Are you thinking of purchasing a property? Find out here what questions you should ask beforehand.
Are you wondering whether to invest your capital in a property for the long term? Owning your own home offers stability and the opportunity to put down roots. But it can also be a tie that restricts your flexibility. Consider whether you are ready to make your dream of owning your own home a reality or whether you would prefer to invest your money in alternative investments to begin with.
If you decide to buy, you need to find a suitable property. Think carefully about how your ideal home should look.
Criteria for your search could be:
When you find a potential property, check it thoroughly:
Make sure you answer these questions at the latest when you go to view the property and ask the seller to provide the following sales documents:
You must raise at least 20 percent of the property’s purchase price yourself. At least 10 percent of the purchase price must be “real” capital, meaning it must come from somewhere other than the 2nd pillar (anticipated withdrawal and pledging of pension funds). You can cover the remaining amount with a mortgage.
Just as important as capital is the question of affordability. This determines whether or not you can afford your property in the long term.
The following rule of thumb applies: the costs for your property should not exceed one third of your gross income. Property costs consist of interest, mandatory amortization and the property’s running costs (maintenance, repairs, etc).
When deciding whether a property is affordable for you in the long term, lenders don’t use effective interest, but rather a higher imputed rate of interest, currently at around 5 percent. This should ensure that customers will be able to afford the property even if interest rates go up.
Therefore, the affordability calculation is:
5 percent of the mortgage amount + mandatory amortization (repayments) + running costs at percent of the property’s purchase price (running costs) ≤ one third of gross income
Use our mortgage calculator and check if you have enough capital for your chosen property.
In our checklist, you will find an overview of the documents you need to take out a mortgage.
At PostFinance, you will find the right financing for your home. Compare our mortgages directly online or get advice.
The alternative to buying an existing property or apartment is, of course, to build a new one. This means you can design your home exactly as you want it.
It’s difficult to say which option is better financially; costs depend on many factors such as land prices, available facilities and location.
You may face a double financial burden during construction: the rent for your current apartment and the loan for building your new house or apartment.
When buying a property, seek advice from an expert and check all processes and documents thoroughly.
This way, you will avoid any nasty surprises.
There are various notarial and administrative fees when buying a property. These vary from canton to canton and are usually shared between buyer and seller:
