Oh wow.
Based on Realadvisor , average price increase in CH over last 10 years is 34% and for Zurich is 50%
This means for the tax purposes if you didn’t put any investment into the house, the value will remain the same as 10 years back?
I was under impression tax value of real estate in CH is fair market value minus some standard reduction (like 30%).
Thanks for letting me know
I was also shocked to see that. 100% appreciation in property over 4-5 years is only possible if it was a distressed sell in beginning and miss-priced
Well you do not pay taxes every year on your property. But then when you, (or your children) sell it. Then you have to pay property gains tax which can be very high with such high appreciation.
it might also be a 15% increase on a house bought with 85% mortgage
The amount on mortgage only defines the dept, not the RE value.
6 posts were split to a new topic: In which case do insurances make sense?
Double in 4 years not sure but Canton Zug has some areas that double in the last years, specially in the surroundings, like Ägeri or Cham for example
One factor that we do not count or at least I didn’t when calculating the networth for the RE is that you even if sell your apartment at the value or higher there is the tax on gains that it is quite painful and reduce your calculation by the % of gains.
80k to 350k in 4 years is not bad at all!
Tracks. According to my bank’s info, value of my apartment is up 34%. Signed contract in 2019, completed in 2022. So in 5 years 34%.
This value tracks with Engel & Völkers price per square meter for the region and with apartments being advertised for sale in the region. In fact, a 3.5 room apartment in the same complex is advertised at 54% over this value and I am not sure 3.5 has a 54% mark-up versus 2.5. Especially since mine is the better part of the complex for sure. Checking some current listings, the mark-up seems to be below 30%.
So yea, buying that at a 1.05% interest rate with already such an increase in value, best fucking thing I ever did.
However my question was to understand if your wealth tax is now paid at 34% higher value or still the old value?
The old value and this value doesn’t change afaik.
The tax office can adjust the numbers, if the value of the property increased too much.
But don’t ask me, when they are doing that - even they have no idea 
Best place to make investment no increase in wealth tax. Just increase in wealth
I heard someone say in some cantons it does not happen for over a decade.
SZ, still same value as 24 years ago…
Can you re-mortgage without it affecting the value? I mean if you take on more debt you can not only increase the negative wealth but also have the cash available to invest.
Yes, I got 100k added twice, about ten years apart, on top of the existing mortgage for renovations, not for investing, and at least in SZ this didn’t affect the tax value.
But you will be able to deduct it from the profit when you sell.
Do you know if this is related to the fact that Real estate gains are subject to capital gains tax and hence they would like to keep the tax value same as the actual cost of acquisition?
And eventually at time of sale
Capital gains = Sell value - Tax value ?
It feels a bit weird that wealth tax on real estate is applied to values which are not really the current value of the asset.