Many people dream of buying real estate. This dream is within reach in 2019 thanks to the low Swiss mortgage rate of fixed mortgages. "Focus" shows how castles in the air can become your own four walls.
A real estate purchase requires at least 20 percent equity capital despite a loan from a financial services provider. In addition to savings, securities and loans, this can be made up of inheritance benefits or money from the pension fund or the 3rd pillar. Composing the pillar. Since the purchase and notary fees are incurred when acquiring real estate, the potential owner must also have sufficient equity reserves and annually recurring costs must also be taken into account. These costs amount to about six percent of the purchase price. The second mortgage must be repaid within 20 years, taking into account the increase in interest rates. At the moment, Switzerland has a record low when it comes to mortgage rates. Fixed-rate mortgages with a five-year term were lower than ever at the beginning of the year. This now also affects long-term fixed-rate mortgages, which now average only 1.345 percent. Thus, the hurdle to buy a property is smaller.
Avoid cost traps
In addition to the repayment of the loan, long-term costs such as conversion and renovation costs should not be neglected. The renewal of floors and walls are usually due after 20 years at the latest. This accounts for 10 to 20 percent of the original investment costs. A few years later it is necessary to invest in the renovation of sanitary services, heating or the roof. It is also not allowed to rent out the property if the financing of the property has taken money from the pension fund, the vested benefits account or the pillar 3a. Those who sell their property at short notice out of financial necessity often receive less than they originally paid for it.
At the beginning of the year, five-year fixed-rate mortgages were at an all-time low.
It's worth getting additional financing offers, a second viewing appointment or a real estate appraisal. These steps ultimately make it possible to secure the purchase well and avoid hassles and expenses, advises real estate agent L. Meier. He is of the opinion: "If you want to have your own four walls, you can't put your head through the wall!"
Costs of own four walls
As a general rule, the closer the property borders to the city, the more popular and expensive it is. The Zurich region is still an expensive place to live. On average, one pays 13,000 francs per square meter of apartment here. The rural areas of Lucerne and Solothurn are more affordable: Here, an apartment square meter can be bought for 4,000 francs. Apart from that, Bern and Valais have the most vacant properties. This is due to the fact that prices in the city are too expensive and the countryside lacks infrastructure depending on the location.
Who looks for a more favorable alternative of its real estate dream, which should raus from the German Switzerland and off into the Tessin: In the Maggiatal a house with five to six and a half rooms is available on the average starting from 350'000 Franconia. With the remaining money, Mr. and Mrs. Swiss can refresh their Italian language skills in a language course.
"I wanted financial independence!"
Financial advisor Hakan Cansever has fulfilled his real estate dream. The young man has decided to save his money after his education and invest in a 4.to invest in a 5-room apartment in Dubendorf. Most Zurich residents live on rent due to horrendous purchase prices. In the process, he says, they are not aware that they could have bought a property a long time ago with the money from the rental costs. In addition, the purchased property has a greater savings potential after paying off the mortgage. The property is a safe investment that can generate a reasonable return in the Zurich area. With a real estate purchase can be built up fortune, since land becomes as well known ever more expensive. The amortization is usually lower than the monthly interest rate for a comparable property. The 23-year-old advises not to buy city apartments unless you've just been on "Who Wants to Be a Millionaire?"? " won.
The Zurich region is still an expensive place to live.
Buy or rent?
Buying a property is a big step that should be well thought out. When should the real estate tenant become a buyer? A real estate purchase requires financial security and the long-term servicing of a loan. It is important to have sufficient reserves, as the money saved up is then no longer available for use. The buyer should also be able to finance unexpected expenses such as repairs. With the purchase of a real estate one commits oneself likewise to settling down. Globetrotters are therefore better off with a rented apartment.
Before signing the contract, the buyer should make sure that the property is really what he or she wants. In concrete terms this means: Do the size and interior fittings of the house fit?? What about the infrastructure around the house and future neighbors? The most important question, however, is: Does the purchase price you pay correspond to the value of the house?? This should be assessed by an independent professional to remove all uncertainties. Only in such a way the former castles in the air can become the own four walls.