Upgrading to my 2nd property in CH

Dear Mustachians,

Bought a flat 3 years ago, this weekend my family and I visited a duplex flat with a nice garden near my kid’s school and wife’s work. Needs some work but it has potential.

I wasn’t thinking moving out since we get really well with the neighbors and we still have 7 years before renewing the mortgage but this one is really close to the lake and we would definitely improve our life style.

My question is regarding my mortgage, saw a Tik Tok from Edouard Clerc saying that it’s possible to increase the debt of the house and use that cash to invest in a new property.

Not sure if it would be possible to keep both or if the best would be sell one and buy the other.

Also since this one has a bigger mortgage is it possible to keep our mortgage interest and ask our mortgage lender the difference?

PS: I used Moneypark in the past and also considering Resolve to check my current situation.

Thanks Mustachians!

I’m not sure about the veracity of the experiences of Edouard Clerc. I know he’s making lots of paying ads to flood social media.
I think the best person to answer your question will be your advisor at the bank.

Prepare the numbers of the new project and ask him if you could partially finance it with your current flat valuation.
Either the valuation of your current flat went through the roof either your reimburse a large amount of your ongoing mortgage.

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Thanks a lot for your answer. My advisor was not available today, I already prepared the numbers as you also suggested. Let’s see if renting is an option or if I need to sell one to get the other. The current mortgage interest and the notary costs may be decisive.

Hello, wondering if you got an answer on this since I am in a similar situation. Would like to buy a second property and need to determine if I can keep and rent the first property or if I need to sell it. In particular if I will be moving into the second property to live in it are there still stricter affordability conditions such as no pillars and 25% down payment as for vacation homes?

I guess those conditions would apply then to the place you inhabit now?

I already used both second and third pillars when I purchased the property I inhabit now (5 years ago) and have an active mortgage on it. Would new affordability conditions arise if I were to move out and rent it?

You have to pay back the Pillar 2 amounts if you no longer live in it.

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Are you sure? I thought you have to pay back 2nd pillar withdrawals only if you sell the property.

Not really, but WEFV Art. 4 Eigenbedarf says you cannot rent out a property bought with Pillar 2. (Or more accurately: Wenn die versicherte Person nachweist, dass die Nutzung vorübergehend nicht möglich ist, so ist die Vermietung während dieser Zeit zulässig.)

This woman moved out and the PK demanded the money back, but she won in court:

This article talks about the exceptions: https://finpension.ch/en/repayment-of-the-wef-advance-withdrawal/


Ran the numbers and can’t afford to keep both, need to sell one and purchase the order. But for the moment we didn’t find an agreement with the purchase price and I won’t get into crazy numbers since it would double my mortgage.

Did you find an answer to whether its possible to increase the debt of the house and use that cash to invest in a new property?