I’ve just found some data showing that I gave you even too big numbers:
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Should be finished state with standard equipment. Consider the external volume (from foundations up to the roof and including walls). So mine is something like (13x7)x9=ca. 820 m3
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I have an example of big one (data from sales dossier) - 242 m2, translates to 1120 m3.
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We have 101 m2 and 534 m3.
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Could you elaborate on this, seems pretty awful when this would happen.
This was at one of my previous employers. They said that any percentage you cash out from your second pillar for buying property will reduce the coverage by that percentage.
The next place I worked for had no such rule, so check with your BVG committee if concerned.
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That has a backside as well. If your circumstances chance and you would need to sell, bank will not hesitate to charge 100k+ (all your interest payment and then some for the negative rates) to break your fix mortgage
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Can you please elaborate more? If one would like to repay fixed mortgage in full before reaching the end of fixed period, what are the penalties then? I guess it probably depends on the bank or rather specific contract? What are the “general” rules in this regard? I hope that it is not normal to pay all interests left + some additional penalties :D.
Usually the interest you would have paid, that’s it. Some banks add additional fees and some banks subtract 0.35%/year (risk costs) like UBS.
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That is correct. Technically it would be possible to transfer the mortgage to the new house owner (if the buyer and the bank agree). Also you could use the mortgage to use it for your new house if you would sell/buy.
But you are right - in case for example you are in a divorce, this would be a very nasty thing with many other things during that sad process.
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In some cases the buyer has to take over the mortgage!
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All the interest for all remaining years PLUS about 0.5-0.7%/y of negative interest - whatever’s the current rate on the bond market. So in total that it could be easily double of the sum of interests for the remaining years on the mortgage. Cheaper to just keep the mortgage going!
Eh not really, pretty much all swiss banks will charge you negative rates as part of their Vorfälligkeitsentschädigung. This is a very common fine print in mortgage contracts.
If you signed your mortgage before 2014-2015, you might get the negative part waived due to a couple of relevant recent court cases which essentially said back then it was unthinkable for a mortgage taker to take into account that rates would plunge into minus. But if you have a recent mortgage, you’re gonna get f*cked if you have to cancel it.
Yes, but you will fetch a lower price for your house by artificially restricting the pool of buyers like this.
Your current bank will be very well aware of your situation and would try to offer noncompetitive high rates on any mortgage extensions (assuming you made a good profit and buyers need a higher mortgage than you), scaring your buyers from it
Yes, but applies pretty much to just people wanting to upsize their home in Switzerland. There are many more situations where you will have to cancel the mortgage and get f*cked.
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UBS doesn’t.
…
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What does your UBS contract clause about Vorfälligkeitsentschädigung look like?
Recently closed 10 years fixed Hypothek from Raiffaiessen. According to the contract “The indemnity is calculated as the difference between the loan interest rate agreed for the product in question and the interest rate achievable at the time of early maturity for an investment on the money and capital market with the corresponding Remaining term. The compensation is calculated as a percentage of the respective capital for its remaining term and is calculated on the basis of the time to maturity”.
In my case, the 10 years fixed rate is .87% for 600k, I would probably roll over this mortgage into the new property if we are selling.
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Hey people, I’ve been wondering about one thing. I’ve plugged in the data of the flat I’m renting into an online value estimator tool. It’s a modern 90sq flat 10 min from HB. I got 1’000’000 CHF. I’ve done the same for a flat in Zürich, close to Zürisee and got 1’500’000.
The net rent of my flat is 2’000, the Züri flat 3’000. So in both cases the rental yield is 2.4%. At the same time, I’ve been searching for modern flat to buy around Zürich. First of all, there is almost no market, but if you find something, this is the price.
How can the rental yield be so low? Both flats are managed by big companies, so they are not rented out by private people. Do you think they are heavily leveraged on these properties? Numbeo was telling numbers closer to 3.0-3.6% rental yield for Zürich.
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First I’d think that the yield is lower (they have to maintain the building and the apartment, eg when things break).
Then I think for those companies, they’d compare it to bond yields (it starts to be a much better deal). They also might care more about the cashflow than the actual yield (if they’re a pension fund, if the building was built a few years ago, I don’t think the building value matters much to them, they’re not going to sell it, so even if yield is going down because the real estate prices are going up, the cashflow is the same for them – or increasing slightly if rents adjust)
I thought that the Kaltmiete is pure yield and the Nebenkosten include heating, cleaning, gardening, lift and maintenance? In my case the Nebenkosten are 300 CHF/month.
That’s an interesting theory about not caring about yield. One building is owned by Helvetia. But wouldn’t any investor care about yields? You have X millions to invest, you look at return and volatility, yes? I was really certain that these properties have to be heavily leveraged by mortgage, but maybe you’re right, maybe the pension funds are willing to accept such low yields, because they have millions at their disposal, and they don’t know what to put this money into…
For the same flat dropped in a town somewhere else you would pay a rent of 1500 CHF, with already a good profitability (CHF-wise) for the owner, including deduction for heating costs, maintenance, insurance, taxes, … It means that the owner of the Züri-flat gets an extra 1500 “for free” each and every month.
Imagine YOU are the owner. Will you consider selling such a flat (and gamble at the stock exchange 
and risk losing value because JPow has done too much Ctrl-P with the dollars)?
Answer: NEVER! Or eventually at an exorbitant price. This exorbitant price is the main reason of the low yield (denominator effect). Another reason is actually the enormous leverage allowed.
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It’s crazy to me to see such low yields but yes, pension funds drive real estate prices up and don’t really aim do make 7-8% like private investors.
In my area you can expect a Kaltmiete of 1650CHF+100CHF for the parking space for an apartment that’ll cost around 530k.
You bring in your 25% (i gladly bought mine last year with 20% down) and take a mortgage on the remaining 400k.
400k costs you 4k/year, 1% for Rücklagen 5k/year
This brings your return on your downpayment to 9% (pre-tax)