sales in Switzerland.
When you sell a Swiss home, you have the disadvantage of informing the buyer of any flaws in the property.
Switzerland consists of some beautiful dream properties. By contacting a member of the estate agents who advertises on the property in Switzerland, you can find your dream property! We hope our article guided you and provided valuable knowledge regarding properties in Switzerland!
