What you need to know before becoming a house owner

Choses à savoir propriétaire

A dream that is built by specialists

Finding the ideal home, avoiding unnecessary visits, calculating the right budget, discussing with banks, evaluating a possible deferred payment of the tax on real estate gains or even haggling for a purchase price: all these aspects are the business of experts specialized in the real estate field. Becoming a homeowner is a dream that is built step by step, but which requires a real understanding of the market and its evolution. At Cardis Sotheby's International Realty, we master these skills, let's meet! 

Location of the property 

The location of the property you are targeting will greatly influence the final cost. Very often, depending on the available equity, buyers' desires must be re-examined. Once the choice has been made, you will need to raise the necessary funds using all possible levers. Did you know that Cardis Sotheby's International Realty is well established throughout Switzerland?

Raising equity capital

Many people are afraid of the basic stage, which is that of equity capital. It is very important to make sure you are financially capable. There are many ways to raise equity capital.

The basis of financing is of course the 2nd pillar. But at least 10% must come from other funds. They can come from personal savings, from the 3rd pillar or from an inheritance. It is also possible to buy a self-supporting property to help pay the monthly installments. So don't hesitate to talk to your family, your employer or your friends.

All sources of funds that could constitute your contribution must be put to contribution for the realization of the project. In the end, the solution is never as far away as you might think, and your family and friends are often the key to helping you become a homeowner. Do not hesitate to contact a Cardis Sotheby's International Realty agent to help you define your means.

An encouraging Swiss policy

In Switzerland, projects to purchase real estate are supported by an encouraging tax policy, in particular through a deduction on income from interest liabilities and depreciation. In addition, bank rates are among the lowest in Europe. 

The mortgage loan

Below is an example of a calculation used by banks to determine your ability to finance your mortgage loan:

  • Theoretical passive interest: 5%.
  • Annual amortization: 1%.
  • Maintenance costs: 1%.

In theory, this total should not exceed 1/3 of your couple's total gross income.

Basic financing rules, mortgage mix and tax aspects

Regarding the basics of financing: you need a minimum of 10% of the funds in cash. Then, the extremely interesting fiscal aspect is the following: as an owner, it is possible to deduct the interest from the debt..

A mix of mortgages is possible: fixed rate, variable rate. Once again, we advise you to contact a specialist in order to arbitrate in the best possible way. For purchasers over the age of 50: early withdrawal from the 2nd pillar must take place no later than three years before entitlement to retirement benefits. Monthly housing costs must not exceed one third of income after retirement.

All these aspects added to the particularly favorable current market and the dry losses caused by the payment of a monthly rent as a tenant encourage us to encourage you to become a homeowner!

Becoming a homeowner: an advantageous long-term investment

In other words, becoming a homeowner is an accessible financial transaction. All the more so if you do things in the right order and with the support of a specialist such as Cardis Sotheby's International Realty. Owning your own property allows you to pay rent for an object that is yours, unlike renting. Your children will thank you, because in addition to being a stable estate option, owning a property allows you to mortgage that same property to help a member of your family become a homeowner in turn.

Become a houseowner