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Why now’s the time to buy a home in Switzerland

Switzerland is among the five best countries for first-time buyers, according to a new report.

Why now’s the time to buy a home in Switzerland
Photo: Depositphotos/Brian A Jackson
UK-based relocation service MoveHub compared 2016 property price data from the Global Property Guide with average salaries according to the Hay’s Group Global Salary Forecast to determine the best countries for first-time buyers to get a foot on the property ladder.
 
Of the 33 countries analyzed, the United Arab Emirates topped the table thanks to a nearly eight percent drop in property prices last year. 
 
In Switzerland, a 2.5 percent hike in salaries against a 0.68 percent drop in property prices put it in fifth place behind Spain, Greece and Singapore, ranked second to fourth.
 
“Overall the report revealed that countries with the biggest property price hikes had unfortunately also seen the slowest growth in annual incomes, with some salaries in decline, whilst house prices rose,” said MoveHub in a statement. 
 
“On the other hand countries with the highest salary growth enjoyed more affordable property prices or even prices in decline, making them the best places for first-time buyers”.
 
Only around 30 percent of people own their homes in Switzerland, since most people rent. 
 
Property prices can be steep, however wages are among the highest in Europe and interest rates on mortgages are currently extremely low. 
 
Speaking to The Local, Yves Cherpillod, director of the Lausanne branch of estate agent Cardis, based in French-speaking Switzerland, said he’s never seen such good conditions for buyers as now. 
 
Following a sharp rise in the market from 2000 to 2012, house prices have since gone down again, he said. 
 
“Now we are in a period where customers who are looking for a home can really discuss the sale price and when they have negotiated a good deal that the vendor accepts, they can then obtain exceptional financing.” 
 
At the moment mortgages can be as low as 1.5 % for a ten year deal, he said. 
 
“In 34 years in the business I’ve never seen this.” 
 
According to the UK-based Global Property Guide the median asking price for a family home in Zurich in 2016 was 1.62 million francs, while apartments in the same city were going for 11,250 francs per square metre. 
 
In Geneva those figures were 1.44 million francs and 11,710 francs per square metre, respectively.
 
Swiss lenders can be conservative, requiring borrowers to put down a sizeable deposit, while non-EU foreigners wishing to buy are subject to certain restrictions. There are also law limiting second homes and holiday properties.
 
However if you can do it, buying in Switzerland is a great investment, feels Cherpillod, particularly for those who choose to rent it out when they return to their home country. 
 
“Often foreigners, more than Swiss, can afford to put more than 20 percent down as deposit to buy a home. With such low loan rates and rents that largely cover the costs, they can really benefit,” he said.
 
Turkey was named the worst of the 33 countries for first-time buyers in MoveHub’s research. While wages have only grown by 0.6 percent over the past year, house prices have shot up by 16.42 percent, mainly due to foreign investment, found the report.
 

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LIVING IN SWITZERLAND

Checklist: What you need to do if you move house in Switzerland

Moving from one house or apartment in Switzerland to another is not as simple as just packing up your furniture. Instead, the process involves quite a few administrative tasks.

Checklist: What you need to do if you move house in Switzerland

Anyone who has ever moved, whether in Switzerland or elsewhere, knows it is not just a matter of simple logistics.

In fact, whether you are relocating to another town or canton, or just to another neighbourhood, moving is a big, expensive, time-consuming, and stressful experience.

These are various tasks you will have to cross off your list, one by one.

Getting your old apartment in order

It goes without saying that before you move out, you must make sure to leave the place clean and in order. Most people hire a cleaning company to do so, though you can, of course, do this yourself.

If, for instance, you broke or damaged anything while living in the apartment, you must repair it before you leave.

The condition of the apartment will be assessed during the final inspection process, when the landlord or the management company will write down all damages which you are responsible for either repairing yourself or paying someone else to do it for you.

You are not officially off the hook with your previous landlord until this process is completed.

De-register your old address and register the new one

Whether you are moving across the country or just across the street, this is an obligatory step.

You must let your ‘old’ commune’s population office (Einwohnerkontrolle / Contrôle des habitants/ Controllo abitanti) know you are leaving, and from which date.

You can do so either in person or (if available) online.

Then, when you settle in a new home, you have 14 days to announce your arrival in your new municipality, though in some places the deadline may be longer.

You will need the following documents:

  • A passport or ID card for each member of the family, in addition to a passport-sized photo for everyone
  • Documents relating to your family status — whether you are single, married, and with children
  • Your work or residency permit 
  • Your lease contract or proof of home ownership
  • Your health insurance card or proof of your current health insurance policy.

The rules are the same regardless of where you arrive from, that is, if you are Swiss, an EU citizen or from a third country, however the supporting documentation may vary. 

Some cantons may require other or additional documents, which you can find out ahead of time on your commune or canton’s website.

READ ALSO: Why you need to tell Swiss authorities where you live 

Inform the post office about your change of address

To ensure that your mail arrives at your new home, fill out the ‘change of address’ form online at least four days before your move. 

Four days is a minimum required time for the post office to process the address change and register it in the electronic database.

If you wait longer, your mail will continue to be delivered to  the old address.

You also should notify these companies of your move and new address:

  • Your mobile telephone / internet provider (if you still have a fixed phone, you should have it switched off at the old address and re-activated at the new one)
  • Your bank
  • Your insurance companies (health, car, and any other ones you have, both mandatory and optional)
  • Your doctor / dentist

If you forget to inform anyone of your new address, no worries — the post office will automatically forward the letters to you, provided your notified them of the change (see above).

What about the tax office?

You don’t have to do a thing.

Your local commune will automatically inform tax authorities of your move, so there is no chance whatsoever that they won’t find you.

Rental versus owned property

If you move into a rental property, you don’t need to, in most cases, notify utility providers like the electric company of your move.

But if you are going to live in your own house, then you must let the local power company know to switch on your electricity supply.
 

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