Switzerland is one of the countries most sought-after by expats, and not just for its chocolates. It offers a better quality of life. The French, in particular, moved to Switzerland because the wage is high and the distance between the two countries is less. As for the real estate market, prices have declined slightly recently, but they vary from region to region. Thus, we invite you to discover the necessary information about the purchase of a property in Switzerland .
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Conditions for acquiring a property
Like the Swiss, nationals of an EU affiliated country (European Union) and EFTA (European Free Trade Association) with a B or C permit are also allowed to purchase a house or apartment (principal or secondary residence) in Switzerland, without applying for any authorization. Frontier workers must apply for a special cantonal permit if they wish to acquire a second home in Switzerland.
Real Property Financing
In most Swiss cantons, the cost of acquiring real estate is high. For this reason, a financing system has been put in place. This is a mortgage loan accessible under conditions. Often people opt for a mortgage that provides very low amortization of the borrowed capital. All Swiss banking institutions, such as UBS or cantonal banks, offer mortgages to subsidize the purchase of real estate. But you can also resort to the services of a broker, who will take care of for you the comparison of the offers offered by different banks. Then he will find you the bank offering the best rate to finance your project in Switzerland.
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Who can get a mortgage?
Before granting you a loan, the Swiss Bank will first check your real estate project in the smallest detail by looking at its location, its price and your funds. From of the information you provide, the bank will be able to determine the extent of the risks it takes by helping you. Then she will offer you a rate for your loan. Here are the two important elements taken into account by the bank:
- Own funds: the financial institution may require an equity contribution of 20% of the price of the property.
- The debt rate: This is the ratio of the monthly payment of your loan to your income.
Accommodation in Geneva
Expatriates are increasingly interested in Geneva, hence the strong growth of its population. According to the world classification, Geneva is the eighth city where it is most enjoyable to live. It is also the most famous city in Switzerland after Zurich. The climate is very pleasant, with a summer temperature of A real estate agency in Geneva will facilitate the search for a property, if you plan to settle in this city. Among the different existing agencies, Cardis Immobilier Sotheby’s International Realty can help you. Specialist in real estate brokerage and promotion, she is involved in the sale of houses, chalets, apartments and land. Its real estate agencies are located in Lausanne, Montreux, Vevey, Montagne, Fribourg, Martigny, Nyon and Geneva.
Geneva is divided into four sections: the Plain-Palais, the city of Geneva, the Petit-Saconnex and Les Eaux-Vives. The latter are divided into many neighbourhoods, namely residential and business districts. For example, Saint Georges, Cite Bourg de Four, Saint Léger, la Colline, Mont Blanc… have their headquarters in Geneva. It is also considered the world capital of watchmaking, wealth management and luxury.
Tips for buying a real estate
Buying real estate is a decision that needs to be well thought out. It requires a large budget. Before you start, so you need to prepare a certain amount. Note that negotiating the price of a property in Switzerland is almost impossible. Once the budget is determined, you can think about your preferences and housing needs. To do this, note the mandatory essential points on one side and the items you want but which are optional on the other. Also do not forget to determine which aspects you do not like. Depending on your budget, lead a small survey on the type of real estate you can get. In this way, your expectations will be realistic and will not exceed your resources. When visiting the property, also check the accessibility, the presence of schools… nearby. For the counter-visit, it would be better to do it at a time other than the time of the first visit, for example, for the control of sunshine. In the event that there is work to be done, call a professional to find out what expenses are to be expected.
Notarization of purchase
All Swiss transactions must be registered by a notary. Even if chosen by the buyer, the buyer must remain neutral. Letters of intent and pre-contracts must then be notarized. Your transaction will not be valid and legal without a notary. Normally, you must come in person for signature, but you can also appoint a legal representative. For this it requires a power of attorney issued by the notary.
To begin with, you have to sign the contract of sale drawn up by the notary. This agreement states that the seller will not be able to sell the property to another person. In return, you must pay an advance of 10% of the value of the property as a guarantee. If you are a non-resident and your licence has been refused, your deposit will be returned to you and the property will return to the market. But you still have to pay the notary fees. After the signing of the contract of sale by both parties, the notary shall place it in the land register of the canton. Then you need to pay the remaining 90% with the notary. The latter will keep the money until the transaction is finalized. Following registration of the deed, the title will change and the notary will transfer the money to the seller. You will receive an updated extract from the land register confirming that you are the legal owner. If everything is in order, the procedure lasts about 16 days. In addition to the value of the property , you have to pay the registration fees, notary fees and property transfer tax.
You can go here to discover the situation of real estate inSpain.