Searching for and successfully purchasing a house or flat.

When searching for a property, you should consider your budget, your situation, the infrastructure and future developments in value in the local area. Bear in mind the property’s condition, the potential costs of renovations and check the land register for any easements or restrictions on planning permissions.

The best time to be a property depends on a variety of factors. The price is determined by supply and demand. In addition, low interest rates on mortgages make purchasing real estate a more attractive prospect and, last but not least, your personal situation is also a decisive factor. It’s important that you take a long-term perspective, anticipate your needs over the years ahead and feel secure both financially and in terms of the property.

When financing the purchase of a house, you will combine a deposit and a mortgage (borrowed capital). Your deposit must cover at least 20 per cent of the purchase price. The remaining 80 per cent can be financed by a mortgage provided you have the required income. This is a question of the affordability of the mortgage, which stipulates that the costs of your accommodation must not exceed one third of your income. You can check this easily with our mortgage calculator. You will also need to bear in mind that notary and land registry fees as well as property transfer tax are incurred when making the purchase, which are usually borne half each by the buyer and seller and cannot be financed with the mortgage or offset against your deposit.

When buying an investment property, you should bear the following points in mind:

1. Location: Make sure to pick a good location with stable demand for rental flats or commercial lettings.
2. Rental yield: Calculate the potential rental yield to be sure of the property’s profitability.
3. Condition of the property: Consider the need for renovations and ongoing costs of maintenance.
4. Questions of tenancy law: Review the tenancy agreements currently in place and the relevant legal frameworks.
5. Financing: Choose a suitable financing strategy, e.g. using a mortgage, and calculate the monthly repayments and tax benefits. Also bear in mind that buying an investment property often requires a deposit significantly larger than 20 per cent of the purchase price. This varies a great deal from lender to lender.
6. Tax aspects: Rental income increases your taxable income, while interest on mortgages, maintenance costs and value-preserving renovations are deductible. Familiarise yourself with the regulations specific to the canton in question.

It’s essential to review these factors carefully to plan out a successful real estate investment.