More expensive mortgages housing costs in switzerland rise by more than half

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From 34,400 to 53,600 Swiss francs for a house: Costs of home ownership in Switzerland rise significantly

Homeownership has increased in price another notch in 2022. Rising mortgage rates have caused the cost of a home to shoot up massively.

31.One house, two localities: When the border divides the building One house, two localities – When the border divides the building The law in the canton of Bern prohibits new buildings on borders.by Daniel Schurter Charging cables also consume electricity when no device is connected.From 11 minutes ago Source: BILANZ The snakeskin-look boots are the first thing that catches the eye, the clack-clack of her heels the first thing that can be heard by Andrea Rytz.

01.2023 09:36 In rural areas of Switzerland, the single-family house is a popular form of housing.Curious examples.Source: Pixabay Higher interest rates for home financing and even more expensive home prices on the market have caused the annual cost of a mid-sized single-family home to rise from 34,400 to 53,600 francs.That’s not much for a single person, but it adds up for entire societies.This was calculated by the real estate analysis company Wuest Partner and published in the winter update of the Immo-Monitoring study presented on Tuesday.If you had been north in the planned sports and industrial park, you would have been on Lyssach soil.Wuest Partner calculates the 55 percent increase in annual costs for homeownership from amortization and interest on a fixed-rate mortgage.Apart from location, dimension and view, however, asceticism prevails.

Mortgage rates have contributed significantly to the higher cost of homeownership against a backdrop of rising prime rates.The floorball and badminton players would hardly have noticed the border crossing.One cable for all Starting in 2024, USB-C charging cables will be required by law in Europe, and by then at the latest, Apple’s extra sausage, or rather the original Lightning connector, will be a thing of the past.Prices for ten-year fixed-rate mortgages have doubled within a year.For five-year mortgages, interest costs have risen 2.5-fold.And yet it would have complicated some things.This has depressed demand, the study’s authors write.At the beginning of 2022, “Kassensturz” reported that some cell phone power plugs ran hot during tests and consumed too much electricity.This can be seen in the significant drop in the number of search subscriptions..

According to the survey by Wuest Partner, the number of advertised properties has increased significantly.The background to this is the desire of owners to sell properties as quickly as possible.Alternatively, you can charge it during the day.Price growth slows Higher supply made market more liquid.Prices nevertheless rose 5.5 percent for single-family homes and 5.2 percent for condominiums.Only in the fourth quarter the increase for the cost of housing slowed down.Then, for example, it can be determined that the power outlet remains switched off between 10 p.m. and 6 a.m.

Prices for single-family homes even fell by 0.2 percent in the period from October to December.Wuest Partner therefore expects only slight price growth in 2023.According to the estimates, prices for single-family homes will still rise by 1.7 percent, while the increase for condominiums should still be 0.5 percent.Such radio-controlled sockets can be integrated into the WLAN at home and then one can conveniently determine via app which sockets are switched on and when.(cash) Sign up and join the discussion.Subscribe You might also be interested in this News.

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Real estate market / real estate news: People react particularly sensitively when you get too close to them. This also applies to real estate. Often there are bitter disputes in court because a property owner's neighbor has allegedly moved too close with his boundary planting or because the "demarcation line" is too small was violated in any other way.

Trouble at the property line

For its extra edition, LBS's Law and Taxes info service has collected nine rulings by German courts that address these issues. Sometimes it is the wall, sometimes the fence and sometimes the garbage container on the property line that causes trouble.

However, enclosures are not only there to protect those living behind them, but sometimes also to protect outsiders from damage. For example, if a dog is on the property. The Higher Regional Court of Stuttgart (file number 1 U 38/10) had to decide whether the sign "Hier wache ich! Enter at your own risk!" with the image of a dog is sufficient to make it clear to the visitor that he should under no circumstances open the garden door and enter the property. In this case, the doorbell could not be reached any other way. The judges were of the opinion that in the case of particularly aggressive dogs the above warning is not sufficient. Here for example the bite of the animal would have to be particularly stressed.

Traffic safety obligation for the sidewalk

As far as road safety is concerned, the sidewalk is generally part of the abutter's area of responsibility. Straight one in the winter comes it with snow, ice and slippery roads again and again to accidents. A house owner had created a special source of danger by leading a rainwater drainage from the roof directly onto the sidewalk (which is quite usual in the locality). Promptly, a passer-by slipped on the resulting ice slab in the early morning and injured himself. The house owner had not fulfilled his duty of care, ruled the Naumburg Higher Regional Court (case number 2 U 25/13). In addition to spreading the road, he would have had to point out the danger zone with a warning notice and possibly with lighting.

House demolition

Some property owners live in symbiosis with each other because their house walls are directly adjacent to each other, and in some cases even connected or interlocked. What actually happens when one demolishes his building and the (non-insulated) wall of the other suddenly becomes "naked"? it says? This had to be decided by the Dresden Higher Regional Court (file number 11 U 568/08). It decided that the person who caused the demolition, and thus the damage to the common boundary, would have to pay for professional insulation.

Parking on a meadow not intended at all for it

If a property is not sufficiently secured from the outside, then some contemporaries take quite a liberty. For example, parking on a lawn that was not intended for that purpose. In order to prevent this, a property owners' association decided to have three large boulders erected, which would have prevented driving on the prohibited area. A member of the community filed a lawsuit. The judges of the Oberhausen district court (case number 34 C 94/12) ruled in his favor. The placement of such massive stones is a structural change that can only be decided unanimously. Thus, the community was left with the alternative of planting bushes or erecting a fence.

The long-distance effect of one property on the other is not to be underestimated. For example, a homeowner felt disturbed because two 25-meter-high ash trees, which stood on public property, shaded his property. The case went all the way to the highest court, the Federal Court of Justice (case number V ZR 229/14). The lawyers decided that the two trees could remain because they did not constitute a serious and intolerable nuisance. Moreover, nature in the city is important for the quality of air and life.

A preceding "bad deed leads under circumstances to the fact that one deprives oneself of its own rights. This is what happened to a motorist who parked his car on the sidewalk without permission. Therefore, only a narrow passage of about one meter was left. Promptly, a seven-year-old child riding a bicycle began to lurch and caused damage to the vehicle. The owner demanded compensation from the parents, who had violated their duty of supervision. The Munich Local Court (file number 331 C 5627/09) did not see it that way. The person concerned had to blame himself for this, as he could have parked his vehicle properly.

Tall grasses do not fall under boundary planting regulations

Two neighbors in Bavaria got into an argument over a planting of elephant grass near the border. The reeds, which could grow several meters high, were a nuisance, the plaintiff said. He feared that lush roots could grow over onto his land and that the dried-out leaves could catch fire in the heat. The Regional Court Coburg (file number 32 S 23/09) considered both as not so dramatic. Moreover, elephant grass is not a tree, shrub or hedge, so the regulations on boundary planting do not apply.

Residents of an old people's home felt adversely affected by a dumpster house on the property line. The smell of garbage is coming from there, vermin is attracted and the lids of the garbage cans are not always closed properly by the staff. But the administrative court in Neustadt (case number 3 K 470/15.NW) left the garbage house in place. The building law requirement of consideration is not violated here. The construction of the building had been socially adequate.

If the boundary between two properties is not completely clear, then it can come already times to momentous errors. Here's how a landowner cut down several trees that interfered with the use of the property. What he didn't know: He had also cut trees from public property. Before the Oldenburg Higher Regional Court (case number 5 U 25/14), the issue was who would now have to be liable for it. The responsible civil senate was of the opinion that this was a case for the liability insurance of the person concerned, because here a general life risk had materialized.

Source: federal office of state savings and loan associations
Photo: obs/Federal Office of State Building and Loan Associations (LBS) / Tomicek

Self-employed people do not get a loan from banks easily anyway, but if they do, they pay relatively high interest rates for it. There are three ways to improve terms: Prospects should conduct a rigorous comparison of providers, offer collateral, and ideally provide a guarantor. These options can also be combined.

Basic requirements for a loan for self-employed persons

Some basic requirements must be met so that the bank is at all willing to approve the loan:

The prospective customer should have been operating their business for some time – ideally as long as possible. But two to three years are a minimum requirement for many banks. Founders to whom this does not apply are best advised to apply for a development loan, for which special conditions apply.
The development of the last years must have led provably to a sufficient profit.
There must be no negative Schufa entry.
All documents required by the bank must be absolutely complete and correct.

Once these conditions are met, it is necessary to look for the best conditions. Let us now check the above possibilities.

Provider comparison

Banks have different business policies. Some of them do not grant loans to self-employed people in principle or only for very specific purposes that minimize the risk of default – for example, for real estate, motor vehicle or equipment financing, which can include the solar system on the roof. However, they do not grant a simple working capital loan for expansion or a consumer loan to the self-employed. Other banks are generally willing to do this, but internally set the interest rate conditions for this. These depend on the individual conditions of an applicant. Self-employed persons should therefore request an offer from the banks with their data – loan request and justification, business model, duration of self-employment, income and family circumstances. The interest rate conditions will differ from case to case.

Collateral

Good collateral is a good mortgageable property or capital-forming life insurance and, of course, a well-filled bank account (however, the self-employed person then does not need a loan). For a small loan a slightly better car may suffice. Valuables, jewelry, antiques, precious metals, etc. The banks do not like collateral, as it is too difficult to realise.

Guarantee

The guarantee is an excellent way to improve the conditions of the self-employed loan. Ideally, the applicant is married or lives in a (registered, in any case resilient) civil partnership with a person who has a secure and good income and is a guarantor. It can also be a parent or sibling or a partner. deal with an adult child. If collateral is added and the bank is generally prepared to grant loans to self-employed persons at favorable conditions, these can turn out really well for the applicant. Both sides must think carefully about a guarantee (borrower and guarantor). It is recorded in the guarantor's Schufa as if he had taken out his own loan and thus lowers the Schufa score somewhat. The guarantor is therefore limited in his ability to borrow until the loan he is guaranteeing has been repaid. Apart from that, it means of course that in case of emergency he has to answer for the credit of the self-employed person. Guarantees can be structured as follows:

With a deficiency guarantee, the guarantor only has to step in when the borrower is proven to be insolvent. Even a foreclosure remained unsuccessful.
In the case of the directly enforceable guarantee, the guarantor already pays at the first installment default of the borrower, whereby the bank must legally prove the guarantee if necessary. Banks love this form and reward it with more favorable interest rates. The guarantor must know what to expect. If the borrower does not have a particularly good payment record, the guarantor must think carefully about his willingness to do so – otherwise he will end up paying every second or third installment of the loan. This is likely to severely strain the relationship between the borrower and his guarantor.
The guarantee on first demand is also a directly enforceable guarantee, but it grants the bank even further powers – it no longer has to legally prove the guarantee, but can get its money from the guarantor immediately. Should this have been wrongly named, he must get his money back. This variant is apparently very advantageous for the bank, but it is also fraught with uncertainties, which is why the directly enforceable guarantee is usually preferred.
In the case of a (rare) global guarantee, the guarantor is liable for all of a borrower's liabilities to a specific bank. If a loan is already running and the bank extends the credit line, the guarantor is also liable for this – a very risky option for the guarantor.

Conclusion

A coupling of the possibilities mentioned leads to demonstrably better interest conditions with the credit for independent ones. Effort is required for this, but it can be very worthwhile.

From 34,400 to 53,600 Swiss francs for a house: Costs of home ownership in Switzerland rise significantly

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