Housing loan

 

A dream for a lifetime and a significant financial investment: buying a property is a smart combination of both. Whether for the purchase of an apartment or a house, such a purchase requires careful preparation to avoid unpleasant disappointments.

What are the three essential steps to buy your home? What are the pitfalls to avoid? How can you embark on this adventure if you are well prepared for it? In this section you will find all the necessary advice to carry out your project successfully. Put all the opportunities on your side to successfully acquire your home.

First step: define the contours of your real estate project

First step: define the contours of your real estate project

Apartment, house, old, new, to build, to live, to rent to carry out a real estate project allows you to be ashamed of the choice. This great freedom, although very pleasant, is sometimes difficult to understand for those who buy for the first time. On the contrary, if you have already bought a property on one or more occasions, it will be easier for you to concentrate on the essentials and focus your research on a particular type of housing. Whatever your situation, finding accommodation takes time. Therefore, it is necessary to be well prepared to optimize your search, the cost of the operation and put all the possibilities on your side.

What is your real estate project?

What is your real estate project?

An essential step, you probably already know the main components. However, it is necessary to review the type of property and the reasons why you are willing to buy. Discussing it among all family members helps to agree and save time.

Why do you want to buy?

Why do you want to buy?

  • Acquire a primary residence: you want to buy a house to live, you and your family. The purchase of a principal residence is a life project that is conceived in the long term.
  • Make a rental investment: to complement your income and / or create and develop your real estate assets by buying a house with a view to renting it.
  • Becoming a second owner: there is nothing better than owning your vacation home and being able to go whenever you want.

Become a home or apartment owner?

Become a home or apartment owner?

The choice is made mainly by a matter of preference for the vital environment: the calm and serenity of the countryside or the ease of transport and access to the culture of the city. Beyond these personal preferences, it is important to note that the prices of a house are higher than those of an apartment. On average, the price of a home represents 8 times the gross annual income of a Swiss household. An apartment, on the other hand, has a proportion less than 6 times the income of a home.

Buying new or old?

Buying new or old?

Buying a new property gives you peace of mind: a new property will avoid unpleasant surprises and work to plan. This can be a finished real estate project or an on-plan purchase, or an individual construction for which you determine exactly what your project is according to your needs.

The acquisition of an old house allows access to homes in the city center or in places of character. You can also save on the purchase price when planning work. It will be necessary to budget them well by making budgets by the artisans.

What is the geographical area in which you are mobile?

The determination of the area in which you are looking for your home depends on where you live, the transport options (roads, public transport, bicycle lanes, etc.) and the time you want to spend traveling. After this step, the search will be even more precise, district, city, number of kilometers, at each their own criteria. On the other hand, always keep in mind the possible traffic jams and rush hours when making your calculations.

Determine your budget

Determine your budget

Estimating the budget you have for your purchase is essential to know if your operation is consistent. To know the overall budget of your project, it is necessary to take into account all your resources, also called own capital, such as personal savings (savings contracts, life insurance, etc.), professional forecast (second pillar) and benefits private (third pillar). To this we must add third party funds, that is, the mortgage loan to which you are entitled. To obtain an estimate, it is very possible to use a mortgage credit simulator or contact a financial advisor. Creditbanks allows you to get a quick response to all your requests to study a real estate project.

Once your budget has been determined, the main question to ask is the following: are there properties available in the geographical area that I want and with my criteria? If not, what commitments am I willing to make? It is very possible to visit properties above your budget, since there is often a margin for negotiation with the seller. Be careful not to forget the additional costs that are added to the sale price of the property and always keep a portion of the savings available in case of unforeseen circumstances.

Here is an example of a balanced project:

With its own capital of CHF 30,000 and a mortgage loan of CHF 170,000, total resources amount to CHF 200,000.

The purchased apartment costs 190,000 francs, to which 10,000 francs must be added for expenses (notary, registration, etc.), for a total of 200,000 francs.

Therefore, the operation is balanced, with all the borrower’s resources covering the entire project.

In relation to acquisition costs

Becoming an owner is not just about paying the sale price. It is also necessary to pay a series of fees. Knowing them well allows you to include them in your budget and, therefore, contribute a certain amount of money for this purpose. A good estimate of these costs is to apply a 3% to 5% rate on the sale price. It covers notary expenses, registration, expenses related to the realization of the mortgage loan, etc.

In addition to the costs to be paid at the time of purchase, owning also requires that certain specific costs be paid each month or every year (insurance, maintenance, work, etc.). In particular, when you become the owner of a property located in Switzerland, it is necessary to pay a tax called “rental value tax”. The amount of this tax is equivalent to the theoretical rents that would be charged if the property in question was leased and not inhabited by its owner. The choice of amortization of its acquisition will have a very significant impact on this tax. In fact, the calculation is based on the participation that the borrower actually has. By depreciating a lot, you have a greater share in the property and the rental value tax will be even more important.

Step two: find the house of your dreams

Step two: find the house of your dreams

After defining the main lines of your real estate purchase project and now that you know your budget, you can start reviewing the real estate ads of agencies, websites and scheduling your first visits.

All points to observe during a visit

All points to observe during a visit

The first visits can be a sign of favorites or disappointments. Being well prepared and knowing what to look for is essential. Here is a list of questions that will help you see more clearly, piece by piece.

  • The kitchen: is it equipped? Is it necessary to buy new appliances? Is it open or separate?
  • The rooms: how many are there? What is your status? Do they have fitted wardrobes? Adjoining showers?
  • The bathroom or shower: shower or bath? Are the bathrooms separated or inside?
  • The living room: is it big enough?
  • The general distribution of the house: is it on the ground floor or on several floors? Are the stairs practical? What is the orientation?
  • The external condition: is there any visible crack? Do you need to cool the facade?
  • What is the status of the portal? Is the garden big enough? There is a swimming pool?
  • The neighborhood: are there neighbors? A joint ownership? Noisy roads in the surroundings (road, rail, air corridor, etc.)?

And of course, what is your feeling? You’re in love? Do you feel comfortable in your future housing potential? All these elements will allow you to position yourself and know if you want to make an offer.

Complete the purchase of a real estate property

Complete the purchase of a real estate property

When making several visits, you can compare the offer of properties that fit all or part of your criteria. However, sometimes it is difficult to make a comparison between two properties that are not very similar. Focusing on the average price per m² is a good way to refer. Also, do not hesitate to negotiate the price of accommodation. If you have to plan the work (renovation, modernization, snack, etc.), showing the budgets to the seller is a good way to get a discount. Again, the price per square meter can also be used as an argument. Finally, do not forget that a negotiation must take place within reasonable limits and that the result depends largely on supply and demand. In very popular sectors,

Third step: get an internal loan

Third step: get an internal loan

Your real estate purchase project is coming to an end. However, an essential step remains: obtain a mortgage loan to complete the purchase of your home. To do this, you can use banking institutions or credit companies. Accompanying you throughout the project, from its beginning to its completion, Creditbanks is the ideal partner for the purchase of your house or apartment. The mortgage loan proposals that we prepare for our clients fit their financial and fiscal situation.

 We know that a real estate project requires time, reflection and, above all, good support. Therefore, Creditbanks offers you the possibility to study your financing application individually. You can now contact one of our consultants to get all the information you need.

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