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Interested in the EUR/CHF exchange rate because you want to buy a house abroad?

Interested in the EUR/CHF exchange rate because you want to buy a house abroad?

28 November 2016

We have noticed, more and more Swiss are considering to invest in a property outside of Switzerland. Once reserved for the very wealthy, there are many reasons why buying a house abroad is easier than ever before: low interest rates, very favorable prices for real estate in some European countries since the financial crisis, and a Swiss franc standing very strong against the euro

But buying a house behind the border can be a tricky opportunity. There are many aspects you that you need to pay attention to before jumping into signing a contract.We have listed some of the issues you will have to consider...

We have noticed, more and more Swiss are considering to invest in a property outside of Switzerland. Once reserved for the very wealthy, there are many reasons why buying a house abroad is easier than ever before:

  • low interest rates,
  • very favorable prices for real estate in some European countries since the financial crisis, and
  • a Swiss franc standing very strong against euro.

But buying a house behind the border can be a tricky opportunity. There are many aspects you that you need to pay attention to before jumping into signing a contract. We have listed some of the issues you will have to consider:

A different legal system

The legal system and arrangements to be done in other countries may be very different to what you know or have experience in Switzerland. It is for sure better to start with some research or consult an expert on local laws for buying or leasing property, if you plan on renting it out.

Rigorous check of the property before buying

Hire an architect to make an in-depth check of the property. Repairing works might result in expensive additional expenses, if existing damages are too serious, e.g. leaking roof. You might even have to change your plans and postpone moving into your new property.

Taxes

Taxes for real estate are charged and paid where the property is located. Swiss federal and municipal taxes do not cover any income from a property abroad or its value. But as you probably know by now, life isn't all beer and skittles! The calculation of the progression of the effective tax rate can be impacted by the value and income of the property abroad.

Financing your dream house

There are almost no possibilities to get a credit from a Swiss Bank to buy property outside of Switzerland, as they do not feel comfortable with foreign real estate markets - like you, Swiss banks might also struggle with unknown legal and administrative practices. Check on financing possibilities in the country your new property is located.

Construction standards

Construction standards are not so high everywhere as we are used to in Switzerland. lf you are planning buy new property, ask in which construction state are you receiving it. ln some European countries properties are left to be finished by the buyer according to his own taste, so you will not be able to live in your dream house from day one.

The only thing that you do not have to worry about is getting out the most of your savings when converting into Euros. We specialize in the exchange of Euro and Swiss Francs at the lowest possible real cost. Check our offer and save real money!

Exchange Market- Fair finance starts with fair exchange rates

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