What You Need To Know About Buying Property In Verbier, Switzerland
Stay a tenant or become a homeowner? This is a question that many Swiss are asking these days. There is no denying that there are tons of beautiful and lucrative properties in the area, but with insights into Verbier property for sale any expert would tell you that the housing market is complex, to say the least. In fact, buying property in Verbier in Switzerland is far more complex than it is in other parts of the country, and this is just one of the many reasons that over sixty percent of the population are tenants. Owning a home can be a lot of responsibility, but it can also be an investment opportunity of a lifetime. Also, just because the market is complex in this part of Switzerland it doesn’t mean that you have to rent forever. You just need a little insight and understanding of the market.
Anyone that is going to buy a home, apartment, chalet, or condo will more than likely need to do so with borrowed money. It would be nearly impossible for most to imagine paying for a property outright. Well, when it comes to borrowing money, equity is a key factor. If you want to become a homeowner in Switzerland, you will need to contribute at least twenty percent of the purchase price upfront. Unfortunately, this is just one of the rules applied by the banks in the area, and why owning a home can be so difficult. Even if the income is there, you must still have this twenty percent deposit upfront.
What makes things even more complicated is that at least ten percent of these funds must be cash sources, like savings, 3rd pillar life, life insurance, or gifts. The remaining ten can pretty much come from any source. For instance, you could buy a home with 10% liquid assets and a 10% 2nd pillar. You could also buy with 15% liquid assets and 5% 2nd pillar.
Income And Borrowing Money
Not only is equity extremely important, but you are also going to need to check your borrowing capacity. The true aim here will be to determine the amount you can borrow so that your income will allow you to cover the mortgage in the future. This step will not only speed along the process, but it will allow you to refine your search by helping you target properties within your budget. What you need to know about most banks in Switzerland is that acquisition-related expenses must not exceed 33% of your gross annual income. Just for example, if you want to buy a home with a price of CHF 1,000,000, your income will need to earn at least CHF 180,000. To make things even more complex and complicated, long-term expenses factor into the equation.
For instance, if you are paying a loan on a car or a business, this will also factor into the equation. In fact, it might put you under the line and make you ineligible. So, as you can see, buying a property in the area is certainly no easy task, but it is possible.