Since ancient times, the concept of homeownership has been one of the basic needs in the lives of individuals and families in general; today as in the past, it is an ideal haven for assets when you want to protect your capital.
Market uncertainties and glimpses of the financial storms that rage in other parts of the world really have little impact on such a stable and balanced market as that of real estate in Switzerland.
The country's migration and diplomatic policies give a rosy and always thriving outlook even when storm waters are close to its borders, thus making an investment in property one of the wisest, guaranteed choices for the future.
Doubtless we must draw on our own financial resources, but before moving on to the details, it is wise to clarify some key points of Swiss legislation for real estate purchases.
One of the fundamental conditions for the purchase of a property, whether a single family home or an apartment, or something even more substantial, is to have access to an amount of your own funds also known as "down payment".
The term "down payment" is defined as the amount of money that the would-be investor must immediately place at the time of purchase to guarantee the transaction; this is the minimum accepted by the Swiss banking system and includes only the bare value of the property (excluding the costs of transfer of ownership).
The latest cantonal rules state that the buyer must immediately have (or have access to) 20% of the purchase price of the property in question. The basis for this condition is the principle of sustainability of a loan that covers the rest of the transaction amount as well as the concept of citizen commitment to the transaction and to its success.
Once in possession of the necessary equity capital under the terms of the Act, it is time to come to terms with the overall concepts for a financial plan that allows property investment on the one hand and personal finance stability on the other.
The first thing we need to be thinking about is the full investment cost. As stated, the law requires you to have at least 20% of the value of the property that you want to buy. The latter, however, has additional costs: property ownership transfer and general expenses related to the Canton where the transaction takes place, notary fees, taxes and property taxes. If the investment property will also be your new residence, it is a good idea to also consider the various costs involved in the move, which will depend of course on the amount of people, furniture and anything else that you will transfer.
Therefore, direct planning of future earnings becomes essential regarding the sustainability of the instalments of the loan and expenditure that a property involves.
Having said that, which is useful to forecast the overall amount of sustained effort for the investment, it is now time to move on to examining the various mortgage possibilities to obtain the rest of the capital needed to purchase the property.
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